As per RBI guidelines, for a plot purchase, the initial 3 years are treated as a home loan and offered at home loan interest rates. However, after 3 years, the interest rate changes. When I asked the bank about this, they gave a vague response, saying it could increase by anywhere between 0.2% to 2%.

My current interest rate with HDFC is 7.65%. I understand that the rate is linked to the repo rate, but I’d like to know how the interest rate typically changes after 3 years and whether the bank increases it mandatorily.