Education and Career Forum

Hi,
I had taken an Educational Loan of Rs. 6.5 Lacs from Bank of India for my MBA. They said me that they would charge a fixed interest rate. I have started repaying EMI after completed my course and paid the amount with same interest rate for a year. Then, when I inquired I was still having Rs. 6.75 Lacs of outstanding and the bank has started charging interest rates more than what they said. How could it be possible? I could not get any satisfactory answer regarding this from BOI. Then, because of my financial problems, I could not repay for few months. Last month, I have got a letter from the Bank to repay the rest outstanding of Rs. 7 Lacs.

If you have applied for the Educational Loan under the Floating Interest Rate then the interest per annum may get changed.
Now that you are being a defaulter you need to make sure that you pay your EMI's so that you can get the proper answer from the Bank Authority.
As you have applied for the Fixed Interest Rate it can be said that the Interest amount must not change under any circumstances.
So you need to pay your EMI's and if the Bank does not give a proper answer it is best for you to go the Consumer Forum or Court to get the required answer from the Bank.