I applied for home loan of 12.0 lakhs (for property value of 21.0 lakhs) on 4th Sept 2013. I got SMS (only) from SBI stating sanction of 12.5 lakhs (adding insurance premium) on 19th Sept 2013, with many conditions to fulfill (such as mainly town planning sanction letter – blue print, discrepancies in search report, NA order etc.). It took long time to complete all these (due to delay in builder and advocate side) and finally equitable mortgage was done on 29th Jan. 2014. After completion of some more formalities such as affidavits and so on, Agreement letter was given on 7th Feb. 2014, wherein rate interest stated is (base rate: 9.8 + 0.25 = 10.05).

First disbursement was done on 8th Feb. 2014. My concern is what is applicable rate of interest in this case – ROI on date of sanction or ROI of Agreement letter or ROI on date of disbursement? I asked manager but he stick to date of sanction. He had opened loan account on the 19th Sept 2013 and put ROI as 10.25. Then what is the use of ROI mentioned in Agreement letter? This letter does talk of date of sanction and only mentions today\’s ROI. Manager has agreed EMI for 12 lakhs and not for 12.5 lakhs as I refused to consider insurance premium as it was Life insurance for loan security and not home insurance. Already, I have more than enough Life insurance and he got convinced.

Where and whom to write for the rate of interest? please guide me.

Thanks.