Because rescheduling the loan creates a new contract between the debtor and the bank, the bank is entitled to ask for new interest rates. It can happen in a variety of ways, such as when the debtor and creditor agree to change the nature of the original debt or to replace it with a new one. The client’s commitment must be renewed, the first commitment resulting from the current account must expire, and a new commitment must be placed in its place.
Since all sides are in agreement on this subject, you must resolve it amicably in order to determine the greatest percentage for you. If you are unable to come to an agreement, you may ask the court to decide the case.
It is decided in the Higher Court that: “The decision to renew the debt by changing its subject matter is a contract in which it is agreed that a previous debt will expire and that a new debt will replace it.
The customer’s commitment to change its source is renewed as a result of the bank’s agreement with the customer to close the current account and replace it with another banking facility with the debit balance from operating the current account. The first commitment arising from the prior current account is replaced by another new commitment with its terms and conditions, and the personal or in-kind commitment expires as a result.
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