House loan, clarification requested?

I have taken House loan from a bank of State Bank group in 2006 for Rs. 11 lakh @ 9.25% floating interest. I gave to the Bank pre dated cheques for collection of monthly installments so that the bank can enter the figure. Bank is being collecting Rs. 11,400/- towards EMI. The interest rates were changed from May 2007 on wards from 9.25% to 12.25%. At present it is at 10.25%. Upto September 2009 the Bank is being collected Rs. 11,400/- towards EMI. The Bank has send a notice to me stating that there is due for an amount of Rs. 30,000 which is due to fluctuations in the interest rates. I got statement from the bank for my payments done. The statement shows that bank has not collected the amount additionally for the increased rate of interest but merged the same in the principal amount. This process is going on till to date. The bank has never informed me about the increase in the interest rates or collected the increased amount through my blank cheques. The amount of Rs. 30,000 includes monthly due amounts for increased rate of interest and its cumulative interest from May 2007 onwards. As the bank has not collected the increased amount monthly even though blank cheques are available, and it is of their fault, the cumulative interests on the monthly due amounts for increased rate of interest should not be charged. This is my version. Hence I request you to offer your suggestions on this issue.

1 month ago - 2 answers