POSTED BY August 26, 2012 9:00 pm COMMENTS (3)ON
I had applied for a Home Loan with HDFC.
The first year rate was fixed at X%, second year at Y% and after that (now) it is floating at 12%. I am in the third year on this loan.
Now,I have read about RBI’s abolishment of pre-payment penalty charges for floating rate loans.
1) Does this apply to my kind of home loan?
2) Is this relevant if I switch my home loan from HDFC to SBI. If so, will the pre-payment (settlement) that SBI will pay to HDFC be penalty free?
My current rate on HDFC is 12% floating. SBI is offering 10.4% floating.
If there is any other advice that you would like to give me, please feel free to do so.