I took a max gain home loan account in SBI for 30L in Mar’09(teaser loan). The ROI for the first 3 years is 8.5% which is getting over by Mar’13 after which i will have to pay a higher ROI.I have the following questions
1.I beleive the interest rate after 3 years starting Apr’13 would be >11% (2.75% less than the current SBAR as per the sanction letter),I found response in this thread that i can get the ROI convereted to existing rate which is 10% by paying a conversion fee of 0.57% on outstanding. I am not sure what does outstanding mean here in case of max gain account.My loan amount is 30L and i have deposited around 13L in the OD account and hence paying interest only for 17L currently. Now if the outstanding in this case is 17L, then is it ok if i deposit another 10 lakhs from other sources just to reduce the conversion fee. Once the conversion is done, i can take back the 10L from my OD account ? Please help me understand this
2. Also, once the conversion is done, if there is subsequent reduction in ROI in 2013, will the ROI be applicable for me as well. I beleive when the ROI comes down, only new applicants are benefited and not old customers. So if this is the case, should the old customer move to the new reduced ROI (which is expected to happen in near future) everytime the ROI comes down by paying conversion fee ?
3.The first disbursement of 20L was done on 23-Feb’10 and the final one on 24th-May’10. So if the ROI of 8.5% is applicable for 3 years after which ROI will be 11%, how will the ROI be calculated for 20L and 10L as the amounts were disbursed on different dates ?
How can i get to know when ROI change (from 8.5% for 3 years to 11% starting 3rd year) at the beginning of the month so that i can place a request for conversion as i don’t want to end up moving to current ROI (9.75% after conversion) which is higher than 8.5% that am paying currently before the ROI takes effect (11%) ?