Banks to hit loan defaulters with higher interest charges

A bank teller serves a customer. Some lenders have set out new interest charges for overdue loans to take effect next month. [File, Standard]

Borrowers are in for a rude shock as banks plot to slap them with new penalties if they fail to pay loans on time.

Defaulters will pay between 15 and 20 per cent on the outstanding amount, according to letters sent to customers that The Standard has seen.