I am trying to close a Plot loan after 4 yrs of commencement by paying outstanding amount. The Bank is insisting on charging additional interest after the first 2 years as I have not yet constructed a house on that plot, saying that I was given a Housing loan interest rate and that this is the Bank's rule.
There was no such clause when I signed up for the loan. I have not made any undertaking of this nature. Can the Bank still do this? Can I legally refuse to pay this additional amount?