Loan Account Number: 3049 8871 0025 6
Customer ID / CIF: CIF 80554213
Date: 2 April 2026
Place: Pune
Sent by: email, and by hand against acknowledgement
To
The Branch Manager
Bank of Baroda
Retail Asset Branch, Aundh, Pune
Ground Floor, Sunrise Plaza, Aundh Road, Pune 411007
Copy to: The Nodal Officer / Principal Nodal Officer, Bank of Baroda
From
Kavita Ramaswamy and Anand Ramaswamy
B-704, Meridian Heights, Baner Road, Pune 411045
Phone: +91 XXXXX XXXXX
Email: kavita.r@example.com
Subject: Loan Account 3049 8871 0025 6 — application to reprice the loan to Repo Linked Lending Rate (RLLR / EBLR), and to be given the switch fee and the revised terms in writing before anything is debited
Dear Sir / Madam,
1.1 This letter concerns the loan account described below, which stands in my name jointly with Anand Ramaswamy. Please quote the loan account number on every reply.
1.2 Particulars:
- Loan account number: 3049 8871 0025 6
- Type of loan: Housing Loan
- Purpose for which the loan was taken: a personal or household purpose
- Date of sanction: 1 April 2026
- Amount sanctioned: ₹42,00,000 (Rupees Forty Two Lakh only)
- Principal outstanding today: ₹29,65,000 (Rupees Twenty Nine Lakh Sixty Five Thousand only)
- Present EMI: ₹31,480 (Rupees Thirty One Thousand Four Hundred and Eighty only)
- Balance tenure: about 148 months
- Present rate of interest: 9.35% per annum
- Present interest rate basis: Base Rate
- Status of the account: regular — no EMI is overdue
- How that rate is made up: One-year MCLR 8.95% + spread 0.40%
- Security: Equitable mortgage of Flat B-704, Meridian Heights, Baner Road, Pune
2.1 Please reprice this loan account from its present basis — Base Rate — to Repo Linked Lending Rate (RLLR / EBLR), with effect from the earliest date your systems allow.
2.2 Before you process anything, please send me in writing the price of that change and the terms on which it will be given effect, as listed in paragraph 6 below, so that I can accept them.
2.3 Please treat this as a formal application under your Board-approved interest rate policy and under the Reserve Bank of India instructions named in paragraph 3, register it in your customer service or grievance system, and give me the reference number.
What you are charging new borrowers today. For a new loan of the same kind, Bank of Baroda is presently offering: 8.40% to 8.75% per annum for salaried borrowers, as published on your website on 3 September 2026. I am paying 9.35% per annum on the same book, on a loan you have already made, secured on the same terms, with a repayment record you can see. That gap is the reason for this letter.
3.1 The Reserve Bank of India instructions I rely on are set out below. Those in paragraphs 3.2 to 3.4 are addressed to banks. The framework in paragraph 3.5 reaches banks, non-banking financial companies and housing finance companies alike, but only in respect of EMI-based personal loans. Please tell me in your reply which of them you accept as applying to you and to this loan.
3.2 By circular DBR.DIR.BC.No.14/13.03.00/2019-20 dated 4 September 2019 on External Benchmark Based Lending — since carried into the Master Direction – Reserve Bank of India (Interest Rate on Advances) Directions, 2016, as amended from time to time — banks were required to link all new floating rate personal and retail loans, and floating rate loans to micro and small enterprises, to an external benchmark with effect from 1 October 2019. The permitted benchmarks include the Reserve Bank's policy repo rate and the Government of India three-month and six-month Treasury Bill yields published by Financial Benchmarks India Private Limited.
3.3 The same circular deals with loans such as mine, sanctioned on an older benchmark. Existing loans linked to the MCLR, the Base Rate or the BPLR continue until repayment or renewal. But floating rate term loans sanctioned to borrowers who are eligible to prepay a floating rate loan without pre-payment charges are eligible to be switched over to the external benchmark without any charges or fees, except reasonable administrative or legal costs. For that class of borrower the circular goes further than the fee, and fixes the rate as well: the final rate charged post switchover shall be the same as the rate charged for a new loan of the same category, type, tenor and amount, at the time of origination of the loan. It is only for existing borrowers outside that class that the circular leaves the move to be made on mutually acceptable terms. By circular DBOD.Dir.BC.No.110/13.03.00/2013-14 dated 2 June 2014, banks were told not to charge foreclosure charges or pre-payment penalties on floating rate term loans sanctioned to individual borrowers. If this is a floating rate term loan sanctioned to me as an individual, I am in the class of borrower that provision describes.
3.4 On the spread. Under the same September 2019 circular a bank is free to decide its spread over the external benchmark; but the credit risk premium may be changed only when the borrower's credit assessment undergoes a substantial change, as agreed in the loan contract, and the other components of the spread, including operating cost, may be altered once in three years. The rate under an external benchmark must be reset at least once in three months.