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POSTED BY ON July 19, 2013 1:42 pm COMMENTS (4)
Hi,
Thanks for the wonderful blog. It had cleared lot of doubts and questions.
I have also have one question regarding interest rate.
I have sbi max gain loan account. My current interest rate is 10.7%. My total loan amount is 24 lakhs. I visited my branch last saturday and asked them if they can lower my interest rate. They said that it can be done but i need to pay 0.56% of total outstanding to them as charges and after that my interest rate will be made 9.95% (i.e. 0.75% less than 10.7%).
Here is my account snapshot:-
Book Balance -21,62,220.00
Available Balance 1,69,053.00
Limit 23,31,273.00
Uncleared balance 0.00
Drawing Power 23,31,273.00
Currency INR
Rate of Interest (% p.a.) 10.7%
So as per SBI, i need to pay them 12108/- to make interest rate 9.95%.
My question is it worth doing it? Will it save money for me? Right now i pay total emi of around 24k and from that around 19k is interest (this is what i see on my netbanking under “DEBIT INTEREST).
Manish, please provide your suggesions.
Thanks and Regards,
Anirudha
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one correction.. it is 0.56% of your drawing power. You will have to pay it as charges for reducing your interest rate
Thanks Mohit for the reply!!
My full emi started on August’11 and got possession on March’13.
The bank employee was not very much eager to tell me the details. She said people are paying 12% -13% interest so you should be ok with 10.7%. I asked them about loan amortization schedule and look on their face was “what is that? we don’t provide any such thing” 🙂
I was sceptical about how much it will save me on the long run. I will go for this. In case SBI decide to hike rates then in that case it will be beneficial also since it will applicable on 9.95% and not on current 10.7%.
Yeah, this is the biggest issue with PSU banks. Their employees think that they knows everything and as a customer if you ask something they will give expression as we did some crime. Anyways we can not do anything in this regards.
Anirudha, if you opt for this you will save almost 15k interest in first year so there is no much gain in first year but from 2nd year on-wards it will become beneficial. I think you should opt for this.