Hi all ,

This is my very first post, so please excuse the typos. I have taken a house loan of 41.5 lac from LIC in April 2012 with a rate of interest as 10.4 for 10 years. floating. The rate of interest was 10.4 just for 3 months and later it got increased. Its been more than 2 years i am paying my EMI regularly. The Rate of interest currently is 11.75, which is very High compare to what presently other banks are offering.

I contacted the LIC HFL and ask for some solution to reduce the rate of interest. They suggested me to pay 1% amount , so that my loan gets re-written and I get a revised interest rate i.e. 10.9. My current outstanding principal amount is around 35 lac , so the 1 % amount is around 40 thousand. I had read some forums and it was mentioned that if you have been paying the loan for 2-3 years its expensive to switch the loan to another bank.

So the real question is do get my interest rate reduced by the LIC HFL or should I get my loan transferred to another bank ?

Let me know which option is best to save my hard earned money.

Regards,

Rahul Gupta