Undue increase in Home Loan interest rate

Location/place: hyderabad

Name of company/service: GIC Housing Finance Ltd

I got Home Loan Sanction / offer in the month of Nov’11 and the same was disbursed in Dec’11.

Interest term as per the offer letter is ‘Flexible Rate of Interest 10.5% p.a variable – The rate of interest is subject to reset at beginning of every quarter on the First day of the months Jan, Apr, Jul & Oct of ever calendar year, unless otherwise agreed upon. The Interest Rate is with reference to ‘Base Lending Rate’ (BLR) of the Company and may result in higher or lower chargeable Rate of Interest as per the prevailing BLR of the Company’.

The BLR of the Company at the time of saction was 12.5% and the interest rate for my Home Loan was 10.5%. I was given to understand from the offer letter and my discussions that the Interest rate is linked to the BLR of the Company, which is the practice followed in Home Loans.

But surprisingly, my Home Loan rate was increased to 12.5% in Apr and when I enquired I was told that the 10.5% interest rate was only an offer for first three months and post that it will be equal to the BLR rate. Therefore with in three months the interest rate is increased by 2%, which is a major hit.

I approached the Branch to understand and sent mails to the Corporate Office but no response.

In my opinion this is really unfair practice followed by the Company and need solution.

Please help me on how to proceed to ensure that the unjustified increase in interest rate is controlled as per the terms.

Please let me know in case of any information or clarification.