If you have an existing loan of any sort from a bank or are planning to avail one, these guidelines on the soon to be introduced Base Rate system are a must read.
I particularly like this directive:
The Base Rate system would be applicable for all new loans and for those old loans that come up for renewal. Existing loans based on the BPLR (Benchmark Prime Lending Rate) system may run till their maturity. In case existing borrowers want to switch to the new system, before expiry of the existing contracts, an option may be given to them, on mutually agreed terms. Banks, however, should not charge any fee for such switch-over.
I have a car loan from a commercial bank — post July 01, 2010, need to see if this can be negotiated to better terms.
How about you?
[sniplet awareness fridays]
“on mutually agreed terms” … now would we see the devil in the details?
I need a guideline to apply for a credit card …..how can you help me?
@Austin: Great observation! I bet we will.
@Notary: There’s no such guideline. Of late, banks have become a little bit finicky when it comes to issuing credit cards.