Hi,

I have taken sbi maxgain home loan in 2011. Arrangement letter provided by bank states that I will be charged 1% above base rate. Usually It is called as spread. Current base rate is 10% and spread is 1%. So effectively I am paying 11% rate of interest rate. (10% base rate + 1% spread). Recently I have received letter from bank which states that I can switch to lower interest by paying 0.56% of outstanding amount and I could enjoy the rate of 10.30% (base rate 10% and 0.30% spread).

So my questions this spread 0.30 will remain for the entire tenure of the loan or only for some period. I am aware that base rate could change in future. But what I want to know is this spread of 0.30% will remain constant throughout the tenure of the loan. Can anybody clarify this?