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If you have paid all your instalments in time you should consider transferring your existing loan to any other bank as you are likely to get an interest rate of around 10.50-10.75 per cent.

I had taken a house loan from Bank of Baroda at floating rate of interest for 25 years in January 2005. In recent days the Bank is frequently raising the interests rates and at present I am paying 14.5 per cent interest per annum. I want to change the loan tenure from 25 to 10 years but the bank says it would hardly make any difference since there is hardly 0.25 per cent difference in interest rates between these two terms. Besides I would also have to pay the processing fee. What should I do?

Dr.Upendra Choudhury,Aligarh

If you have paid all your instalments in time you should consider transferring your existing loan to any other bank as you are likely to get an interest rate of around 10.50-10.75 per cent even in this high interest rate regime. The difference between what you are paying and the market rate is so large that this will in variably be more profitable even after considering all possible charges. Transferring your home loan involves the modalities of handing over the property documents from your existing bank to the new bank. You will need a track record of payment of your EMIs in time to be able to get an offer from another bank to take over your existing loan.

I had purchased Vacation Time-Shares of a resort of a private company in Himachal Pradesh in 1997 at a price of Rs 20,000. As per agreement,I could stay in the resort for seven days every year free of cost for a period of 51 years. This facility was made available for seven years,till 2004 after which the company sold off the resort without any intimation to me. Their whereabouts were not known all these years. Last month the refunded me the original amount of Rs 20,000. As my money remained blocked with the company for seven years without giving me the facility of free stay as per agreement,I want to know whether I am entitled to claim interest for this period. If yes,should I go to a civil court or a consumer court?

Bhupinder Singh,Mohali

Resolution of the matter depends on the terms and conditions agreed upon under the agreement executed by you with the company. Please go through the agreement to understand your entitlement as regards claiming interest. You should seek the help of a good lawyer who would help you understand your rights as per the agreement. If you are entitled to interest,you can file a complaint against the company. Even if you are not entitled to interest under the agreement,you can still file the case with district consumer forum for deficiency in service,this can be done you yourself or you can take help of a lawyer who specialises in consumer matters.

The expert is CEO,Apnapaisa.com
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