I have read a review just now when one person was annoyed with the rising rate of interest on housing loan by Standard Chartered Bank.
I think if one had opted variable interest rate than he have no option but to pay the interest as and when RBI directs.Even if you feel that despite reduction of housing loan rate by RBI, your rate is increased , you should ask the Bank under The Right to Information Act and they will be bound to reply you upto your entire satisfaction. Even many Banks /Housing companiesoffer for a switch over from fixed rate to variable and vice versa.
One has to be more careful when dealing with financial institutions.When their marketing professional contacts you for your loan requirement, normally very few people care to read the terms and conditions of the Application Form and Agreement on General Stamp Paper and sign in haste.
I do remember when the housing loan rates were going down, many people opted for variable interest rates, now they feel not so good on their decision.Obviously in the growing economy, when index and inflation rates are going high, interest rates will also rise.
Now a days infra structure industries is passing through a boom and many foreign players are entering the country and this is the time when any one who interacts with them, must read carefully their terms and conditions and be rest assured about the construction quality and material being used. Before investing in any company’s housing scheme, he should see that all NOCs from state and central government has been taken. Obviously for quality, they never compromise and you get a good house.
Similarly when you are investing in infra structure bonds, you should compare the rates offerred by other companies and their credit rating(rea lone).These investments are under lock in period of 3 years and you avail Income Tax relief .In these investments normally interest rates are lower than the normal other investment scheme.
Ravi Sharma
r_kantsharma