Hello,

In March-2013, I had taken home loan from LIC housing Finance Ltd, pune with fixed interest rate of 8.9% for 3 years. The fixed interest period is over and now LIC raised interested rate to 11.65%. Now I am thinking to do balance transfer to another bank / financial institute and came with two options. 

 

1. Option # 1: HDFC – Floating interest rate of 10.15%.
2. Option # 2: ICICI – Below choices are available and ICIC will credite 1% of EMI amount to our account (it can be adusted towards principal of loan) at the end of 3 years.
   1. Floating interest rate of 10.15%. 
   2. Fixed interest rate of 10.15% for first 2 years and then floating. 
   3. Fixed interest rate of 10.50% for first 3 years and then floating. 
   4. Fixed interest rate of 10.75% for first 5 years and then floating. 

I am confused between which options to be chosen – HDFC and ICICI and which choice to be opted in ICICI. Earlier I had taken home loan from HDFC for another home and have very good experience with them. I don’t have any experience with ICICI for home loan; however I heard that ICICI will put additional charges for most of the things. Also ICICI will be last to reduce interest rate and first to increase interest rate if RBI changes repo rate.

 

Please help to resolve confusion.

 

Thank You.