Loan Contract/different Intrest.

[katom]

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.

[katom]

Isnt it BIG RED LIGHT TOPIC ??!

[solo siam]

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

[katom]

In the land office contracts

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

NOT registered yet!

[solo siam]

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

[katom]

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 .

[katom]

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