Took up a bank loan back in 2011 where the terms are 0.7% + 3 mths sibor perpetually. The bank just recently "notify" me that going forward, the rate will be 0.85% + 3 mths sibor instead.
Do check your loan carefully. The banks seems to be pulling a stunt on borrowers.
The Tnc as follows (I cut down on some unnecessary wordings which has no impact)
(d)
Contractual period 1 (for 1st year from date of disbursement) - 3 mths Sibor + 0.7%
Contractual period 2 (Thereafter) - 3 mths Sibor + 0.7%
(e) The minimum effective interest rate whall be 0.8% p.a.. Interest rates are all subject to review and may be adjusted from time to time depending on prevailing market conditions. The bank will not be giving advance notices to the Borrower for any changes in the interest rate
They are saying that even if they decide to change the spread to 10% or even 100% tomorrow, they can still do it.
Edit: Will be writing in to MAS and ABS on this matter. For those affected person, please PM me and see how we can submit a joint petition letter. In particular, on clause (e):
It is interesting to note that the second sentence "Interest rates are all subject to review and may be adjusted from time to time depending on prevailing market conditions." does not refer to Citibank at all. Thus, reading strictly by the rule, Citibank does not have the right to change the interest rate. The interest rate that will be changed is referring to Sibor.
Please see the images on the flyer and the loan agreement. there are other supporting documents which I will not be uploading at this point of time.