Benefitting from teaser home loan of SBI

POSTED BY Sambaran Mitra ON March 29, 2011 9:48 am COMMENTS (3)

The risks of teaser home loan rates are well known.

However if I plan to pre-pay the loan within the teaser-loan-duration, isn’t teaser loan a win-win situation? Or does SBI disallow prepayment in the teaser duration?

3 replies on this article “Benefitting from teaser home loan of SBI”

  1. ashal jauhari says:

    Dear Sambaran, Here I assume you do have some cash amount which you may use as part prepayment. For your case, My choice ‘ll be to park your amount in either FMPs or bank FDs of high rate as on offer today. At the end of your teaser term i.e at the end of 3Y of your loan, you may use the original amount as well as returns earned from that investment to prepay your loan.



  2. Ajay says:

    @Sambaran Mitra,
    SBI allows you to prepay, part prepay without any penalty. However pls check your loan documents once. You can turn it into your advantage if you prepay soon and within the first 2 years.

  3. Anand says:

    SBI does allow prepayment and that is without penalty, if the source of money is from yourself.

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