Hi,
I took home loan -45 laks from SBI two months ago with interest rate 10.40% under floating scheme. Last month there is decrease on base points by RBI. When i contacted SBI about this decrease, they confirmed this change will reflect automatically into my interest calculation and also it is very clearly mentioned in my loan sanction letter,this will happen into my calculation in future also, whenever RBI announce change in Basepoints.
I can find the find following statement in my loan sanction letter ¨Applicable interest rate = BASE point(whenver announced by RBI)+0.4 %¨. This will come to effect on the very first day when RBI announce.
I gone through some blogs posted in this site. Many people are discussing about the switching of the existing SBI home loans to newer interest rate by paying convertion fees.
Really it is confusing me. Could you please clarify.
Thanks,
Saravana