Switch to Home loan to different bank or reduce the Interest rate from the current lender ??

POSTED BY rahul5211 ON January 14, 2015 7:53 pm COMMENTS (2)

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

2 replies on this article “Switch to Home loan to different bank or reduce the Interest rate from the current lender ??”

  1. Raja says:

    1% is ridiculous. ICICI charges some 3500-4000 Rs. for resetting the loan ROI. I suggest shift your home loan to a bank like HDFC, SBI etc. You may spend 15-20K for the shifting, but transparency will be more than LIC HFL

    1. Thanks for sharing that !

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today