Apr 01, 2008 05:55 AM
2684 Views
It appears very simple but actually it is highly enchanting. The world of banking finances a client and taking interest. It should be a simple way of asking interest on an annual basis on reducing balance. Here our state bank and many other bank have started tempting customers offering funds at a cheaper comparative rate which unless known by customer and asked for clarification seldome clarifies that it is flat rate. First of all common man like me does not understand what is flat rate.
I was offered a loan on my credit card at 14% rate of interest. Which on confirmation and receipt of statement was understood that it was a flat rate and due to this the loan worked out to be around at rate ofinterest more than 30%. This is a big loot mart. They send an offer by letter/mail/ sms. They write 14 %. They make a call on cell or land line. They do not mention it is flat rate. After you confirm a recorded confirmation is repeated at a very fast speaking person where he says it is flat rate. And most of the time and most of customers confirm and later when if they calculate they find it was a very high rate of interest. This practice is adopted by private money lenders where most of borrowers are either highly needy/ uneducated/ not understanding money management. But now to my shock sbi a nationalised bank where it was not expected have gone into such bad tactics in pulling business.on complaining telephonically a reply come like do what you can we shall continue to do this.
