The interest rate on my loan document was ‘EIBOR + 2.5 per cent’. The interest rate during the period was only around four to five per cent. However, FGB charged seven per cent and added this to the loan amount. They claim that since there is a clause in the document, stating, ‘the terms and conditions can be amended by the bank’, they can change the interest rate to whatever they decide unilaterally.
I complained to them and received a response that they are unwilling to help. How can a bank change its interest rate whenever they want, during the tenure of a loan? Terms and conditions should not apply to interest rates and amount. Because I could not afford the interest, I was forced to sell the apartment.
From Mr Vasudeva Shenoy
The management of FGB responds:
FGB is grateful for all customer feedback to which we give careful consideration as we strive to consistently deliver the highest standards of service. FGB has been in contact with Mr Shenoy and explained that the loan was settled in 2013 for the outstanding amount agreed to by both the bank and the customer. FGB is unable to alter the terms and conditions of the settlement.
(Process initiation: November 23. Response from organisation: November 29. Process completion: December 8)