I took a housing loan below Rs30.00 from State Bank of Travancore in the year 2006, under floating rate of interest – 2.25% below the SBTPLR. Recently the bank gave me a letter which in effect says if I make a one time payment of 1% on the outstanding balance I can switch over to current card interest rate. My question is what is this current card interest rate scheme? Is it different from the floating rate of interest scheme which I opted at the time of availing the loan? Am I not entitled to the changes in the interest rate under the floating rate scheme? why Should I again opt now and that too for exercising this option Ishould pay 1% one tome switching over fee? Please advice.
j.r.kota