But when it comes to financial products, we settle for what is available rather than what is best. This is due to lack of options available and lack of right information.
Did you know that the Home Loan that you took at 10.5% interest last year is now much cheaper! Have you followed up with your bank to lower the rate of interest? And if you have, has the bank actually lowered it?
These are important questions, knowing that most of our monthly take home pay goes into paying EMI’s, any respite on that front should be welcome. We now live in the era of Zero Foreclosure fee for Home loans. You can take advantage of the Zero foreclosure to move your existing Loan to another bank, which gives a better rate of interest.
Reserve Bank today cut the benchmark repo rate by 50 basis points to a 4-1/2-year low of 6.75 %. This is expected to transmission to banks to reduce their lending rates for existing and new borrowers. The big rate cut is expected to bring cheer to millions of consumers who pay home loans EMIs or are looking to take a loan.
However, there is a catch, lenders don’t reduce the rate of interest for existing customers so its better to shift your home loan to another bank / nbfc. There are predatory practices by many banks, which ask you to pay a fee of 0.5% to reduce from 12% to 10.5% ostensibly because rate of interest slabs have gone down. This is particularly unethical as when the rates go up the banks don’t pay you any fee to increase the rate, but ask you a fee when rbi reduces rates. So its better to use the facility of zero loan transfer charges and go to the bank with least cost. For more information you can visit, http://loanadda.com/emi-calculator
Parth Shah | 21-Dec-15
A good brief about home loan transfer. Thank You