I took a loan of 35 Lakhs from HDFC on Feb 2013 with interest rate of 10.40% and now it is increased to 10.75% (due to floating rate). With the interest rate increase, additional 8lac were added into my account and extended the EMI for another 1 year period. One of my friend, who is working in LIC said that if I transfer my loan to LIC, he will offer the interest rate 10.10% for next 2 years and afterwards floating will be applicable.
Additionally he needs charge of Rs.5000/- for this transfer of account. Looking 10.75% vs 10.10% interest rates, sounds like a good plan, but i am little confused on this regard. Please help me understand . Thanks a lot for your time.