RBI had announced the base rate system which will set the interest rates for the bankers to lend their borrowers. Earlier the rate is known as the Prime Lending Rate(PLR) for the banks. Normally the banks can not lend the money below the PLR to avoid any loss or risk. But, banks started offering the loans cheaper than the PLR to lure the customers. This is also called as the Teaser Loan Rates where the actual loan rates will increase in the later period of time. That will put the extra burden on the borrowers.
RBI come up with the new base rate system where banks can lend the loans based on the new rating system. Earlier it announced that the new system will be effective from April 1,2010. After hearing the request from most of the banks to postpone the new system implementation for another few months, recently RBI announced that the new system will be effective from July 1, 2010.
Also RBI had agreed to exempt the three categories of the loans under this system as follows:
- Staffer Loans
- Loans against Fixed Deposits
- Loans under the differential rate of interest scheme
After the implementation of the new system, it is expected to be increase in the interest rates on the various loans. It includes the home loans which currently offer the teaser rates like 8% for first two years and later the new rates will be effective.
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June 30, 2012 at 4:02 am
Dear Concern,
Although the RBI step is good for trasparancy, But The banks make fraud with existing customers like me. How? I get the home loan by BPLr syestem as base rate comes in july 2010.My rate of interest was ACCORDING TO BPLR AND FLOATING(MEANS IF THE RATE WILL DOWN THE INTEREST WILL LESS AND IF RATES WILL UP THE INTEREST WILL MORE), BUT AFTER BASE RATE BANKS SHOULD PROVIDE BENEFIT OF LESS RATE TO FLOATING CUSTOMER BUT DUE TO PARRRAL BASE SYSTEM THEY DID NOT INFORM TO CUSTMER THAT THEY SHOULD CHANGE THE BPLR TO BASE RATE AS BASE RATE THEY REDUCED AS THEY NEED NEW BORROWER BUT THE BPLR THEY DID NOT REDUCE AND LIKE ME THINK THAT THE BANK WILL CHARGE AS NEW BASE RATE AND FINALY AFTER 2 YEAR I KNOW THAT BANK WERE CHARGING ME BY BPLR SYSTEM AND NOT CHARGE AS BASE RATE FROM JULY 2010.I CHEATED BY BANKS BY MINIMUM 0.5% INTEREST RATE MINIMUM.AS DIFFERENCE IN BOTH SYSTEM IS 0.75% OR MORE NOW.
IF ANY PERSON CLAIM ON ABOVE KIND FRAUD IN CONSUMER COURT THEY WILL DEFINATELY CAN GET HIS/HER MONEY FROM BANKS.AND CAN MAKE A WRITE IN COURT AS “PUBLIC LETEGATION WRITE” AS IT IS VERY BIG SCAM BY BANKS TO EXISTING BORROWERS.
ALTHOUGH RBI ALSO MUST KNOWS BUT RBI ALSO WANT TO MAKE STRONG TO INDIAN BANKS BY ANYWAY(CHEATING).THIS KIND SCAM NOT ONLY DONE BY PRIVATE BANKS BUT ALSO BY NATIONALISED BANKS.
June 30, 2012 at 7:29 am
Hello p gupta,
Thank you for sharing your experience with us. Yes. not only the private banks, nationalized banks also hide the important facts to the customers and charge more fees. This kind is issues must be handled by the RBI.
Thanks,
Krishna