Bangalore: The teaser rate loans have started turning into floating rate loans from this year and the floating interest rate charged on these loans is between 11.50 percent to 11.75 percent. So what should  person do, who has taken the teaser rate loan last year or the years before that?

This change in the teaser rate loan into floating rate might be more depressing from the older consumers rather than the new ones as the new consumers can avail the floating rate loan at 10.50 percent to 10.75 percent, which is comparatively lesser. So now the consumers who took teaser loan will have to pay an additional interest of 0.75 percent to 1 percent.

The National Housing Bank (NHB) that governs the housing finance companies (HFCs) like HDFC or LIC HF, initially made it mandatory that the floating rate home loans should not be charged for prepayment. But later, in a circular they made some clarification saying that the prepayment charges will be payable if the loan is transferred to another lender in case of the teaser rate loans even if they have have turned into regular floating rate loans.