hi, I am new to all this thing of loans (in ll my life..) so here is the situation:

bank agree to loan me 200K for changing MLR . (today 6.85-7%).

I got the contracts to look over them and surprise!

In the bank contract I sign on changing MLR depend on the country/central bank.

which is about 7% ,right?

BUT!!

In the land office contracts I see that they type that I loan it (200K) for 19% !!!!!!!!!!

Lucky I still didnt sign !

I want to hear if its normal because it doesnt look right to do for me !!impossible to sign on 19% intrest.. .

After talk on the phone with the guy from the bank he claim like this:

If you take the loan and fail to pay/late or whatever (the documnet still on process of translation..) the bank can take up to 19% intrest that is the maximum allowed by the central bank today.

If everything is ok so I pay by the MLR.

Am I stupid/crazy?

thank you.

Isnt it BIG RED LIGHT TOPIC ??!

Your OP doesn't make any sense, why were you at the land office?

In the land office contracts

means the contracts that need to be registered in the land office.

NOT registered yet!

So is it a loan?, a mortgage?, a loan against a home/land?

A loan against a home/land .

I think u didnt read my original messege otherwise you wouldn't speak like its so regullar and normal to take a loan on x rate

and declare in the land office contract (that I have seen before I sign and register it in the land office..) one a 3 times bigger rate . (!)

SO!! this is a big SO .

haa.... so never mind different intrest rate..ok thank you.