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POSTED BY ON January 4, 2014 3:45 pm COMMENTS (2)
Currently my home loan is with ICICI bank at interest of 10.75% . I am planning to take BT to SBI at interest rate 0f 10.30. with max gain and OD facility. I am gaining less benefits as rate of interest is not difference between banks and I have expenses around 21100Rs. what is your suggestion as expert. also I have option of HDFC having interest rate 10.25 no other charges, processing fees nil. please give your suggestion.
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Dear Swapnil, please continue with ICICI as difference is insignificant.
Thanks
Ashal
Dear Swapnil,
Balance transfers are advisable if you have an interest rate differential of atleast 1%.
You would have to evaluate both the options depending on the balance tenure of the loan and any goals set by you for the loan term.
In case of SBI Maxgain, it being an overdraft account provides you with the flexibility to park and withdraw surplus funds which might be beneficial in the long run. But here you would have to bear in mind the expenses of Rs.21,100 involved.
In case of HDFC, the absence of any additional expenses is good but again since it is not an Overdraft account, there is an absence of flexibility of parking and withdrawing funds.
Regards,
Credexpert
http://www.credexpert.in