Convert the loan from BPLR to Base rate in IDBI bank

POSTED BY rajamani_v ON March 22, 2014 8:23 am COMMENTS (4)

Hi,

I have a Home loan with IDBI, Bangalore. I am trying to convert it from BPLR to Base rate. Bank is asking a fee of .5% on the outstanding.Isn’t there a mandate from RBI that Banks shouldn’t charge customers for this conversion? Can someone please clarify?

Thanks.

4 replies on this article “Convert the loan from BPLR to Base rate in IDBI bank”

  1. ashalanshu says:

    Dear Vluday, thanks for the update.

    Thanks

    Ashal

  2. vluday says:

    Hi…

    First of all.. Sorry for delay!

    I recently got the account statement and interest certificate from bank.
    I have confirmed that the bank (UBI) hasn’t charged me for conversion.

    Absolutely no charges 🙂

    Uday.

  3. ashalanshu says:

    Dear Rajamani, I think IDBI people are not telling you the full story. The conversion from PLR to Base rate ‘ll be free of cost but 0.5% fee is to be paid by you to get the new rate of interest (lower spread than your existing one). If you are still in doubt regarding my reply, please ask IDBI people to clarify the same.

    Thanks

    Ashal

  4. vluday says:

    Hi,

    I have home loan with Union Bank of India since 2006. Last month, when I visited bank for statement, the officer suggested me to convert BPLR to Base Rate for lower interest rates.

    I had to sign 2 stamped application along with my guarantors; the officer didn’t mentioned any charges for the conversion. As of now, I haven’t received statement with new interest rate effect. I will re-check with bank regarding any charges today, and will let you know exactly.

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