SAMPATH BANK (SAMP.N : LKR256.00)------Softlogic Equity Research

They have sent letters to most loan holders saying cost of funds have increased so the interest rate will increase by 1%. These guys are a joke in this way.

Unless the interest rates have been taken as flexible and not fixed ?

balapas wrote:They have sent letters to most loan holders saying cost of funds have increased so the interest rate will increase by 1%. These guys are a joke in this way.

කිත්සිරි ද සිල්වා wrote:Unless the interest rates have been taken as flexible and not fixed ?

balapas wrote:They have sent letters to most loan holders saying cost of funds have increased so the interest rate will increase by 1%. These guys are a joke in this way.

This is for the fixed rate term loans. Unless its an unavoidable circumstances to increase I see this as a mean to show higher returns for coming quarters. Those who know ppl should dispute this and get it reversed.

Looks very unethical.
(Although I hold SAMP in my Pf).

balapas wrote:

කිත්සිරි ද සිල්වා wrote:Unless the interest rates have been taken as flexible and not fixed ?

balapas wrote:They have sent letters to most loan holders saying cost of funds have increased so the interest rate will increase by 1%. These guys are a joke in this way.

This is for the fixed rate term loans. Unless its an unavoidable circumstances to increase I see this as a mean to show higher returns for coming quarters. Those who know ppl should dispute this and get it reversed.

That is quite surprising balapas. Are you sure about that?

But there are many who plead with the bank to reduce their fixed rate when the rates go down and the bank eventually reduces a bit in fear of them taking a cheaper loan from another bank and settling it.

First Guy wrote:That is quite surprising balapas. Are you sure about that?

But there are many who plead with the bank to reduce their fixed rate when the rates go down and the bank eventually reduces a bit in fear of them taking a cheaper loan from another bank and settling it.

In the first place why there are two schemes of flexible and fixed interest rates
And also mind you we are not witnessed drastic change in interest rates in the market.
If this is true consequenses should be much much worse for the bank.
I still believe they cant do such to a person who took a fixed rate loan unless otherwise there is a Jilmart in the agreement.

I saw one of the agreements since a cousin of my wife had taken a professional loans. They marketed a loan scheme for professionals at 10% beginning of year. So after 7 months they want to increase. I believe these funds are already matched by the treasury to avoid risk and should not be increased. Seems like some jilmart. If cost of funds have increased and interest rate has to increase its a floating rate loan. How can it apply to a fixed rate loan. However dealing with banks is like dealing with the known devil so should be able to dispute it. Lesser the finance knowledge easier to push these schemes

balapas wrote:

කිත්සිරි ද සිල්වා wrote:Unless the interest rates have been taken as flexible and not fixed ?

balapas wrote:They have sent letters to most loan holders saying cost of funds have increased so the interest rate will increase by 1%. These guys are a joke in this way.

This is for the fixed rate term loans. Unless its an unavoidable circumstances to increase I see this as a mean to show higher returns for coming quarters. Those who know ppl should dispute this and get it reversed.

Carefully go through the Offer Letter / Loan Agreement, if it is fixed for the full term of the loan without any review conditions, they can't increase the rate.

If still they increase 01st you can complain to the Financial Ombudsman, web add is given below

[You must be registered and logged in to see this link.]

If you are not satisfied with his decision, you can take legal action as well

Thanks TT.

Top Trader wrote:

balapas wrote:

කිත්සිරි ද සිල්වා wrote:Unless the interest rates have been taken as flexible and not fixed ?

balapas wrote:They have sent letters to most loan holders saying cost of funds have increased so the interest rate will increase by 1%. These guys are a joke in this way.

This is for the fixed rate term loans. Unless its an unavoidable circumstances to increase I see this as a mean to show higher returns for coming quarters. Those who know ppl should dispute this and get it reversed.

Carefully go through the Offer Letter / Loan Agreement, if it is fixed for the full term of the loan without any review conditions, they can't increase the rate.

If still they increase 01st you can complain to the Financial Ombudsman, web add is given below

[You must be registered and logged in to see this link.]

If you are not satisfied with his decision, you can take legal action as well

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