My bank is charging a higher rate of interest on my home loan because of my past credit record. Is the bank within its rights?Banks charge an interest rate on a product based on the profile and loan requirement of the customer. If you have defaulted on any of your payments in the past, this will have a negative impact on your creditworthiness. In such a case, the bank may charge a comparatively higher interest rate than what you could get with a clean repayment record. So, the bank is within its rights to charge you a higher rate.
