Switching to base rate with new terms IDBI

POSTED BY S K Rahman ON April 19, 2012 9:01 pm COMMENTS (2)

Hi,

Old story kind off. New rates vs old rates on Home loan. I would like to ask forum member have anybody success with reducing the rates with IDBI bank?
My story. I was on PLR and now my rates are 12.25%. New customer are getting it at 10.75.
I asked bank to switch me to base rate with new terms because RBI notification also published in there website.

However bank refuses they say will switch to base rate but no reducing rates.

www.idbi.com/pdf/NoticeforSwitchOvertoBaseRate.pdf

2 replies on this article “Switching to base rate with new terms IDBI”

  1. Dear S K Rahman, First of all please ask IDBI to switch you to a lower rate of 10.75 or 11% although linked with PLR. This switching ‘ll cost you a fee. Normally 0.5 to 1% of the outstanding principal amount + Service Tax (12.36) there on.

    Once your loan rate is reduced although linked with PLR, now only ask your bank to link it with base rate.

    Please do note, once your loan rate is lower down although linked with PLR, conversion to base rate ‘ll not invite any fee as it’s dictated by RBI for a free change over.

    Thanks

    Ashal

  2. couple of ground work you need to do. Tell the bank to reduce the rates for you or you would shift to other bank.

    check out how much you will shell out for take over vs paying IDBI to reduce it to the new rates. Talk to the manager directly.

    keep your eyes open which banks are willing to take over.

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