Skip Navigation Links
Bank charged a high interest rate for a loan
09 Jan 2022 (260 views)  

The business customer applied to renew a loan from the bank. He opted for repayment at floating interest rate. 

The application was not finalized. Apparently, the bank was overwhelmed with too much business and the workflow was chaotic. 

The customer realized the problem when he received a statement from the bank charging him the default interest rate of 6.5%, when the floating rate was only 1.6%. The difference was a few few thousand dollars each month. 

He raised the issue with the bank. The bank officer apologized and acted to change to the floating rate at the next available date. In the meantime, the customer had to pay the higher default rate. The difference for several months was about $15,000.

The customer asked for my advice. 

I told him to speak to the manager, as the bank officer did not have the authority to write off the $15,000. He agreed with my suggestion. 

I wish him all the best. I hope that he is successful in getting the bank manager to write off the $15,000, as this is the fault of the bank.

Tan Kin Lian


Bank charged a high interest rate for a loan
[Back] [Print]


The business customer applied to renew a loan from the bank. He opted for repayment at floating interest rate. 

The application was not finalized. Apparently, the bank was overwhelmed with too much business and the workflow was chaotic. 

The customer realized the problem when he received a statement from the bank charging him the default interest rate of 6.5%, when the floating rate was only 1.6%. The difference was a few few thousand dollars each month. 

He raised the issue with the bank. The bank officer apologized and acted to change to the floating rate at the next available date. In the meantime, the customer had to pay the higher default rate. The difference for several months was about $15,000.

The customer asked for my advice. 

I told him to speak to the manager, as the bank officer did not have the authority to write off the $15,000. He agreed with my suggestion. 

I wish him all the best. I hope that he is successful in getting the bank manager to write off the $15,000, as this is the fault of the bank.

Tan Kin Lian