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POSTED BY ON November 27, 2012 6:31 pm COMMENTS (3)
Hi,
my current principal amount is -6.74 lakhs
current interest rate is – 14%
total term left is -4 years and 4 months
emi amount is- 17154 rs/month
bank-standard chartered
loan type is -floating.
Current state is i can make any amount as pre payment without being levied any charges.
I have raised a complaint and the bank had given me an option of reducing my interest rate to 10.5 % for a period of 2 years by paying an amount of 3000 rs to the bank.
terms & conditions are – i can make a prepayment of only 25% of the outstanding amount in one calender year.
My question is how good this option is?
i am pretty weak at calculations.Could anybody please help?
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Yes in that case its a good option , So just take that in writing that by paying 3,000 and by moving to lower interest rate , your tenure will then come down to 4 yrs only .
It will take atleast two years to complete my tenure with some prepayments.
but to do the prepayment right now i dont have money in hand with me.
I also enquired with the bank that my total tenure is now 4yrs and 4 months.
and i also asked them if the interest rate is 10.5 % for next 2 years what will be my total tenure? and they said it will be 4 years exactly.means 4 months of emi is saved.
is this not a good option?
I think its a good idea to prepay the loan , even if its 25% of the loan amount, the amount you will save in INTEREST will cover that fees of Rs 3,000 . But its quite strange that the bank does not allow you to prepay the full amount . This should not happen .
I would say , go ahead and do it . Do you know how much out of your EMI is interest part and principal part ?