Tuesday, February 6, 2007

Personal interest litigation

I do not understand economics. For that matter most things in life. I only experience. RBI governor says Indian economy is overheating and he has to increase the interest rate of lending money to banks. In turn banks increase the interest rate on home loan. My impression was that RBI wanted to discourage people taking home loan.

I have taken floating rate home loan. Now I feel like bonded home loaner. I think a fundamental flaw in RBI governor's thinking has led to my predicament. I wanted to assure him I had no interest in heating up the Indian economy. When I took the loan neither I nor RBI had any inkling of the things to come. Now, RBI can take corrective measures but what about me? Where is the logic in a policy that fundamentally wants to scare the future buyers in fact affects the past buyers who have no room for any adjustment? If this is the reason for increasing lending rate, it should not affect the existing floating rate.

I could assure you, had I been known that the my floating interest rate would go up in the future because I had taken a home loan, then I would not have taken that loan in the first place. I care Indian economy and I have utmost interest in keeping it in good health without overheating it(which I presume is bad and detrimental for the country). Therefore, I cannot accept the fact that my home loan rate has been increased because I have taken the home loan which I should not have done. I need more dignified reasons for increasing the floating home loan rates. Overheating? I feel I am being laughed at.

So, I wonder if I can sue RBI for being responsible for increasing floating interest rate for a reason that does not exist in the phenomenon of taking a home loan.

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