housing loan switch over

POSTED BY j.r.kota ON October 13, 2012 2:57 pm COMMENTS (4)

I took a housing loan below Rs30.00 from State Bank of Travancore in the year 2006, under floating rate of interest – 2.25% below the SBTPLR. Recently the bank gave me a letter which in effect says if I make a one time payment of 1% on the outstanding balance I can switch over to current card interest rate. My question is what is this current card interest rate scheme? Is it different from the floating rate of interest scheme which I opted at the time of availing the loan? Am I not entitled to the changes in the interest rate under the floating rate scheme? why Should I again opt now and that too for exercising this option Ishould pay 1% one tome switching over fee? Please advice.
j.r.kota

4 replies on this article “housing loan switch over”

  1. Credexpert says:

    Dear Mr. Kota,

    The decision to switch is primarily dependent on what is the floating rate that you are paying currently and how does it compare with ” Current card interest rate scheme “. Assuming that the current rate is favorable, then you should confirm under what circumstances your original floating rate will change (probably mentioned in your loan agreement). If there is a re-set in your interest rate, you should apply to the bank for the same.
    Now a comparison will be more meaningful and the difference between the two rates will tell you whether its worth paying 1% switch over fee.

    Regards,
    Credexpert.

  2. j.r.kota says:

    Dear Sir,
    I was asking the following question?

    I took a housing loan below Rs30.00 from State Bank of Travancore in the year 2006, under floating rate of interest – 2.25% below the SBTPLR. Recently the bank gave me a letter which in effect says if I make a one time payment of 1% on the outstanding balance I can switch over to current card interest rate. My question is what is this current card interest rate scheme? Is it different from the floating rate of interest scheme which I opted at the time of availing the loan? Am I not entitled to the changes in the interest rate under the floating rate scheme? why Should I again opt now and that too for exercising this option Ishould pay 1% one tome switching over fee? Please advice.
    j.r.kota

  3. Credexpert says:

    Dear J.R.Kota,

    You can post your question in the comment section and we can help you out.

    Regards,

    Credexpert.

  4. j.r.kota says:

    where is the question posted

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