Are Floating Interest Rates Of Banks Burning Holes Into The Customers' Pocket?

1,124 Views Updated: 01 Jun 2017
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Are Floating Interest Rates Of Banks Burning Holes Into The Customers' Pocket?

Most banks in India whether private or nationalized have the norm of floating interest rates which means that though while taking a loan there may be a particular interest rate, the bank has every right to change this interest rate.

Most of the times the interest rates are increased especially by private banks without the knowledge of the customer and overburdens him with more number of EMIs. I have known of customers who had just the last EMI to pay when he is informed that the interest has been increased and he has to pay more. This is nothing but cheating of customers by the banks. How long can this continue? The result is nothing but increase in the number of defaulters and future legal issues. Isn't this floating interest burning holes into the pockets of the customers?

Opinion
Yes

Through floating interest rates banks would be losing customers, as well as the number of defaulters, would increase.

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