Can banks charge a fee to lower rate of interest for home loans ?

POSTED BY Kunal D ON March 18, 2015 3:52 pm COMMENTS (2)

Hi,

Axis Bank has offered to reduce the rate of interest for my home loan from 10.65% to 10.30% by asking me to pay a nominal charge of Rs 7500/-+ Service Tax.

I am on a floating rate home loan.

I wish to know are banks entitled to ask a fee to reduce the rate of interest & is this in accordance with RBI guidelines?

Thanks in advance.

– Kunal

2 replies on this article “Can banks charge a fee to lower rate of interest for home loans ?”

  1. ManojSharma says:
    July 22, 2015 at 6:04 pm

    Hi,

    Yes bank can ask for the charge because they have already signed off all the terms & condition in advance in loan agreement.

    Current interest rate for housing loan is 9.70% the best option is go for balance transfer from other bank and at that time your existing bank will try to retain you and that time you can ask to reduce the interest rate without paying a single rupees. you can check the current rate at http://www.mortgage-loan.in

    Reply
  2. Hemanth says:
    March 18, 2015 at 6:24 pm

    yes, they can do that

    Reply

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