Dear at,
I have taken home loan of Rs. 44 lacs from HDFC in March’09 and at present principle balance is ~33 lacs and present interest rate of 10.75%. I heard of SBI maxGain benefit and like to tansfer home loan from HDFC to SBI MaxGain. I have two questions.
1. Is it good idea to first reduce the present balance amount from ~33 lacs to below 30 lacs (by doing prepayment) to get benefit of tax interest (I heard above 30 lacs interest rate is 10.25 while below 30 lacs is 10%).
2. If I transfer my 33 lacs now and when principle goes below 30 lacs (after say 10-12months)..can interest rate will automatically reduceto 10%.
3. As my all property documents with HDFC…how can I proceed with SBI.
Regards
Dinesh