Has Anyone Seen Their Home Loan Rate Go Down?

POSTED BY Ram ON March 11, 2013 11:45 pm COMMENTS (7)

I have a home loan from IDBI bank at 11.5%. Ever since the loan started a couple of years ago they have always increased rates. I have never seen them reducing rates when RBI announces a rate cut.

Has anyone seen their bank reduce the rate for their home loan? If so, please tell me which bank it is and maybe it is time to change :).

Thanks,

Ram.

7 replies on this article “Has Anyone Seen Their Home Loan Rate Go Down?”

  1. Dear Manoj, thanks for sharing your personal experience.

    Thanks

    Ashal

    1. Samir says:

      Ram,
      I have also seen my IDBI HomeLoan rates reduced by 0.25% after last reduction 2 months back…I guess…

      Regards
      Samir

  2. Manoj Jha says:

    Dear Ram, I took housing loan from IDBI (2 yrs back) and the rate of interest is floating since then. Whenever, RBI anounces any change, IDBI is also changing (both increasing & decreasing the ROI). My current ROI is 10.5%. That is equal to BR+0.25%. I hope IDBI is following same principle with all loan account holders.

    Pl. Note: Currently, IDBI is offering housing loans at Base Rate only (= BR+0% = 10.25 +0% = 10.25%). This is applicable for new customers only.

    This is FYI., Jha

  3. Dear Ram, let’s understand why your ROI is 11.5%? When your loan was sanctioned it was linked with either PLR or Base rate with a spread. In case of PLR linking, it’s negative spread i.e. PLR – spread = your current ROI.

    For Base rate, it’s a positive spread i.e. Base rate + spread = your current ROI

    Now what you are paying for? You are paying to change this spread from the old one to the new one, which is offered to new customers. So in that sense, it’s a manual process.

    Thanks

    Ashal

    1. Ram says:

      Ashal and Manoj, thank you both.

  4. Dear Ram, please contact your bank i.e. IDBI, pay the conversion fee & bring down your current ROI from 11.5% to the as on date offer. That’s it.

    Thanks

    Ashal

    1. Ram says:

      Ashal, thanks for your reply. Is it a manual process on the part of the borrower to pay conversion fee each time to get the rate reduced?

      Thanks,
      Ram.

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