Its good to transfer Home Loan Interest rate from 10.50 % to 10.15 % ? With conversion charges.

POSTED BY sandy_fellow ON December 27, 2014 2:08 pm COMMENTS (3)

I had a Home Loan (floating rate) of Rs. 10 lacs. Starting Interest rate @ 10.15 % then presently Interest rate is @ 10.50 % next reset date is March 2015.

They give me option of transfer from 10.50 % to 10.15 % with conversion charges of approx Rs. 2,800/-. Now what to do, I don’t understand that shall I go with conversion or wait for next reset date ?

3 replies on this article “Its good to transfer Home Loan Interest rate from 10.50 % to 10.15 % ? With conversion charges.”

  1. PxDx says:

    Hi, I’m planning to take a Home loan from HDFC Ltd and presently they are quoting 9.85% Interest rate.

    My query is that in future if the rates increase to say 10.50% and further to 11.00%, my loan interest rate would automatically increase. But if these rates again take a recourse to say 10.25% and further to 9.90% in future, will I have to pay HDFC Ltd processing fees @ 0.5% to bring my Interest rates down to rates at which my loan originally started??

    Please provide valuable input. Thanks in advance.

  2. rsgovar@gmail.com says:

    Please check with your bank, whether they will increase the base rate of your loan interest part?

    Ex: Now you may be paying 10% base rate + 0.5% as floating – Means any given time 10% will be your minimum interest rate.

    after paying conversion charges, this may changed as 10.10% as base rate + 0.05% as floating – Means any given time 10.10% will be your minimum interest rate.

    Hope you understand what I said.

  3. Its always a good idea (well, most of the times) to pay a onetime fees and move to a lower interest rate . Check with the customer care, how much EMI you will benefit from ..

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