POSTED BY June 18, 2014 5:29 pm COMMENTS (5)ON
I have taken home loan of Rs 30 Lakhs from SBI for 20 years. This is a loan account but NOT Max gain account. I request reply to the following:
1] Suppose, I have an amount of Rs 2 lakhs which I am ready to pay upfront to SBI corresponding to my loan, then is it advisable to:[A] get the duration of my home loan reduced OR [B] get reduction in the EMI to be paid per month ?
2] Is this type of transaction to be done at the bank branch or SBI RACPC ? Is it done within a day or frequent visits are needed ?
3] Is there any limitation on the number of times such transaction can be done with the bank during loan duration ?
4] Is there any minimum amount, which the bank needs during pre payment ? Example: The bank accepts minimum Rs. 1 Lakh as pre payment or any such condition.
5] Is there any formula through which I can find that if I am pre paying some amount then, the loan duration will be reduced by how many years ?