I have availed a home loan with standard chartered bank in the year 2004 @ 7.25% floating rate of interest.in the period of 4 years the interest rate has increased to 12.75%. After the recent worldwide decision as a bailout package to help the industries overcome the recession government has announced various measures. Further to this RBI has requested Banks to reduce the lending rates on housing loans. Banks like SBI, LIC Housing Finance and ICICI have decreased the interest rates. I have been in touch with Standard Chartered in this regard and I am only receiving stereo type of answers from there without any solution.
Standard Chartered claim that the Bank incurs operating expenses and a minimum margin to cover regulatory requirement of provisioning, capital charge and profit margin. Actual cost of funds has changed radically from the time the loan has been taken and can be seen from the entire industry's approach on the same.
My question is that do all other Banks also incur the same or this is a special cost incurred by only Standard Chartered. If other Banks also incur the same cost then how is it that they are able to reduce the rate of interest.
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