POSTED BY December 4, 2013 2:24 pm COMMENTS (3)
ONHi,
I have a Rs. 30 Lac home loan from LICHF since November 2011. Recently i checked rates of LICHF and other NBFC and banks and they are offering loans at much lower rates of 10.1 to 10.35% where as LICHF is currently charging me @10.9% for my floating loan. I have NOT taken any offers of fixed rates for 2 or 3 years etc.
I read about RBI and NHB abolishing pre-payment charges even by balance transfer but my agent siad that the 2% penalty will be applicable in LICHFs case. Can you please confirm if he is right and LICHF have been give rights to charge the 2% penalty even for the full floating rate loan?
I plan to shift my loan to SBI or HDFC which seem to be better to take loan from. Please advise.
Thanks in advance.
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Dear Himanshu, please do not contact your agent. contact LIC HFC directly and inform your desire to swithc the loan. the branch manager ‘ll offer you the new rate of LIC HFC applicable to new customer and you w’d have to pay a conversion fee for the same.
Thanks
Ashal
Thanks Rahul. Your suggestion should be very useful. I will check with my agent as well as some other LIC agent to understand the penalty structure if any.
Thanks again.
Regards,
Himanshu
RBI has abolished prepayment penalties for housing loan. But mostly the rules are applicable to banks, not sure about NBFC.
1. Ask your agent to give you the circular no/reference no so that you can verify it from its website.
2. Other thing is that, approach some other LIC agent and tell him you are interested in home loan. Get it confirmed from him if the prepayment penalty is applicable or not.
Thanks,
Rahul