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8/24/2025

The biggest scam in India is floating-rate loans. When RBI increases rate - interest rate rises. When RBI reduces rate - request bank, pay conversion charges. This trap quietly ...

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Money Theory

@money_theory

The biggest scam in India is floating-rate loans. When RBI increases rate - interest rate rises. When RBI reduces rate - request bank, pay conversion charges. This trap quietly costs borrowers ₹5–10 lakhs 👇

Money Theory

@money_theory

It was April 2016. You walk into a bank and take a ₹1 crore home loan. The sanction letter says: “Linked to MCLR.” You don’t know what it means. You don’t ask. You just sign and move on.

Money Theory

@money_theory

You keep paying EMIs. On time. Every month. All good. Then COVID hits. RBI slashes rates to 4%. You read it. Smile. “Maybe my EMI will drop.” Spoiler: It doesn’t.

Money Theory

@money_theory

One fine day, you visit the bank for a loan statement. It still shows 6% interest. You ask why it didn’t drop. The banker says, “You’re on MCLR. Pay 1% conversion charges.” That’s when you realise, you’ve been quietly screwed.

Money Theory

@money_theory

In India, floating-rate loans work in 2 ways: MCLR: Bank sets the rate based on the cost of funds (till 2019) EBLR: Linked to RBI repo rate (from 2019 onwards) Here’s a quick comparison table 👇

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Money Theory

@money_theory

The surprising part? 36% of floating-rate loans are still MCLR-linked. Meaning: Lakhs of borrowers are paying higher EMIs, even after multiple RBI rate cuts.

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Money Theory

@money_theory

You’ve already lost lakhs. Don’t lose more waiting for your bank to call. Use this email template. Send it today. Credit: @Finprofz

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Money Theory

@money_theory

@Finprofz By the way, Your bank statement won’t tell you how much you overpaid. But Track That Rupee will. Get it now → store.moneytheory.in

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Money Theory

@money_theory

@Finprofz That's a wrap! If you enjoyed this thread: 1. Follow me @money_theory for more of these. 2. Repost to share this thread with your audience.

https://twitter.com/money_theory/status/1958877676548026769

Money Theory

@money_theory

70% of Indians don't have an emergency fund. One emergency = financial ruin. So I built a free emergency fund tracker. Claim it now: moneytheory.gumroad.com/l/emergencyfund

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