Greetings.

This is regarding the 'Floating' Home Loan Rate Policy of banks.
I my case I took home loan from HDFC in 2008, which has now reached to 10.5% and heading to 11% in next quarter.
Earlier I have paid them some processing fee in between to reduce my interest rate but again the rates went high after some duration.
Whenever I get in touch with bank, they ask me to pay processing fee to bring it down to current rate of 10.25%.

As and when there is any deduction announced on the home loan rates, bank personnel says that its only applicable for 'new' customers. What precisely is the definition of "Floating"?

Rare but whenever there is any sort of reduction in the rate of interest, does that also applicable for the existing customers or it always be for the new loans? If that is not the case, then how the existing customers get the benefit of the "floating" nature?

Please advise.

Best regards,
Vishal