SEBI registered Investment advisor (RIA) with Registration number – INA 000000342.
Switching Home Loan to SBI may not be a good option

Home loan transfer

Nikhil is in a dilemma! He is having an outstanding loan of 25 Lakhs from a PSU bank and the current interest rate is 12%. But SBI is now offering loans in the range of 10.25 -10.40%. His bank has not offered a similar rate so far. Nikhil is seriously thinking of switching his loan to SBI to avail the lower interest rate.

Please do a cost benefit analysis before taking a decision like this. Though there is no prepayment penalty on such transfers, there are other costs attached to it.

If your loan is not with SBI

With processing fee capped at 10,000, the current rate of SBI is the best available option now. But wait, your bank also may follow SBI.

If the difference between the new and old rates is very high, you should plan for a loan transfer. Switching makes sense only if the difference in interest is atleast 1 percent. Processing fee can’t be the sole determinant. You have to consider valuation charges, inspection fee, lawyers’ fee, stamp duty etc to get a clear picture and do a cost benefit analysis.

But try to negotiate with your existing lender before taking a decision for loan transfer. You can quote the SBI rate and try for a reduction in rates from existing lender. Many lenders are allowing reduction in interest rates to the existing customers on a case to case basis.  They are even ready to reduce the conversion fee, if your track record is good and if the lender wants to retain you as a customer. But please check the revised tenure of the loan, after the EMI is reduced. The lender can reduce the EMI by adjusting the loan tenure!

If you are nearing the end of the loan tenure, transfer of loan will not help you much, because the interest component in your EMI is very small. You should also seek from banks their re-pricing policy and track record before switching banks. This will help you in taking the correct decision.

If your loan is with SBI

SBI is offering the lower rates to its existing home loan customers, provided they are ready to pay 1% conversion fee. If you migrate to this rate now, you will be eligible to avail the lower rates now as well as the thinner spread of 25-40 basis points over the SBI base rate, which will benefit you throughout the loan term.  This option will beneficial for you if your loan amount is not very high. If your loan amount is high, it is better to wait for other banks to come out with a similar rate. You can opt for a balance transfer at that time and save on conversion fee. But you have to factor in processing fee in the range of 0.25 % to 1% depending on the new lender.

Select banks are offering lower processing fee and reduced interest rates, depending on your credit score. If your loan amount is high and if you are paying more than 10.5%, you must look for a loan transfer.

But consider all other related costs and do a cost benefit analysis before deciding.

363 Comments

  • swati Posted September 18, 2012 4:34 pm

    SBI such a great service provider.. my experience is good with dealing with SBI ..they provide fast services to their customers . i got home through http://www.dialabank.com

  • Nitesh Posted March 3, 2013 9:43 am

    I have a home loan with ICICI Bank with an interest rate of 11.50. I borrowed a loan of 20 lakhs from ICICI, and paid 4 lakhs as down payment. The cost of property was 24 lakhs. The loan was procured in August 2011.

    My house is due for registration in April, where i have to pay 1.4 lakhs for registration.

    As per the advertisements by SBI, SBI is providing home loans at 9.25 interest rates. Should i go for a loan transfer to SBI? Kindly advise.

    • Melvin Joseph Posted March 5, 2013 6:12 pm

      11.5% is very high in the current situation. You may negotiate with your bank first and then think of loan transfer to SBI, if the difference in interest rate is at least 1%.

  • Nitesh Posted March 3, 2013 10:07 am

    I bought a house in August 2011 in Bangalore. Cost of the property was 24 lakhs, i paid 4 lakhs down payment and had taken a home loan for 20 lakhs from ICICI. I received an email recently that have to pay registration to the builder post which i will have possession of the house in 45 days. The details are as below:
    Sale Consideration For Registration As Per Government Guide Line Value : Rs. 15,24,000

    5.65 % of Stamp Duty on Sale Consideration : Rs. 86,110 (DD)

    1 % of Registration Fee on Sale Consideration : Rs. 15,240 (DD)

    DD’s for Stamp Duty and Registration Fee should be drawn separately in favour of :

    The Sub Registrar Sarjapura ( Payable at Bangalore )

    Legal Charges – (Cash) : Rs. 21,000

    Are the above charges justified? Do i need to negotiate with the builder on registration charges? I was expecting upto 90k as registration expenses.

    • Melvin Joseph Posted March 5, 2013 6:10 pm

      Registration rates are decided by the government and is not negotiable.

  • Varun Posted March 9, 2013 9:03 pm

    I just Have received a letter from HDFC Housing Finance that I defaulted on a payment of INR 113. I have all the proofs that I paid them on time and as requested. Would this default hamper my CIBIL rating?? Please suggest and what action Can I take on bank.

    • Melvin Joseph Posted March 11, 2013 1:59 pm

      You have to visit their office with all supporting documents and rectify the error. Otherwise, this can affect your CIBIL rating.

  • Sanjay Posted March 12, 2013 7:26 am

    I have 36 instalments pending with HDFC of Rs 143865.00 per month @ 10.75 on my dual rate home loan which began in March 2010. I ahve not defaulted even once.
    I checked with SBI…at a total cost of 4700/- I can switch to them and they will transfer my loan to 10.1%.
    HDFC says that I can pay conversion fee of Rs 12559 and then get the loan down to 10.4%. They say that by going to SBI I am saving a total of Rs 31243.00 for the entire remaining period and so it is not worth the bother.(EMI@10.4% of Rs 141766 for 37 months with HDFC & @10.1% of Rs 141134 with SBI. So total saving would be (23384.00 minus 4700.00 SBI bank charges)+ Rs 12559.00 HDFC charges for conversion to 10.4%.
    In case I decide to gradually start prepaying and decrease my remaining tenure, I guess even that benefit will reduce..
    Your advice please if it is of any substantial use in such a scenario to change Banks. Thanks

    • Melvin Joseph Posted March 13, 2013 4:39 pm

      Since the difference in interest rate is only 0.65%, Your gain will be limited on transfer. Better to opt for conversion with HDFC. But if the rate is reduced further after the next RBI review, then think of shifting.

      • Sanjay Posted March 19, 2013 10:30 pm

        You really think I should pay the conversion and stay the course with existing loan provider, HDFC , although if I switch to SBI, I will save a total of 31423.00, in case I decide not to prepay and continue with 37 remainder instalments.
        Thanks

    • Babu Rao Posted March 15, 2013 9:44 am

      But, I hope, SBI is offering at 9.9% only. Pl. check their website and also recheck with your local branch.
      Thanks, Babu

  • Sudhir Posted March 12, 2013 2:35 pm

    Hi ,

    I had taken 20.5 lacs HL (For 20yrs tenure) from LICHL. Right now outstanding amount is 17-17.5 lacs. Current ROI is 11.65 & EMI is 18,850 & 17 yrs remaining.

    I need to transfer/move loan to SBI. Also need to decerease yrs to 10-15 yrs.
    Is it beneficial for me? Any other option for reduce EMI with less tenure?

    Please help me & send calculation details on hltransfer2013@gmail.com.

    Thanks a lot in advance..:)

    • Melvin Joseph Posted March 13, 2013 4:27 pm

      Your current rate of 11.65% is on the higher side. SBI offering around 10% only.You may first try to negotiate with LICHFL and if they are not reducing the interest rate, you may opt for a balance transfer to SBI.

      • Ankit Thakrar Posted November 27, 2013 7:33 pm

        If i do a loan transfer from LIC to any other Bank are there any charges involved for transfer as i have read that as per new rule by RBI there will be no pre payment charges.

        • Melvin Joseph Posted December 6, 2013 11:34 am

          There is no prepayment charges. But there can be charges towards legal, valuation and processing fee etc.

  • sandip Posted March 13, 2013 8:52 pm

    I have HDFC loan of ammount 23 Lac, in June 2011 & till today I am regular in EMI. My current IR is 10.75% & balance loan is @ 18 Lac.Now SBI is offering a IR at 9.75%.Shall I think for transfer?

    • Melvin Joseph Posted March 23, 2013 4:29 pm

      Sure, You can save good amount in the full term.

    • vinod chawla Posted July 2, 2013 10:53 pm

      yes you can transfer it to any other bank it will benificial for u.. i ll offer u a rate 10.25 and u can take top up amount also and will dsbure your loan in 7 days

  • Babu Rao Posted March 15, 2013 10:19 am

    Dear Sir, I have a housing loan with IDBI with ROI @ 10.5%. Current outstanding balance in Rs15,80,000/-. EMI remaining is for 130 months. SBI is offering @ 9.95%. EMI calc shows a saving of Rs.6000/- per annum. This translates to about Rs. 65,000/- in total tenure.
    Processing fee & legal for transfer is only Rs. 2000/-
    Kindly give your advise whether I should change the Bank or shall remain with IDBI. Thanks, Babu

    • Melvin Joseph Posted March 23, 2013 4:24 pm

      If the charges for transfer is 2000 only, you can plan for switch. But ensure that your CIBIL score is good, before applying to SBI.

  • Anshul Posted March 19, 2013 1:02 pm

    Hi,
    I have HDFC home loan of 25 L @10.5 % interest rate. Its veing 1 yr that I took loan. I am thinking to switch it to SBI after seeing their adv. of 9.25 % interest rate. Please suggest what should I do in such case. How much I can negotiate with HDFC on this ? and would SBI preferrable @ 9.25 % ROI ?

    • Melvin Joseph Posted March 23, 2013 4:20 pm

      If you can negotiate with HDFC and reduce it almost nearer to SBI rate, continue with HDFC. But if there is a reduction of atleast 1%, then switch.

  • sheetal kabadi Posted March 19, 2013 3:42 pm

    i have taken 13.50 lacs HL (For 20yrs tenure) from GIC in the month of March 2013. with 12.50% ROI and my EMI is 15000/-
    I need to transfer the loan from GIC to SBI. can i transfer immediately before 6 months ?

    • Melvin Joseph Posted March 23, 2013 4:17 pm

      Please see the loan documents to confirm whether there is a penalty for transfer within a minimum period.Otherwise, you can switch.

  • Ramu Posted March 20, 2013 10:40 am

    HI,
    i am having home loan of 31 lacks with @10.7% fixed for 3 years with LICHFL.please can you suggest is it worth full to transfer the loan from LICHFL to SBI.

    please help me on this.

    • Melvin Joseph Posted March 23, 2013 4:14 pm

      I think, you can wait for the fixed term to be over. Then decide as per the market rate of interest at that time.If you get at least 1 % reduction from somebody, think of switching.

  • selvaraj Posted March 21, 2013 6:46 am

    Hi,

    I have a housing loan with HDFC and my outstanding balance is 34 L and tenure is 15.2 years, current ROI is 10.4%. If I switch over to SBI i will get an interest rate of 10.1%. The total conversion fees from SBI end is 1000 + 5000 + 20000 = 26000 in total. Should I go for this switching. Can u plz advice.

    Thanks

    • Melvin Joseph Posted March 23, 2013 4:12 pm

      switching for a reduction of 0.3% will not be a good idea.

  • Yogesh Raghu Karwande Posted March 23, 2013 11:52 am

    In Oct-2010 i taken a home loan of Rs.850000 now-a-day the interest rate is 11.5%. my loan is for 20 years and premium is near about 8500.
    please suggest me is it profitable to switch my home loan to sbi.

    • Melvin Joseph Posted March 23, 2013 4:10 pm

      yes, now you can switch the loan to SBI. The interest rate is less than 10%. But before that ensure that your CIBIL score is good and you will get the loan from SBI.

  • Jayashree Posted March 28, 2013 4:10 pm

    1 year ago i have taken house from SBH with 10.25%.Is it worth to change this to SBI

    • Melvin Joseph Posted March 30, 2013 9:44 am

      I don’t think, you will benefit much. 10.25% is a decent rate. But you follow up with SBH and try to reduce it further.

  • Sreeram Posted March 29, 2013 7:44 am

    I have home loan in HDFC 42 Lakh and paid last 14 months interest rate 10.75% per Monthly EMI 42642 without any dues.Noticed HDFC currently increasing interest rates from 10.40% to 10.65% from April2013 onwards.

    Can you advice on which is the best option whether stay in HDFC or transfer my loan to SBI.

    • Melvin Joseph Posted March 30, 2013 9:43 am

      Your interest rate mentioned here is 10.75%. Even HDFC is reducing the rates now. But if you get a decent reduction and if SBI is not having other charges in taking over your loan, you may do so.

  • Pankaj Kumar Posted April 2, 2013 1:40 pm

    I had taken a home loan of 22 lakh in 2008 from LICHFL. Current interest rate is 11.9% and remaining tenure is 15 years.
    I got a call from Deal4loana.com. They are offering a balance transfer from SBI @9.95% and processing fee of 1800/-. Is it good to transfer the loan in this situation? please advise.
    Is it better to go through deals4loan.com or directly to go through SBI? Is the interest rate and processing fee offered are correct?

    • Melvin Joseph Posted April 2, 2013 3:51 pm

      I suggest you approach the nearest SBI branch with all papers. If your credit rating is good, there will not be any problem in getting the transfer to SBI. The interest rate of 11.9% is on the higher side. Now you may get it around 10%. There will be huge savings in interest for the next 15 years, if you go for loan transfer.

    • rajesh Posted September 19, 2013 12:08 am

      call 9810891826

  • himanshu agarwal Posted April 2, 2013 8:18 pm

    i have taken a home loan of 25 lakhs from sbi in there 3 year fixed interest scheme @8% and 8.5% in 2009. now the fixed period is elapsed and it seems that current effective rate of interest in 11.7%. please suggest what i can do.

    • Melvin Joseph Posted April 5, 2013 5:40 pm

      You can request SBI to convert your loan to a floating rate loan by paying the conversion fee. If they are not ready, transfer the loan to other lenders

  • himanshu agarwal Posted April 2, 2013 8:31 pm

    i have taken home loan of 25l from sbi under there my home campaign where interest is fixed for initial 3 years. now the fixed period is complete and the neweffective interest applicable for my loan acc is 11.7% which seems to be very high. please suggest what i should do.

    • Melvin Joseph Posted April 5, 2013 5:39 pm

      You can request SBI to convert your loan to a floating rate loan by paying the conversion fee. If they are not ready, transfer the loan to other lenders.

  • girish Posted April 2, 2013 9:21 pm

    can personal load also be transferred to SBI i have to 2 personal for 2 different banks need advice on it is it possible

    • Melvin Joseph Posted April 5, 2013 5:38 pm

      It will not be that attractive as home loan. The difference in interest rates on personal loans are almost similar.

  • Shiv Posted April 3, 2013 8:06 pm

    Hi Joseph,

    I took a home loan from SBI for 35.6L with their 3 years prefixed rates of 8 and 8.5%. Now after the end of this 3 yr tenure, the rate has increased to 11.75%. my outstanding loan amount is 16.5L.
    What is the best option to minimize the interest rate outflow. I plan to close my loan in next 3 years timeframe.

    Regards,
    Shiv

    • Melvin Joseph Posted April 5, 2013 5:34 pm

      You may request SBI to convert your loan to a floating rate loan by paying a small conversion fee. Then you will also get the benefit of lower rates applicable to the new loan applicants.You will get it at around 10%.

    • vinod chawla Posted July 2, 2013 10:56 pm

      you go for transfer it to any other bank it will benificial for u.. i ll offer u a rate 10.25 and u can take top up amount also and will dsbure your loan in 7 days

      contact me 9716666626
      vinod chawla

  • Saravanan Posted April 3, 2013 10:51 pm

    Dear Sir,

    I have availed Rs 2703604 of home loan in HDFC with an interest rate for 10.75 in 2010 for an tenture of 240 months.

    And after RBI revised the interest rates, HDFC reduced the interest rate for me from 10.75% to 10.65% which stated that it will be applicable from April 2013.

    But in Jan 2013, i have paid Rs 7515 as a conversion fee to reduce the interest rate from 10.65% to 10.15%. So from now onwards my interest rate is 10.15%. And i didnt reduce my EMI instead i have reduced the tenture from 232 months to 207 months.

    Below are few clarifications needs your guidence.

    1. Is this right way of selecting an option of reducing the tenture instead of EMI amount? Because later some time if RBI revises the interest rate, will the tenture period will be increased?

    2. Now if i wanted to transfer it to SBI, will it be useful for me? might be i will be benefited if i get an interest rate of atleast 9.50%. Please provide your valuable inputs.

    Thanks
    Saravanan.

    • Melvin Joseph Posted April 5, 2013 5:32 pm

      Yes, if you can manage the same EMI, it is better to reduce the term and clear the loan early. If the interest rate is increased in future, you have the option of either paying the higher EMI or increase the tenure. There also, if you can manage higher EMI, it will be better for you.
      I don’t think SBI will offer 9.5%, it will be around 10% now. After May, if RBI reduces the rate further, you can try for a transfer. But before that negotiate with HDFC, they may also reduce the rate.

    • vinod chawla Posted July 2, 2013 10:57 pm

      hi
      i think you should go for transfer it to any other bank it will beneficial for u.. i ll offer u a rate 10.25 and u can take top up amount also and will disburse your loan in 7 days

      9716666626
      vinod chawla

  • Omar Mukhtar Posted April 6, 2013 6:12 pm

    I availed a loan of Rs 26 lacs from J&K Bank. The disbursement of the loan was made on 29th july 2012. After three months, I came to know that my loan account is charged @14.5, but the RoI in vogue w.e.f 25 July 2012 (when the loan amount was disbursed to me was 11.5% only). After contacting the bank, I was told that the my loan was sanctioned on 22 July 2012 and not on 29 July 2012 so the RoI will be 14.5% instead of 11.5%…. I fail to understand if the loan amount was disbursed on 29 July 2012, how can the bank charge me with 14.5%…. Bank authorities are reluctant to change my RoI from 14.5% to 11.5% (The RoI at present are further slashed to 10.25%) but I am still charged @14.5%, Kindly advise me what do I do to get my RoI fixed at current value.

    • Melvin Joseph Posted April 8, 2013 6:49 pm

      You can try for balance transfer to SBI. At present the market rate is around 10.5% only. You will stand to benefit a lot in the long run.

    • vinod chawla Posted July 2, 2013 10:58 pm

      hi
      you should go for transfer it to any other bank it will beneficial for u.. i ll offer u a rate 10.25 and u can take top up amount also and will disburse your loan in 7 days

      9716666626
      vinod chawla

  • pRITI Posted April 9, 2013 3:00 pm

    HI,

    I have HDFC home lean of 27Lacs taken in March 2009. Curretnt intrest rate after paying 12500 Rs is 10.5.

    I am thinking to transfer loan to SBI since 16 years to and on current EMI i think i will save 4-5K month.

    Please advice.

    • Melvin Joseph Posted April 10, 2013 5:35 pm

      You wait till May to see further reduction in rates. SBI will offer now at around 10.25%. This way your EMI will reduce by around 425/- only. Try to get atleast a reduction of 0.75% to make the transfer attractive.

  • Rahul Gupta Posted April 9, 2013 7:42 pm

    Hi I have an outstanding with AXIS BANK for Rs. 13 lakhs outstanding at 11.25%, They tell they can make it 11% if i am willing to pat 1% of outstanding means for 13 lakhs. What should I do. I am repaying 45k per month as EMI and so will finish the Home loan in 3 Years. Kindly guide.

    • Melvin Joseph Posted April 10, 2013 5:31 pm

      If you are planning to repay the total loan in the next 3 years, it is not recommended to pay 1% and reduce the rate to 11%.

  • Rahul Gupta Posted April 10, 2013 8:09 pm

    Hi I have an outstanding with AXIS BANK for Rs. 13 lakhs outstanding at 11.25%, They tell they can make it 11% if i am willing to pat 1% of outstanding means for 13 lakhs. What should I do. I am repaying 45k per month as EMI and so will finish the Home loan in 3 Years.

    How about moving to SBI is that recomendable considering the initial costs?

    • vinod chawla Posted July 2, 2013 10:59 pm

      hi
      i think you should go for balance transfer it to any other bank it will beneficial for u.. i ll offer u a rate 10.25 and u can take top up amount also and will disburse your loan in 7 days

      9716666626
      vinod chawla

  • Sudarsan Posted April 11, 2013 3:19 pm

    Hi, I have a home loan of 20L in LICHFL. I have paid for 7 months. My rate of Interest is 10.7% fixed for 3 years. The Homeloan is for 20 years.

    * Pls suggest me if I can transfer my Home loan to HDFC as they tel me there is no charges for transfer of home loan, incase their ROI is less than 10.7%.

    *If not pls suggest if I can transfer to any other banks.

    • Melvin Joseph Posted April 13, 2013 12:16 pm

      SBI is offering better rates now. You may get it around 10.25%. I suggest you wait for another month to see the chance of further reduction. Also negotiate with LIC also for reduction. If you get a reduction of atleast 0.75%, then switch. Also ensure additional charges like proicessing fee, legal fee, engineers fee etc. SBI loan will be more transparent.

      • Sudarsan Posted April 16, 2013 11:13 am

        Thanks for the Response. I would do as u said..

  • Karthik Posted April 13, 2013 2:47 pm

    Hi Melvin, Is there any bank which provides internet banking facility for loan prepayment process? With LICHFL, no such facility is available. Is it availablewith SBI?

    • Melvin Joseph Posted April 13, 2013 3:44 pm

      Yes, banks allow this facility.

  • mahesh thakur Posted April 13, 2013 11:26 pm

    Hi I have an outstanding with AXIS BANK for Rs. 14 lakhs outstanding at 11.25%, They tell they can make it 11% if i am willing to pat 0.5% or 10k whichever is higher of outstanding means for 13 lakhs. What should I do. I am repaying 45k per month as EMI and so will finish the Home loan in 3 Years.
    How about moving to SBI is that recomendable considering the initial costs?

    • Melvin Joseph Posted April 18, 2013 6:36 pm

      If you are planning to pre close it in 3 years, switching may not be a good option.

      • mahesh thakur Posted April 20, 2013 10:03 pm

        WHat if I make it to 6 years will moving to SBI be helpful?

  • Abhishek Posted April 16, 2013 10:15 am

    Hi,

    I have taken loan from DHFL at 11.25% for a tenure of 20 years in August 2011, EMI is 21951. There are no Loan transfer charges neither have i defaulted till date. I wanted to know if it will be a sound option to transfer my loan to SBI considering the difference in rate.

    Please advise.

    Thanks
    Abhishek

    • Melvin Joseph Posted April 18, 2013 6:33 pm

      Yes, You will get a reduction of around 1% in the deal. In the next 20 years, you will be paying around 31.76 Lakhs as interest if it remain at 11.25%. But, if you get it at 10.25%, you will be paying around 28.36 Lakhs as interest. There is a savings of 3.4 lakhs in interest.

  • Sanjay Posted April 18, 2013 4:46 pm

    Hi Melvin

    We had taken a loan for 22 Lakh from DHFL in June 2011. Current ROI is 11.5%, outstanding amount is 12.5 Lakh with a remaining tenure of 7 years. We intend to prepay entire loan in next 4 years. We have kept the EMI constant at 25k while tenure keeps reducing as and when we do prepayments….do u think this approach is right?

    Given above facts, Would you recommend for shifting loan to SBI or any other bank offering lower interest rates?

    Thanks and Regards

    • Melvin Joseph Posted April 18, 2013 6:23 pm

      Yes, It is better to keep the EMI fixed and reduce the tenure, when you do the prepayments.
      If you shift the loan to SBI , you may get an offer of around 10.5% now. If you continue the EMI for the next 7 years, you can save around 55,000 in this deal.But, if you are pre closing fast, the gains will be lesser.You may decide after seeing the May Review of RBI, where there is a chance for further reduction in rates.

  • Vasudev Posted April 21, 2013 8:49 pm

    I have taken home loan for 13 lakes for 20 years. Currently having interest rate of 10.95%. Sbi is offering 9.95% currently. I am paying from last one year. Should I transfer my loan to Sbi?

    • Melvin Joseph Posted April 29, 2013 7:21 pm

      Yes, there is a difference of 1%. You will benefit in the long term.

  • karthik Posted April 22, 2013 10:00 am

    I have taken loan from LICHFL my oustanding amount is 9,47,400 with ROI 11.9%, i want to change to SBI and their ROI is 9.95% and they are asking 22,000 charge as processing..etc, and in LICHFL 2% closing charge is it advicable to change my bank to SBI

    • Melvin Joseph Posted April 29, 2013 7:20 pm

      22,000 is high and I feel it is single premium for a life insurance cover. If you are having other insurance cover, they will not insist on this. SBI home loan is now good because of the lower rates.

  • tej pal Posted April 23, 2013 8:57 am

    I have taken 18 lacs loan from LIC with 10.7 fixed for 3 yrs, since last one year. I want to switch to sbi bcoz sbi providing less than 1%. Could plz let me know what challenges will be there. Also it will be good for me or not. Thanks in advance.

    • Melvin Joseph Posted April 29, 2013 7:18 pm

      SBI is offering 9.95% now and is very transparent.

  • Rakesh Posted April 23, 2013 10:39 am

    I have a 1yr. old home loan from LIC, which I want to transfer to SBI.
    LIC rate: 11.35%
    SBI rate: 9.95%
    Outstanding amt: 28L
    Tenure: 20 yrs. 19 years remaining.
    City: Bangalore
    Registration completed and got possession also.

    I know the processing chg(0.25%), lawyer and valuation charges. Apart from is that any stamp duty/mortgage charges applicable ? If so, how much.

    • Melvin Joseph Posted April 29, 2013 7:16 pm

      You have to visit SBI with all the documents to get clarity on this. But SBI will not have any hidden charges except the life insurance premium, which they may insist.

  • suresh Posted April 23, 2013 2:10 pm

    i had tooken loan amount of 440000 at canara bank @9% now its was high to 11.50. i had tooken loan at 2004 and now 4yrs remaining .i would lik to shift to sbi is it wil be profitable to me?

    • Melvin Joseph Posted May 4, 2013 5:27 pm

      Since the outstanding loan amount and the remaining term (4 years) is is very small, it will not be that attractive now.

  • siva kumar Posted April 23, 2013 5:45 pm

    Hi Melvin

    We had taken a loan for 12 Lakh from LICHF in Nov 2009. Current ROI is 11.9%, outstanding amount is 10.8 Lakh with a remaining tenure of 14 years. Would you recommend for shifting loan to SBI bank for offering lower interest rates?

    Thanks and Regards

    • Melvin Joseph Posted May 4, 2013 5:25 pm

      Yes, if there is no extra charges for shifting, it will be better to shift.

  • Jaydev Posted April 24, 2013 5:36 pm

    I have home loan of Rs. 750000 with 11.25 interest rate. I taken loan in Oct 2010 and now outstanding balance is near by 650000. Is it better to transfer home loan in SBI and what charges i need to pay for this ?

    • Melvin Joseph Posted April 29, 2013 7:09 pm

      You may approach the nearest SBI with all documents to see your eligibility, It is better to switch to SBI now, because they are charging 9.95% only.

  • Dr Amol Sawai Posted April 25, 2013 12:35 pm

    I have availed a Home loan with ICICI bank since Aug 2010 for amount 3886640 for 240 months @ 8.25% and 9.25% for 1st 2 years. As on date April 2013, the Outstanding amount is 3800000 and current ROI is 11.25% and remainig tenure is 264 months.
    The ICICI is ready to reduce the same to 10.5% @ conversion fees of 3500 which will reduce the tensure to 220 months keeping same EMI of 40000.
    SBI is offering @ 10.10%. Would it good advise to switch over to SBI or pay a conversion fees and continue with ICICI. Please also note the total takeover fees charged by SBI would be aprox 35000 which also includes compulsory property insurance.
    Please suggest me ASAP

    • Melvin Joseph Posted April 29, 2013 7:07 pm

      If you can get 10.10% from SBI, without any charges, that will be the best deal. You can go for an online term policy for 38 Lakhs and the premium will be less. If this is not happening, go for the ICICI option.

    • vinod chawla Posted July 2, 2013 11:01 pm

      hi
      i think you should go for transfer it to any other bank it will beneficial for u.. i ll offer u a rate 10.25 p.a also 0.10 processing fee and u can take top up amount also and will disburse your loan in 7 days

      9716666626
      vinod chawla

  • Naresh Posted April 26, 2013 2:39 pm

    Hello All,

    I am having housing loan from SBH and current outstanding amount in Rs. 21 L, remaining term is 17.5 Years, current rate of interest is 11.75%.

    I hav approached SBI for loan balance transfer, but SBI has rejected my application sighting they will not process transferes between associated banks.

    Is it legally accepted, how two banks can have internal agreement? I am wondering whether to take this matter to RBI for further review?

    If both are same banks then they should have same rate of interest.

    I requet all your comment and suggetions on this.

    • Melvin Joseph Posted April 29, 2013 7:03 pm

      I suggest, you give a written request to SBI and if they are still refusing, you may write to RBI or banking ombudsman.

      • Naresh VMK Posted May 2, 2013 4:50 pm

        Thanks Melvin Joseph , I have sent written complaint to SBI Nodal Officer…. I will keep you posted.

        I am reviewing options to Switch from SBH to HDFC , SBH offering converstion of my loan from Base Rate + 1.50 to Base + 0.50 still i would be paying 10.75% which is far high when compared to HDFC 10.15%.

        If i go stick with SBH then i have to pay 1% i.e. (Rs. 21,500), if i approach HDFC expenseds would be Rs. 11,000/- and getting 10.15% rate.

        Please advise.

        • Melvin Joseph Posted May 4, 2013 5:24 pm

          I suggest you wait for a response from the nodal officer.

          • shiddharam Posted March 28, 2015 11:20 pm

            Sir,

            I have home loan of 28.5lks with SBI @10.25% now. i am planning to shift to new sbi interest of 10.15% but i have conversion fee of 17K/-. Can you please tell me whether i hv to switch for lesser ROI or not? is it beneficail?. ans also SBI told that you can’t convert again and again. It will remains same irrespective of SBI increase or decrese the interest. is it true?

            Tenure :25years
            EMI : 26807/-

  • Bhupesh Posted April 26, 2013 3:18 pm

    Hi Sir,
    I was tried loan in LIC last year. But they rejected my loan application. But the LIC person earlier taken processing fees from mine before sanction. Shall i get my processing fees(it already 1 year completed). Please help me sir. help in what are the procedures.
    Thanks in advance.

  • Bhupesh Posted April 26, 2013 3:32 pm

    Hi Sir,
    I took home loan from Sundaram BNP Paribas of 10L. i am taking house from builder. As per builder suggestion i registered firstly land on my name(He said you no need to register after house construction).

    i am paying only interest on my money at 10.7%. i didn’t occupied my house and need to pay 1L more to builder. ay be next month i will occupy my home. please Suggest me shall i convert my home loan to SBI?(my tenure is 10 years).

    Thanks and Regards,
    Bhupesh

    • Melvin Joseph Posted April 29, 2013 7:01 pm

      You will gain around 50,000 in the next 10 years if you switch to SBI at 9.95% interest rate. Please find out any other cost, before switching.

  • sidik.m.a Posted April 27, 2013 8:59 am

    sir , I have already sanctioned a housing loan from S BT Rs. 20 lakhs for 240 months . current int.rate is 10.25. can i transfer this loan to SBI .giv ur valuable advice

    • Melvin Joseph Posted April 29, 2013 6:56 pm

      There is no much benefit in this transfer because the difference in interest rate is very small.

  • Balaji Konar Posted April 28, 2013 12:07 am

    Hi Joseph,

    I took a loan of 2100000 from GIC Housing finance in April 2011 @ 12.5 IR.
    Current Interest rate of GIC : 12.5.
    Outstanding principal : 2028000.
    Default Months : 0

    If i transfer loan to SBI, assuming they will offer me 10% IR would be great for me. But how long will SBI charge me @10% IR. I am worried if after 6 months, SBI starts charging me 12.5%, i again end up in same situation as currently with GIC.

    How long does it take to completely transfer home loan to SBI ?

    Could you please suggest me if it would be wise for me to transfer loan to SBI ?

    • Melvin Joseph Posted April 29, 2013 6:55 pm

      Yes, it will be better to switch your loan to SBI, because you will get a reduction of around 2.5% now.
      The transfer will not be a complicated issue, if your records are fine. You may approach SBI with the documents and ensure your eligibility before doing so. The interest rate will be linked to the base rate of each bank, which they will decide depending on the market rates and many other factors.
      Yes, interest rates can go up later, but that risk is there with all other banks and HFC like GIC housing.

  • Piyush Posted April 28, 2013 5:30 am

    I have an outstanding loan of 24 lakhs with SBI. I took this loan in Nov 2007 for 20 years. SBI offered me the OD Home Loan Account where lender can deposit additional saving to reduce the daily interest on outstanding loan amount to reduce monthly EMI. My current interest rate is 12.75% and SBI is offering one time switch over to lower interest rate of 9.5 % to it’s existing customers by paying 0.56 % of outstanding loan amount. I am looking for a closure in next 4 years so I requested SBI to revise my EMI after reducing my overall term to 10 years but Bank is saying that you don’t have an option to revise your Term. I can’t believe it. Can you advice what should I do in this situation?

    • Melvin Joseph Posted April 29, 2013 6:51 pm

      The customer can reduce the term, if he is ready to pay the revised higher EMI. Anyway, if they are not agreeing to it, you start prepaying the loan, as per your capacity, which also will have the same effect as increasing the EMI.

      • Piyush Posted April 30, 2013 2:55 am

        What you are suggesting is one way of achieving the early closure however this way I will loose more money since major portion of my EMI will still contribute towards the interest. What I am looking for is reduced Term so that major portion should go towards Principal and I need not have to make prepayment.

        Can you suggest if transferring my loan to new Bank with smaller Term will help me if SBI do not agree to reduce the Term?

  • Raghuraman MV Posted April 28, 2013 1:30 pm

    Hi

    I have a HL of 20L from HDFC at 11.75% ROI.Nowm as my whole disbursement is over, I have been told I can pay a conv fee of INR 5000+ST and convert it into 10.15 ROI.However, on their site, (where doing it online n taking a printout doc which needs to be signed and submitted is possible), i find that I have only two options given,Increase the EMI or decrease the tenure.so it automatically changes my tenure fto 149 but my EMI stands at the same prevailing amount(which was applicable with 11.75%)

    First query is does it mean that they would not provide reduction in EMI or is it so just because this is an online option?.Anyways I would be going in person to effect this change

    Second query is, in case,i get reduction with only tenure reduced, would it make economic sense?So,In case of BPLR increase or something in the future, would my interest rates again go up or would there be any change further to my tenure and loan which would offset the payment of this conv. fee?I want to make sure as here tenure only has been reduced(181 to 149 months) with no change in the current EMI rates whatsoever.

    So in case Iam not free to reduce my EMI would it be a prudent decision to pay conv fee and reduce the tenure?.Just also wanted to check is there a possibility they would provide only tenure reduction in place of revising EMI downwards?

    Thanks in advance

    • Melvin Joseph Posted April 29, 2013 6:48 pm

      It will be in your interest, if you reduce the term, while interest rate is reduced. Your actual interest outgo will be less in this option. But be ready for increase in term, in case there is an increase in interest rate in future.
      The other option will be to switch to SBI, where you may get a rate of 9.95% now.
      What ever may be the case, ensure that the loan is linked to the Base Rate of the bank, which is more transparent than the old BPLR.

      • Raghuraman MV Posted May 4, 2013 1:04 pm

        Thanks a lot for your response.I have reduced the loan tenure for now keeping EMI the same, as it can accelerate principal payback from my side.

  • Mahesh Pandit Posted April 29, 2013 12:44 pm

    Hi,

    I have taken loan from IDBI bank for a tenure of 20 years in with variable intrest rate in sept 2011,

    Currently paying EMI is 9453 with intres rate 10%

    is it advisable to Shift my HL to SBI.

    My HL amount is 970000.

    If yes what wil be the amount I have to pay for shifting.

    Please advise.

    Thanks
    Mahesh

    • Melvin Joseph Posted April 29, 2013 6:39 pm

      If the rate of interest is 10% with IDBI, it will not make sense to switch to SBI for 9.95%. But, if there is further reduction in May and later you may consider this option.

      • Mahesh Pandit Posted May 2, 2013 2:18 pm

        Thanks for reply …!

  • Nagarajan Posted April 29, 2013 4:24 pm

    Hi,
    I have a housing loan with HDFC and my outstanding balance is 24 Lacs and tenure is 213 months, current ROI is 11.65%. If I switch over to SBI, I will get an interest rate of 9,95%. And HDFC is offering conversion rate @10.15 for less than 30 Lacs and processing fee is 0.25%. Should I go for this switching or shall I go for the conversion Rate in HDFC itself.
    Can u plz advice.

    • Melvin Joseph Posted April 29, 2013 6:36 pm

      If you are getting 9.95 with SBI, without any other extra expenses like legal fee, processing fee etc, it will be better to switch to SBI. Infact SBI is bit fast in passing on the lower rates to customers.

  • Murthy Posted April 30, 2013 5:55 am

    Hi,

    I’d like to know if I could transfer my house loan from the bank “Can-Fin Homes Limited” to SBI? I’ve not checked or consulted Can-Fin staff to see if they have got such an option.

    My question, would all banks should provide loan transfer? Or is this bank specific? I mean depends on back whether they can provide this to customers or not.

    Please let me know,
    Thanks

    • Melvin Joseph Posted May 2, 2013 11:00 am

      All lenders should provide this facility. but terms and conditions may vary between lenders.

  • Ravi Posted May 2, 2013 9:23 pm

    Hi,
    Builder from which i am buying plot + villa is providing only Indiabull as home loan provider. I don’t want to go IB for whole amount so in case i am taking loan from IB only for plot then will it be possible to take home loan from other bank for constriction (Builder hasn’t approach any other nationalized bank i. e. LIC or SBI).
    Please reply
    Thank you.

  • Paras Posted May 3, 2013 12:48 pm

    Hi,

    I had taken a home loan from LIC which started from this year (Jan 2013). I have taken a home loan of 17 laks for 15 Yrs at interest rate of 10.95% (Fixed for 10 Years). I am planning to switch to SBI (9.95% as of now and may get cheaper after today’s RBI announcement.). Is this advisable? and Can i do it as current loan is fixed for 10 yrs. What could be the other options? Thanks in advance.

    • Melvin Joseph Posted May 4, 2013 5:21 pm

      You have to enquire with LIC whether thy charge anything for the transfer during the first 10 years. If it is not there, it will be better to switch it to SBI at 9.95%. I don’t expect any reduction from SBI after the recent reduction in Repo rate.

  • Arun B Posted May 3, 2013 2:35 pm

    Dear Mr. Joseph,

    Current Loan: LIC from 10th Aug ’11 for Rs. 21,95,000/- for 20 years
    Current EMI: Rs. 22,439/-
    Interest: 10.80%
    Outstanding as on 24th March ’13: Rs. 21,24,446/-

    I’m considering SBI @ 9.95%. Need answers for the following.

    1.) Is it advisable to change to SBI?
    2.) Is there a way to request bank to deduct higher % of principle every month.
    3.) Will there be any closing charge by LIC?

    Thank you.

    • Melvin Joseph Posted May 4, 2013 5:19 pm

      Yes, if you are planning to pay the EMI for the full term, switching to SBI will be a better option.
      Regarding deducting higher percentage of principal, you can do this pay prepayment. There is no prepayment penalty now.
      Regarding closing charges with LIC, you may please enquire at their local office.

  • Bosco Posted May 3, 2013 3:03 pm

    I have a home loan of 850000 with a scheduled bank .My balance outstanding is 650000.My monthly EMI is 8600.Current rate of intrest is 11.5%
    Due to some unforceen expenses because of some tragic ailment and death in the family ,I feel heavily burdened to pay the current EMI of 8600.I have not paid my EMI for the month of April .Can I switchover my loan to SBI to reduce my EMI which will redce my financial burden.

    • Melvin Joseph Posted May 4, 2013 5:15 pm

      Yes, please pay the pending EMIs and then apply for a transfer to SBI. If you apply without clearing the dues, your loan application may not be accepted.All the best.

  • ANANDRAO Posted May 6, 2013 2:08 pm

    I am having HDFC homeloan of 44Lakhs with 10.5% interest rate for 20 years.
    Is it worthwhile if I switch to SBI with interest rate of 10.1%. What benefit i will get?

    • Melvin Joseph Posted May 10, 2013 10:20 am

      if the difference is too small like this,it will not make sense. But after further cuts,do it.

    • vinod chawla Posted July 2, 2013 11:04 pm

      hi
      i think you should go for balance transfer it to any other bank it will beneficial for u.. i ll offer u a rate 10.25% p.a and u can take top up amount also and will disburse your loan in 7 days

      9716666626
      vinod chawla

  • Janardhan Posted May 7, 2013 10:28 am

    I have a LICHFL for 42.86L. The current ROI is 11.36. The tenure is 25yrs and the EMI which I am currently paying is 43039. Could you please advise over transfer feasibility to SBI and any details i need to know to go ahead with the transfer. Will I have any benefits over this?

    • Melvin Joseph Posted May 10, 2013 10:13 am

      Since the difference in interest rates between SBI and LICHFL is now more than 1%, it make sense to transfer the loan to SBI. But first check your CIBIL score to ensure that you will get a better deal from SBI.

    • vinod chawla Posted July 2, 2013 11:05 pm

      hi
      i think you should go for transfer it to any other bank it will beneficial for u.. i ll offer u a rate 10.25%pa and u can take top up amount also and will disburse your loan in 7 days

      9716666626
      vinod chawla

  • Bala Posted May 7, 2013 11:45 am

    I have an Loan with DHFL for 20 lakhs @ 11.75 %. Which I’m planning to transfer to SBI with their current lending rate @9.95%. When I informed DHFL about this, they gave me a conversion rate @10.50% with .50% Processing fee (Outstanding loan amount is 17 Lakhs)

    Should I still go with SBI or should I stay with DHFL ??
    Please advise.

    • Melvin Joseph Posted May 10, 2013 10:11 am

      If you can get the offer of 9.95% from SBI, without any other charges like processing fee, legal fee etc. it will be better. This is because SBI is more transparent in passing on the lower rate benefits to customers.

      • D V RAJESH Posted May 13, 2013 12:10 pm

        Hello Joseph,

        I took home loan for 21Lakhs with LICHFL in may 2010, with fixed ROI of 8.9% for first 3years. By this month, May 2013, 3 years have completed. At present the floating ROI is 11.9% and my outstanding principal is 19.7 Lakhs.

        I have some queries:

        1) Will the increased ROI is applicable to present principal or total 21 Lakhs?

        2) I could observe the ROI is high with LICHFL now, when compared with other banks. Is it clever idea to shift my loan to other banks like SBI?

        3) Is it a good idea to repay about 1-2Lakhs now?

        • Melvin Joseph Posted May 18, 2013 11:33 am

          I can answer this only if I see the loan schedule. You may check up with LIC HFL, they will clarify this.
          If LICHFL is not ready to reduce the interest to the market rate, it makes senses to switch the loan to SBI. They are offering around 10.5% now. Before switching, compare all associated costs.
          Yes, it is better to pre close the loan at the early period of the loan.

  • daisy azad Posted May 10, 2013 5:49 pm

    We have taken home loan of 40Lacs from LICHF on june 2012 with 10.4% rate of interest .But now i got the actual repay stament its quiet verying from provisional.Also for 2013-2014 ROI shown is 11.65.
    LICHF official are not very customer friendly as well.What should i do?

    • Melvin Joseph Posted May 18, 2013 11:36 am

      Get a quotation from SBI and if it is better, switch the loan.

  • saran Posted May 10, 2013 7:04 pm

    I have taken loan in Mar 2012 for Rs 22L @ 11.15 % fixed for the first five year from LICHFL. I have been regular in EMI payment. Now with SBI offering @ 9.95%, should i consider shifting my loan to SBI or wait for the entire fixed rate period (approx 3.5 years more) before taking a decision since there may be prepayment penalities of LIC (due to fixed rate interest) & other charges coupled with charges of SBI for loan processing etc etc. Pse advise with the pros and cons ….Thanks

    • Melvin Joseph Posted May 18, 2013 11:35 am

      You have to see the attached charges from both the parties before taking the decision.

  • Nupur Posted May 11, 2013 12:25 am

    Hi,
    I have taken home loan from Hdfc for 1st 2 years, fixed and then floating. 10.45%
    Currently loan amount is 2200000 lakh is pending and158 months.

    Does it make sense to switch it to sbi with 9.95 percent and 6000 processing fee.
    Cheers, Nupur

    • Melvin Joseph Posted May 18, 2013 11:35 am

      wait for June, you may get better rates for transfer.

  • Amit Raj Posted May 13, 2013 6:20 pm

    I took a loan of 26.5 lakh from SBI in 2009. First 3 years interest rate was 8%, 8.25% and 8.25% and after that it was written as base+2.75%. This year ( 2012-2013 ) , they have charged with 11.7%. Outstanding balance is approx. 24 lakh now. Should I switch to other option ? It seems to be very high.

    Please advise.

    • Melvin Joseph Posted May 18, 2013 11:30 am

      You can change the loan to floating rate loan by paying the conversion fee to SBI. It will be better as of now.

  • abhishek Posted May 16, 2013 10:50 am

    I had taken a homeloan of 32.5 lacs from SBI and currently 29.5 lacs is outstanding. My repayment tenure left is 22 years.
    With current int rate of 12.95 on my loan, shall I get it readjusted in SBI or switch to another bank. What shall be the approx fee I shall be paying to SBI for readjustment internally.

    • Melvin Joseph Posted May 18, 2013 11:26 am

      Normally banks charge 0.5% of the outstanding as fee for conversion. At present SBI is better in terms of pricing.

  • Ketan Posted May 16, 2013 1:18 pm

    My home loan interest rate is 11.25%. Loan amount is 1700000/- and tenure is 15 years. I have taken loan from AXIS Bank.
    Axis bank is demanding Rs. 9000/- to reduce the interest? Can bank ask such amout to reduce ineterest rate?
    What is the interest rate in SBI(Floating)? Is there Such system in SBI also?

    • Melvin Joseph Posted May 18, 2013 11:25 am

      Yes, most banks charge this for conversion into floating rate interest. SBI offers around 10.5 now. wait for a month and try in June. SBI will be more transparent.

  • lade Posted May 19, 2013 8:40 am

    I want to take homeloan
    which bank is better,
    LICHFL-10.25%,
    SBI-9.95%
    but sbi processing time more
    pls suggest which bank is better

    • Melvin Joseph Posted May 25, 2013 6:46 pm

      If you can be bit patient, SBI is better in the long term.

  • Ashish Posted May 21, 2013 4:17 pm

    We had taken floating loan for 28 Lakh from LICHF in Oct 2011 for 20 years. Current ROI is 10.65%, outstanding amount is 27 Lakh with a remaining tenure of 19 years.
    Would you recommend for shifting loan to SBI bank for offering lower interest rates?
    I am working in MNC which is listed with LICHFL for getting extra rebate of .25 %, but they are not giving such as benefit to me and said that this benefit is not eligible for this scheme. Should I go to consumer court or fill the RTI . Please suggest

    Thanks and Regards

    • Melvin Joseph Posted May 25, 2013 6:43 pm

      I suggest you wait for the RBI meeting of June. There is a chance for another 0.25% reduction in Repo rate. After that I suggest you switch the loan to SBI after analysing all associated cost.

  • Barun Posted May 26, 2013 1:27 am

    Hi Melvin,
    I have taken a Home loan from HDFC in April2012 for 25l @ roi 10.4%. Currently seeing advertisements from sbi that they are offering homeloan @ roi 9.95%. I’d save around 700 rupees if I consider roi @ 9.95% (if have the same no of outstanding EMIs).

    Would you suggest to transfer the loan to SBI? or wait for some time for further correction in interest rates or try to negotiate with HDFC if they take a conversion fee and change the roi down a bit from 10.4%.

    Thanks for your time!
    Kind regards,
    Barun

    • Melvin Joseph Posted June 3, 2013 6:21 pm

      Yes, better negotiate with HDFC after RBI June Review meet.

  • Shankar Posted June 3, 2013 12:04 pm

    I have availed Rs. 11700000 of home loan in HDFC with an interest rate for 10.50 % in 2011 for an tenture of 240 months.
    And after RBI revised the interest rates, HDFC reduced the interest rate for me from 10.50% to 10.40% which stated that it will be applicable from April 2013.
    But now to reduce the interest rate from 10.40% to 10.15% , HDFC asking Rs 3225 as a conversion fee to reduce the interest rate from 10.40% to 10.15%. So my interest rate will be 10.15%.
    what should I do Is it better to paid conversion fees of Rs. 3225 or continue with currect ROI.

    • Melvin Joseph Posted June 3, 2013 6:10 pm

      It will be better to pay the conversion fee and get the reduced interest rate.

    • vinod chawla Posted July 2, 2013 11:10 pm

      hi
      i think you should go for transfer it to any other bank it will beneficial for u.. i ll offer u a rate 10.20 % and u can take top up amount also and will disburse your loan in 7 days

      9716666626
      vinod chawla

  • raman Posted June 3, 2013 6:45 pm

    I have a home loan 17 Lakhs with LIC with an interest rate of 10.80 for 21 Years till my retirement..

    As per the advertisements by SBI, SBI is providing home loans at 9.95 interest rates. Should i go for a loan transfer to SBI? Kindly advise.

    What is the procedure how much amount will be paid for take over loan from LIC to SBI.

    Awaiting your reply.

  • raman Posted June 5, 2013 10:36 am

    I am awaiting your reply sir

  • Deendayal chaudhary Posted June 8, 2013 4:14 pm

    sir i have taken loan from hdfc Rs 2900000/ on 15 yr .my preinstalment is 32707 Rs per month .only four instalment pay.i want to pay 1500000 Rs .after that my loan ammount is remaining Rs 1400000/ .then i want to transfer my loan from hdfc to sbi possible .what is the procedure to transfer my loan hdfc to sbi.presently i am paying 10.4percent intrest rate .pl give advice

    Thanks

    deendayal chaudhary

    • Melvin Joseph Posted June 25, 2013 6:03 pm

      You have to approach the nearest SBI after the repayment of 15 Lakhs.

  • Ketan Posted June 9, 2013 11:43 am

    Hi Melvin,
    I have taken a Home loan from Axis in 2008 for 6.0 l @ roi 9.0% and Now the roi is 11.5%. Currently seeing advertisements from sbi that they are offering homeloan @ roi 9.95%. Outstanding amnt is 4.8 l

    Would you suggest to transfer the loan to SBI? or wait for some time for further correction in interest rates or try to negotiate with Axis if they take a conversion fee and change the roi down a bit from 11.5%.?????????

    Thanks for your time!
    Kind regards,

    Ketan

    • Melvin Joseph Posted June 25, 2013 6:01 pm

      You may negotiate with Axis first and then get a quote from SBI. If the remaining term is long, it make sense to transfer.

  • Jai Posted June 11, 2013 9:40 pm

    Hi,

    I have taken loan from LIC HFL for 28Lacs,and currently loan amount remaining is 2638858 .i took loan at 10.75% ,and it started in Nov-2012
    do you think its worth for me to transfer my loan to SBI ,as SBI is providind loan at 9.7 (+.25 base rate).

    Please Suggest

    Thanks in Advance,

    • Melvin Joseph Posted June 25, 2013 5:54 pm

      Since the difference in interest rate is around 1%, you can gain by switching.

  • aravind Posted June 14, 2013 11:53 am

    Hi Melvin,

    I have taken the loan of 30Lakhs @ 10.8 ROI, from LICHFL in Nov 2010.paying the EMI of 30529. Now I am planning to prepay 4Lakhs in july’ 13.

    Is it a good idea to switch the loan to SBI or make prepayment to LICHFL and then think of switching to SBI.

  • Aravind Posted June 14, 2013 6:47 pm

    I have a home loan of 30Lakhs @ 10.8 ROI from LICHFL. The loan was disbursed completely by Nov 2010. I pay an EMI of 30,259.
    Now I am planning to make a prepayment of 4 Lakh in July’ 13.

    My query is:
    Is it the right time to switch to SBI
    or
    Make the prepayment to LICHFL and then think over on the Switch.

    • Melvin Joseph Posted June 25, 2013 5:49 pm

      You have to approach SBI and get the terms to decide which is better. If they charge a small percentage of outstanding for switching, then it make sense to prepay 4 lakhs and then switch. Also study any charges in case of switching.

  • Kapil Jain Posted June 16, 2013 10:36 pm

    Hello,

    I took loan of 1800000 from LICHF for 10 years period After fixed period of 3 years, they have made the floating ROI as 11.9 without any intimation.

    Current Principal balance is 1400000 which i have to pay. Please advise if moving to SBI will help me.

    • Melvin Joseph Posted June 25, 2013 5:47 pm

      You have only 7 years left in this loan. SBI may offer around 1% less now. If there are no extra charges for switching, go for it.

  • prashant Posted June 18, 2013 12:08 am

    I have taken loan of 23.5 lacs from LIC Hsg finance in 2009 at fixed rate of 8.5% for 3 years. Now the floating rate is 12%, where i am paying 24 K per month. When enquired for SBI loan scheme, i would be paying 21 K. Shall i switch over y loan from LIC Hsg Finance to SBI??? Plz suggest..

    • Melvin Joseph Posted June 25, 2013 5:45 pm

      Yes, it will be better if you switch to SBI, because you gain a lot in the long term. But study if there are any charges for switching.

  • ashokkumar prajapati Posted June 21, 2013 2:02 pm

    Hi,
    I have taken HL from SBI for 20L @ of 10.5% in Apr 2012
    As per bank the rate offered to me was base rate(10%) + .5% = 10.5%

    After that in feb 2013 it was decreased to baserate(9.7%) + .25% = 9.95%

    But it was effected to me as baserate (9.7%) + .5% = 10.2%.

    In case of switching to latest int rate (9.95%) i need to pay one time amount of .56% of total outstanding. But this will be one time change which SBI is offering under HL.

    Please let me know whether should i switch to latest rate ?

    • Melvin Joseph Posted June 25, 2013 5:40 pm

      If the bank is ready to offer you base rate +0.25% for the full term of the loan, then it make sense to accept the offer.

  • rupen bhavsar Posted June 22, 2013 11:59 am

    hi.. iam having home loan of hdfc 7.5 lac @10.90 RI now. I have started at 2008 june and my term is 10 yr. Please guide me to cahnge my loan to sbi is worth decision at this decision and cost for this???

    • Melvin Joseph Posted June 25, 2013 5:37 pm

      You have almost completed 50% of the loan term. Your gain will not be great if you switch the loan for the next 5 years. Instead, you can negotiate with HDFC and try to get a reduction in interest rate.

  • Ak Posted June 25, 2013 8:52 am

    I took loan of 7.5 lakh from L1CHF in 2012 JAN for 5 years. It was a 3-years fixed plan @10.7%. I am planning to switch to SBI as they are having lower interest rates. Please advice.

    • Melvin Joseph Posted June 25, 2013 5:35 pm

      If it is a 5 year loan and if the rate is fixed for the first 3 years, there will not be much interest savings by switching the loan to SBI.

  • nagesh sankhe Posted June 25, 2013 1:35 pm

    Hi,

    I have taken loan from DHFL at 11.25% for a tenure of 20 years in November 2011, EMI is 9699. There are no Loan transfer charges neither have i defaulted till date. I wanted to know if it will be a sound option to transfer my loan to SBI considering the difference in rate.

    Please advise.

    Thanks
    Nagesh

    • Melvin Joseph Posted June 25, 2013 5:33 pm

      Yes. If you get around 1% reduction in interest now, it will be better to transfer to SBI. Please see any attached costs before taking the decision.

  • VInayak A Mulgund Posted July 1, 2013 3:14 pm

    Hi Melvin,

    Myself Vinayak from Pune,
    I have purchased a home and for this have taken loan from a NBFC- AU Finance registered at Jaipur.
    To start with the building is built on guntewadi plot system and not NA (thus many nationalized bank rejected my application for loan and thus had to go for NBFC) and now after all the requisite norms were completed such as connection of MSEDL(Maharashtra state electricity and pune municipal corporation water line and other necessary documents, the building is not considered as normal building which is built on NA plots.

    Now i am in great confusion. Because i was not offered loan anywhere and due to personal reason wanted to purchase house on immediate basis, i went ahead with NBFC and thus they have charged me 19% interest rate for tenure of 10 years. Also i am not sure whether its fixed or floating.

    I have started my loan EMI just in month of April 2013 onwards and till date it is deducted every month.

    My straight questions to you is
    1) Am i eligible to transfer to SBI Housing Loan at the rate of 9.95% ?
    2) If yes i can transfer to it immediately with any penalty charges from NBFC? Since i don’t know how will NBFC react since if i get good deal with SBI they (AU Finance) might not accept my transfer application also. And may cite different reasons.

    I request you to guide me on this and

  • Gajanan Desai Posted July 2, 2013 4:06 pm

    I have taken loan of 16 lacs from LIC Hsg finance in 2010 at fixed rate of 8.9% for 3 years. Now the floating rate is 11.67%, where i am paying 16 K per month. When enquired for HDFC loan scheme, They are offering 10.15% floating. Shall i switch over my loan from LIC Hsg Finance to HDFC??? Plz suggest. While transferring
    loan amount LIC can charge any amount for me.

    Why every bank charges more % after some years.
    The current floating % is always differ from existence %,why like that.

    • Melvin Joseph Posted July 10, 2013 11:02 pm

      Your loan is a teaser loan. anyway you can now try to transfer to SBI, which may offer better terms than HDFC.

  • vinod chawla Posted July 2, 2013 11:14 pm

    hi
    i think you should go for transfer it to any other bank it will beneficial for u.. i ll offer u a rate 10.25% pa and u can take top up amount also and will disburse your loan in 7 days

    9716666626
    vinod chawla

  • Vivek Gupta Posted July 4, 2013 11:06 am

    Hi Melvin,

    I have taken a loan of 1700000 from SBH, also i have opted for SBI home loan insurance of rs50000 in the year Jan 2011. I also bought home isurance for rs10,500 (UIIC LTD) from SBH.
    The current ROI for Home loan in SBH is 10.70% which is very high as compare to SBI (9.95%) and ICICI, HDFC (1015%), I would like to switch my HL to SBI or to ICICI , HDFC
    1. I would like to know if i switch my HL from SBH to any other above bank what will happen to my existing home loan insurance of rs50000 and home insurance of rs10500.
    2.Can i switch my HL to SBI as i came to know SBI dont entertain customers from there associate banks.
    3.I am following SBH and SBI ROI since i bought the home loan and i can see SBI ROI is always .75 less then SBH.
    4. Can you suggest what is the best available option with me.

    • Melvin Joseph Posted July 10, 2013 11:00 pm

      They will consider such requests on a case to case basis only. You try again.

  • s m sundaram Posted July 7, 2013 5:34 pm

    Sir,

    I took a HL of 18 lakhs from State Bank of Mysore @ 10.65 ROI in the month of Jan’2013 and my flat is still under construction. Possession would be around Dec’ 2014. As on date, Bank has disbersed 16.80 lakhs to builder. My EMI will start only after possession of flat. Now I am paying interest only every month for loan amount released to date. Now I am 49 and bank has given tenure of 21 yrs repayment period. Kindly clarify the following:

    1. Should I go for transferring HL to SBI as the same offer at 9.95% ?

    2. HL is only 6 months old. Out of 18 lakhs, 16.80 lakhs have been disbersed. Should I go for Full EMI deduction instead of paying only interest? Will bank allow me to pay Full EMI as possession will take another 18 months? Why should I junk huge interest in Pre EMI period? If bank will refuse to allow me to pay Full EMI what are the options left out for me to convince SBM to do so.

    • Melvin Joseph Posted July 10, 2013 10:55 pm

      I doubt whether State bank group will allow this change within this group banks. You can try to pre close the loan out of your savings on a monthly basis now. Try that option.

  • prathisri Posted July 9, 2013 12:23 pm

    We have outstanding Axis bank home loan of 29 lacs @ 11% for 16 yrs.
    Wish to switch to SBI. Is it beneficial?

    • Melvin Joseph Posted July 10, 2013 10:52 pm

      If you can manage to get a 1% reduction in rates without any extra cost, it will be beneficial.

  • Manas Gangopadhyay Posted July 15, 2013 10:24 pm

    I have an existing Home loan of 18.40 Lakhs for 15 years in LICHFL, at a fixed rare of interest 10.95% for first 10 years ,then floating, for next 5 years. Ten months have over, the outstanding loan amount is 18 lakhs. Now is it beficial to me to transfer the loan to SBI ?( when the prepayment charges of LICHFL is 2% of the loan amount + ST)

    • Melvin Joseph Posted July 26, 2013 3:58 pm

      since your rate is fixed rate at 10.95% for the 10 years, it will be better to continue with LICHFL. Paying 2% prepayment charges and switching to 10% may not be that attractive.

  • sunil Posted July 17, 2013 12:57 pm

    I am planning to buy a flat with HL option. Which bank is best option to take loan? please suggest..

    • Melvin Joseph Posted July 26, 2013 3:55 pm

      Though the procedure will be bit complex, SBI will be the better option in the current conditions.

  • manish Posted July 25, 2013 3:38 pm

    Hello Melvin,

    I have taken a HL of 11 lacs for 20 years in 2008 from IDBI@ 10.25% and for past 1 yr or so, I am paying by 12.25% . In these 5+ years, I have almost payed approx. 6lac ( 5lac as interest n 1 lac as the principal) .
    Is it good to me to shift to SBI with lower Int.rates.
    If so, kindly suggest your views.

    • Melvin Joseph Posted July 26, 2013 3:54 pm

      Yes, Try to get an offer of around 10% with SBI. First find out the charges if any for the switching from both the banks. Hope that your CIBIL rating is good.

  • Sreedhar Reddy Posted July 30, 2013 3:29 pm

    I want to transfer my home loan to sbi to get the advantage of maximum gain policy introduced by them. What is ur advice.

    • Melvin Joseph Posted August 6, 2013 6:17 pm

      If the difference in interest rate is atleast 1 %, it makes sense to switch to SBI.Also consider all other charges in connection with switching from both the banks and then decide.

  • Bipin P Posted August 6, 2013 3:59 pm

    Hello Melvin,

    I have availed an education loan of amount 1 lac 92 thousands from BANK OF MAHARASHTRA.I want to switch my repayment to SBI.Will it be possible ?
    Will it be good to switch to SBI ?
    Please give your suggestion.

    • Melvin Joseph Posted August 6, 2013 6:11 pm

      You cannot switch the education loan to SBI like home loan.

    • Melvin Joseph Posted August 24, 2013 10:49 am

      It is not possible in normal situation.

  • R K Sharma Posted August 7, 2013 2:33 pm

    Hi ,

    I had taken 18.92 lacs Home Loan (For 15yrs tenure) from LICHFL. Right now outstanding amount is 10.82 lacs. Current ROI is 11.65 & EMI is 21,168 & 12 yrs remaining. This rate is flotting rate.

    I need to transfer/move loan to Other Bank with lowest interest rate. Also need to decerease yrs to 10 yrs.

    Processing fee willl be 0.5%+service tax (12.36%) of outstanding amount.

    Is some prepayment charges applicable for Balance Transfer in LICHFL?

    Is it beneficial for me? Any other option for reduce EMI with less tenure?

    Please help me & send calculation details on rishisharma85@rediffmail.com

    • Melvin Joseph Posted August 24, 2013 10:47 am

      I suggest SBI floating rate scheme will be better for you.

  • Trivikram Garikapati Posted August 7, 2013 4:04 pm

    Hi, I have taken 17 lakhs loan in May 2010 from LICHFL, my current outstanding amount is 11.72 lakhs and ROI is 11.65%. Is it good for me to move the loan from LICHFL (11.65%) to HDFC (10.5% fixed for 10 yrs). Processing fee of HDFC bank is 0.5% of loan amount.
    Will there be any additional charges?

    • Melvin Joseph Posted August 24, 2013 10:46 am

      I feel SBI may offer better scheme in their floating loan offer.

  • sekar Posted August 11, 2013 12:15 am

    I am planning to take 30 lacs loan (tenure 20 yrs) from LIC Hsg finance with ROF of 10.75% fixed for 10 yrs,there after ROF will be floating.
    is it good scheme ? ROF 10.75 fixed for 10yrs
    is it good to take loan from LIC ?
    Could you please suggest?

    • Melvin Joseph Posted August 24, 2013 10:45 am

      I suggest SBI floating rate loan will be better because of the transparency in pricing.

  • Deepak Posted August 13, 2013 12:44 pm

    Hello,

    I am having 9 Lakhs of outstanding amount on my home loan with ICICI home finance. Current rate of interest is 10.25%.

    Is there any bank where I can switch to get less rate of interest for my home loan.

    Thanks & Regards

    Deepak Singhal

    • Melvin Joseph Posted August 24, 2013 10:43 am

      The rate of 10.25 looks reasonable in the current market conditions.

  • vibhas Posted August 15, 2013 12:55 pm

    Hi , i took HL of 20.4lac with 15 yr tenure from bank of maharashtra in 2012. I hv been paying emi of rs24500 for last 13 months. I feel thats too high. Tody I read bout sbi takeover offer. Any advice ? Thnks in adv.

    • Melvin Joseph Posted August 24, 2013 10:43 am

      it seems, you are paying around 12% interest. You can approach the local SBI and understand the possibility for a transfer after understanding the cost from both the banks.

  • RAM PRAKASH Posted August 18, 2013 1:00 pm

    Last year GIC rate of interest was 10.5% , now from April 2013 GIC increased 12.5%.
    Can they can increase so much without informing.
    Ho much I have to spend to transfer loan from GIC to HDFC ?
    I took loan Apr 2012 for 12 years

    • Melvin Joseph Posted August 24, 2013 10:38 am

      The best option will be to transfer it to SBI. You may have to personally verify the attached charges from both the parties before the transfer. Also, confirm your CIBIL score before that.

  • abhiram Posted September 3, 2013 4:13 pm

    Hi, Any one interested to take housing loan in SBI or Home loan Takeover from Other Banks to SBI in Hyderabad, please E-mail me i will help you for the loan process. My Email-id: abhiram.hlc@gmail.com.

  • Abhijit Kachare Posted September 4, 2013 1:35 pm

    Sir

    I have a comparatively low loan amount of @ Rs 6,30,000 from DHFL. DHFL has interst rate of 12.25 but now with effect from 1 sept 2013 , RPLR has increased by 0.25 %. I have balance of 17 year loan tenure.

    Being a comparatively smaller loan amount can I tranfer it to SBI ? If not, is there any other option ?

    Pls. guide.

    • Melvin Joseph Posted September 21, 2013 4:05 pm

      Yes, you can try to transfer to SBI at a rate of 10.10%, provided your credit rating is good.

  • Rajashekhar Hegde Posted September 10, 2013 4:11 pm

    My outstanding loan in HDFC is Rs 2265619/-. Present ROI is 10.65%, EMI 23645 & balance term is 216. But now SBI offering 9.95% of ROI for 15 years (term 180) with EMI Rs 24277/-. Please advice, whether I can transfer this loan to SBI.

    • Melvin Joseph Posted September 21, 2013 4:05 pm

      You can think of transfer, if the difference in interest is atleast 0.75%. Otherwise, it will not be beneficial.

  • Shweta Posted September 12, 2013 12:09 pm

    Hi, I have a loan from LICHFL with the principal oustanding of INR 44 lacs @11.65% (20 years tenure). Is it advisable to go for SBI @10.10% floating or PNB Fixed ROI of 10.75% for 10 to 15 years? I have heard , that SBI is offering lower rate of 10.10% only to new customers and once to enroll as theri customer, eventually they will increase the ROI to 11.65% to12 % range . Please guide

  • Shweta Posted September 16, 2013 5:28 pm

    Hi, I have a loan from LICHFL with the principal outstanding of INR 44 lacs @11.65% (20 years tenure). Is it advisable to go for SBI @10.10% floating or PNB Fixed ROI of 10.75% for 10 to 15 years? I have heard , that SBI is offering lower rate of 10.10% only to new customers and once to enroll as their customer, eventually they will increase the ROI to 11.65% to 12 % range . Please guide

    • Melvin Joseph Posted September 21, 2013 4:03 pm

      SBI is bit transparent in their deals, though the process may be bit slow. Better to opt for floating rate in the current situation.

  • akthar Posted September 17, 2013 1:20 am

    Hi Sir. I have Hosing lone from Axis bank of 22,80,000RS from November 2011, and EMI of 27,317 :’-( per months , and its for 237 or 240 moths. i need help can i move to other Banks and get benefit? if i can get EMI of 20,000PM or close that i can leave happily 🙂

    • Melvin Joseph Posted September 21, 2013 4:01 pm

      How much is the interest rate in Axis now. You may try the option of SBI at around 10.10 % now.

  • Cynthia Posted September 19, 2013 3:08 pm

    I had taken a loan from Standard Chartered for Rs. 15,00,000/-. 1st instalment being in Jan 2004 at floating rate 7.75%. Since 2011, the interest rate has been 14% and continuing till now. I am paying higher interest as well as my tenure also has been increased by about 120 more months i.e. around 10 more years. I am surprised, is this possible or are they taking me for a ride.

    When I took this up with them, they agreed to reduce the interest with a switch over fee, but this also may change once repricing happens, should I continue or switch over to some other bank and which is the best bank I need to go to now. Kindly help.

    • Melvin Joseph Posted September 21, 2013 3:59 pm

      When there is an increase in interest rate, normally the banks will increase the term so that the customer will not feel the difficulty of higher EMI. But this will increase the term of the loan and your actual interest outgo will be very high. Now you are paying the EMI for almost 9 years. I suggest you find out the outstanding principal from the bank and then decide on it. SBI is a better option in the current conditions. Go for floating rate loan after considering the charges attached from both the banks.

  • Kumar Posted September 21, 2013 6:39 pm

    I have a housing loan with LICHFL
    ROI – 11.9%
    EMI – 29193
    Principal O/S – 2696418
    Loan amount – 2900000
    Tenure – 20 years

    Have completed paying EMIs for 4 years, 16 years to go.

    Does it make sense to switch to SBI, they are offering 10.1% ROI?

    EMI per lakh:-
    Rs. 1081 for 15 years
    Rs. 972 for 20 years

    I guess when they say 15 years means 15 years from loan sanction date of new lender and not loan sanction date by earlier lender right?

  • Kumar Posted September 21, 2013 6:41 pm

    I missed out mentioning that the LICHFL loan is now in floating mode, it was in fixed mode for first 3 years.

  • Rupali Posted September 23, 2013 9:44 am

    I had taken home loan of 33 Lacs from SBI for 3 yrs fixed interest rate (8.25% for 1st yr and 9 % for 2nd and 3rd yr) in 2010. Now they are taking 12% of interest rate and my pending loan amount is 27 lacs.
    Shall i go for new SBI ineterest rate by paying 1%? SBI should charge new interest rate as per 33 lacs (10.10%) or 27 lacs (9.9 %) as they have more interest rate for more than 30 lacs

  • Ramanathan Posted September 25, 2013 8:48 pm

    Hi,

    I have taken a Home Loan of 13.7 lakhs from Axis Bank at 10.75% Interest rate for tenure 10 years for purchase of a flat. I have paid EMI for 15 months. I prepaid some amount The balance principal amount is 9 lakhs,

    I want to switch my Home Loan to another bank like SBT that charges lower interest rate of 10.25% or Canara Bank that charges 9.95% for an increased tenure of 15 years to reduce my EMI.

    The registration of the flat is expected only in 2-3 months eventhough the builder have given me possession of the flat since construction is completed.

    But banks are telling me that I can make a loan switch only on registration.Is there such a rule for loan switching. ?

    Do I need to wait for 2-3 months before making the loan switch?
    Is loan switch advised for me?

    Ramanathan

  • Mohankumar Posted September 28, 2013 10:36 pm

    I bought 41Lakh as Home Loan from HDFC on Dec’12 for 10.50% interest rate for the tenure of 20 yrs. Now the interest rate has been increased by HDFC to 10.65% where as in SBI it is 10.30%.

    Thought of switching my Home Loan to SBI. I read your replies in the comments that you are suggesting to switch only if the difference in interest rate 0.75. In my case the diff is 0.35. Please give your advice on this & could you please explain the calculation behind the interest rate difference.

    Thanks in advance.

    • Melvin Joseph Posted October 31, 2013 6:20 pm

      It is not worth to transfer if the difference is 0.35%.

  • Tharani Joseph Posted September 30, 2013 12:52 pm

    I have HL in Axis Rs. 21 L on Jun 2012…Int Rate 11 % (New increased rate)
    Is it advisable to transfer to SBI Bank with the interest rate of 10.10 % or its ok to continue….

    • Melvin Joseph Posted October 31, 2013 6:19 pm

      Better to transfer to SBI.

  • Deepankar Posted October 4, 2013 10:18 pm

    I have transferred myHL from GIC to HDFC as the difference in terms of interest rate is around 2%.But for take over case,they are asking for foreclosure charges.Is GIC still asking for foreclosure charges,is this true?

    According to me,a sper RBI guidelines,they should not take any foreclosure charges of the loan ,is not it?

    Deepankar

    • Melvin Joseph Posted October 31, 2013 6:17 pm

      if your loan is of fixed interest, then they can ask for the charges.

  • Sankar Posted October 7, 2013 6:38 pm

    Sir,

    I have home loan in AXIS bank – ROI@10.75. I need to take top up for home loan. Would it be better option or should i not consider this.

  • Ramesh Posted October 12, 2013 12:13 am

    Hi Melvin

    I am an NRI and got a HL from SBI when I was in India and the interest rate was 9.75% and not its increased to 12.55%. I wanted to do a loan transfer to other bank or negotiating to reduce the loan. But for both the proecures either to close or recreate the loan with reduced interest rate, I have to come in person.Can you please provide me an option proceed without coming back to India?

    • Melvin Joseph Posted October 31, 2013 6:12 pm

      You can contact SBI through mail/letter and can organise this.

  • Sujeet Golambade Posted October 20, 2013 5:24 pm

    Hello,

    I have home loan of circa 26Lakhs from AXIS bank with current interest rate10.75% (20 years tenure). EMI Rs.30166
    Loan & Full EMI started from Oct 2011. Till Oct 2013 My remaining principle is circa 22Lakhs. SBI is offering 10% rate & 10.5% fixed rate. Would you suggest switching to SBI. I have planned to clear the loan in 5-10 years.
    I have paid
    Principal Component Rs. 133138.00 2011-12
    Interest Component Rs. 51392.00 2011-12
    Principal Component Rs. 169192.00 2012-13
    Interest Component Rs. 192800.00 2012-13

    Would you advice switching to SBI bank or any other bank with less interest rate.
    Thanks in Advance
    -Sujeet

    • Melvin Joseph Posted October 31, 2013 6:07 pm

      If you are planning to clear the loan in 5-10 years, this switch will not be a viable option.

  • Kumar Posted October 26, 2013 5:01 pm

    Hi Sir,

    We are buying 3BHK Flat in Bangalore. As per the builder project is approved by HDFC, Axis bank and SBI. Due to we live outside Bangalore the builder rep suggested to go with Axis Bank or HDFC for speedy process. Both the banks offers 10.5% as Rate of Interest and Processing Fee also same. As we do not have any previous business with Axis bank or HDFC it became bit tough to decide on which one should we seek… and we did check and both the banks are willing to offer loan to our profile…

    1. We are looking for online statement option to view payment history, disbursement and etc.,
    2. As our HL is Floating @ 10.5%, the bank should revise the interest rate as per RBI circulars.
    3. We expect minimum hassle to settle the loan and release the sale deed..

    Please help provide Pros & Cons of the above stated bank and help to choose one among them…

    Thanks in advance…

    • Melvin Joseph Posted October 31, 2013 6:03 pm

      Axis will be better in terms of speed and service.

  • Sylvester Posted October 29, 2013 5:15 pm

    Dear Joseph, I have taken Housing loan (floating) from SBM in April 2012. total amount outstanding 18.2L, present Interest rate is 11.9%. this is far above compare to SBI and Canara Bank. Will it be possible to transfer from SBM to SBI? Kindly suggest. Thank you

    • Melvin Joseph Posted October 31, 2013 6:02 pm

      SBI is not encouraging the transfer within their associate banks.But 11.9 is very high. You try to negotiate for low rate first and then transfer if they are not ready to reduce the rate.

  • sandeep choudhary Posted October 30, 2013 1:21 pm

    Hi, I have a loan from LICHFL with the principal oustanding of INR 16 lacs @10.65% floating (20 years tenure). Is it advisable to go for SBI @10.10% floating ? Please guide

    • Melvin Joseph Posted October 31, 2013 6:00 pm

      If you can manage the transfer without any additional cost, then it is fine.

  • Arun Poal Posted November 5, 2013 5:19 pm

    Hi, I have taken a home loan 2 years back from corporation bank with the principal oustanding of INR 28 lacs @11.25% floating (20 years tenure). Is it advisable to go for SBI @10.10% floating ? Please guide

    • Melvin Joseph Posted December 6, 2013 11:40 am

      Yes, better move to SBI.

  • sandeep choudhary Posted November 13, 2013 9:11 am

    Hi Melvin, I just got statement from LIC HFL that current rate of interest they are charging is 10.75% ( for 20 years, floating). For switching to another bank, they are asking me to pay Rs. 14275 on outstanding loan of Rs. 15.57 Lacs. What is your advice ?

    • Sanjay Posted December 3, 2013 2:43 am

      Mr Joseph your doing excellent job, keep it up

      Regards
      Sanjay

    • Melvin Joseph Posted December 6, 2013 11:39 am

      10.75 is reasonable now. I don’t think you will get a better deal in the current situation.

  • Muruganandh Posted November 14, 2013 11:11 am

    Hi Melvin, I have my current Housing loan with LIC with floating interest rate of 11.75% current outstanding is 24L and planning to a part payment of 2L and then move 22L loan to SBI they are giving at rate of Interest 10.35% They are charging approx 15k for all charges.I have taken loan with tenure for 20 years.I have already paid laon for for 6 Years with EMI 35K and have done 2 (5L) part payments before . Will it benifit if i move my loan to SBI

    • Melvin Joseph Posted December 6, 2013 11:37 am

      Yes, since the difference in interest rate is around 1.4%, it will be better to switch.

  • S.A.Rahiman Posted November 15, 2013 10:39 pm

    Sir,

    I had taken a home loan from LIC which started from ( Aug2012). I have taken a home loan of 317500 laks for 17 Yrs at interest rate of 10.70% (Fixed for 3 Years). I am planning to switch to HDFC Is this advisable? I spoke to LIC Officials they said 2% may detect the closer charges while transferring the lone is it correct ? What could be the other options?

    • Melvin Joseph Posted December 6, 2013 11:36 am

      Please decide after seeing the interest rate after conversion into floating rate loan.

  • Anuradha Mane Posted December 26, 2013 6:00 pm

    I had taken home loan from HDFC bank in 2007 of amount 16 Laks for 20 years at interest rate =10.25 %. However starting from 2012 they are charging interest rate which is more than 13 % & their projeted interest rate from Feb 2014 is 13.15%. I’m planning to switch to SBI which may offer me Interest rate less than 11 %. Could you please let me know processing fees/any miscellenous charges to tranfer loan from HDFC to SBI in such case. or what will be other options?

    • Melvin Joseph Posted January 17, 2014 2:00 pm

      Switching may involve processing fee and valuation fee in some cases. You may contact the local SBI branch and collect details. But before doing so, negotiate with HDFC bank for a lower interest rate.

      • Anuradha Mane Posted January 22, 2014 2:30 pm

        Hi Melvin,
        I had discussion with SBI bank & they are offering me 10.10 % Interest rate as i’m a woman borrower. Also as per their calculation & charges i may need to pay around Rs 15K for Loan transfer.
        In addition to this, I discussed with HDFC bank & now they are offering me Interest rate 10.25% with conversion fee of Rs 4K. Let me know which will be best option for me. But as per HDFC this rate may vary depend on RBI rate changes.
        Will I stay with HDFC or should i switch to SBI?

  • Kannan Posted January 2, 2014 9:01 pm

    Hi Melvin, I have my current Housing loan with LIC with floating interest rate of 11.45% current outstanding is 30L and planning to move to Canara Bank(10%) or Axis Bank(10.25%). Also Planned to take top up loan for personal emergency. Axis Bank is providing Top up loan with 10.25% interest. Will it benefit if I move my loan to Axis or Canara Bank. Kindly Advise me.

    Thanks in Advance.

    • Melvin Joseph Posted January 17, 2014 1:58 pm

      moving out of 11.45% to 10% will definitely benefit you in the long term.

  • Rahul Dhole Posted January 9, 2014 9:02 pm

    Hi ,

    I had taken 22 lacs HL (For 20yrs tenure) from LICHL. Right now outstanding amount is 21.3 lacs. Current ROI is 10.70 & EMI is 21300 & 18 yrs remaining.

    I need to transfer/move loan to SBI. Also need to decrease yrs to 10-15 yrs.
    Is it beneficial for me? Any other option for reduce EMI with less tenure?

    Please help me & send calculation details on dholerahul.10@gmail.com .

    Thanks a lot in advance..:)

    • Melvin Joseph Posted January 17, 2014 1:56 pm

      If you can get a transfer with out any additional expenses, switching to SBI will be a better option.

  • Maulik Posted January 22, 2014 7:20 pm

    Hi Melvin, Thanks for informative post. I have availed loan from HDFC in 2009. I have purchased spread from them in 2011 after paying “spread conversion fee” of 0.5%. In 2014, my rates have again gone up as compared to new borrowers and I am offered the same facility. They never reduce rate but keep on increasing the BPLR and keep on increasing spread for new customers.

    Should I opt for it again or will it make more sense to move another lender so that once for all I avoid new spread buying business of HDFC? Maulik

    • Melvin Joseph Posted January 27, 2014 11:44 am

      It is better to go for a floating rate loan based on Base Rate. BPLR is not transparent compared to Base Rate.

  • M Y Thimmappa Posted January 23, 2014 2:47 pm

    HI,
    I have taken housing loan of Rs.11,22,775/- from DHFL @ interest of 12.50% with EMI amount of Rs.12766/-. Since EMI amount is very high, thinking to switch over my loan with SBI but my property is registered with B-Khatha. Will SBI take over my present loan with this document?

    I have completed 24 month EMI without any default.

    Pls suggest me.

    Thanks and Regards
    Thimmappa

    • Melvin Joseph Posted January 27, 2014 11:42 am

      This issue, you can confirm only from your local SBI office.

  • v prasad Posted January 24, 2014 11:05 pm

    Hi Melvin, I have taken 26 lakhs loan in May 2012 from LICHFL, my current outstanding amount is 24 lakhs and ROI is 10.70% (3 Years fixed). Is it good for me to move the loan from LICHFL (10.75%) to SBI (10.1%). Processing fee of SBI bank is 0.4% of loan amount. Kindly Advise me.

    • Melvin Joseph Posted January 27, 2014 11:41 am

      Going to a more flexible loan from SBI on floating rate will be better for you in the long term. Try to explore the option of processing fee waiver from SBI.

  • Claud Posted January 27, 2014 4:59 pm

    Hello Melvin,

    Thank you for helping the common man by answering queries on this page for over a year. May God Bless You and Your Family.

    I need your advice on my home loan situation. I had taken a home loan from LICHFL in April 2011 for INR 27,25,000/- for 20 years on floating rate of interest. Over the past couple of years I have prepaid some principal and as of today the outstanding is about 21 lacs. My current EMI is around INR 30000/-

    However I see that LIC is fleecing us with a very high rate of interest (12%). In my honest opinion I dont see the interest rates lowering by much atleast for the next 18 months. When I approached LIC asking them if I can pay some conversion charges and move to a fixed rate of interest, they denied me. They said that one cannot move from floating to fixed rate.

    After reading this article I see that one can move from floating to fixed by paying conversion fee. How do I proceed here? Would you advise me to transfer my loan to another bank considering the outstanding loan and interest.

    • Melvin Joseph Posted January 27, 2014 5:34 pm

      Thank you. I suggest you switch to floating rate loan from SBI. This floating rate linked to Base Rate is more transparent in nature.
      In all probability interest rate will fall by April this year and a floating rate loan will be beneficial for long term.You can get an EMI of around 22,000 now for 17 years.even if SBI charges 0.5% processing fee, it will benefit you in the long term

  • Eknath Dhokale Posted January 30, 2014 8:52 pm

    Sir I have taken housing loan, property against loan of Rs.18,60000/- from DHFL @ interest of 10.75% with EMI amount of Rs.187898/-. Since july 2013 EMI amount is very high, thinking to switch over my loan with SBI because I have Defense SalaryPackage Account with SBI Ahmednagar Branch. but my property is registered and CIDCO approved located at New Mumbai Kharghar Area, Will SBI take over my present loan with I had Given Org document to dhfl?
    I have completed 07 month EMI without any default.
    Pls suggest me.
    Thanks and Regards

    • Melvin Joseph Posted February 8, 2014 11:11 am

      You may approach SBI with copy of all the documents to see your eligibility. If you are an account holder with SBI and if the property documents are in order, there may not be any issue in transfer.

  • Rakesh Posted February 22, 2014 6:02 pm

    Sir,
    I have taken home loan from GIC. Now I am planning to transfer my home loan to HDFC as the rate of interest in HDFC is low.
    Few months before I paid some additional amount to GIC to bring down the interest to 11.5%. Now they are saying that I need to pay 2% penalty foreclosure charge as I paid additional amount to bring down the interest. Is it true ? My loan is running for more than 3 years. First one year it was on fixed rate but after that it converted to floating rate.

    As you must be aware with in GIC taking home loan insurance is must. They are saying to pay the outstanding home loan insurance amount too.

    Please suggest!
    Thanks & Regards

    • Melvin Joseph Posted February 24, 2014 11:32 am

      The individual lenders have their own rules in these areas.

  • nishant shah Posted March 8, 2014 10:02 pm

    I have taken 28L home loan from sbi in 2010 on fix interest rate (8%-1st year, 9%-2 years). my current rate of interest is 11.75% and bank is offering currently 10.15%. my outstanding amount is 12 L. Will this be beneficial in next 2-3 years if I think to finish loan ?

    • Melvin Joseph Posted March 19, 2014 11:45 am

      You can pay a conversion fee and convert the loan into a floating rate with SBI. It will be better for you, if you want to continue with EMI. If you are pre closing in 2-3 years, it will not be that beneficial.

  • Aditya Matada Posted April 5, 2014 8:00 am

    Hi Melvin,

    I have taken 53L home loan from SBI in 2011 with the following variants
    1. Base rate (8.50%) + 0.5 for first year
    2. Base rate (9.75%) + 1.25 for the second and third year
    3. Base rate(10.00%) + 1.75 rest of the tenure

    My outstanding amount is 52 L.

    1. Will this be beneficial, if I switch to other lenders who are providing less interest rates or negotiate with SBI to reduce floating interest rate.
    2. Does SBI allow rate change for Maxgain home loan products?

    Thanks!

    • Melvin Joseph Posted April 9, 2014 5:25 pm

      First you negotiate with SBI. They may allow you the change after charging a conversion fee. If it is not working out then try other banks, offering floating rate Loan linked to base rate.

  • Ravi Raja Posted April 10, 2014 3:17 pm

    I have a home loan of 18.75 lacs (principal o/s as on today-10th april 2014). Interest rate currently is 12%. SBI is now offering 10.10% (lower rate) on payment of upfront one time fee of 10,400/-

    Is that good ? Can i opt for the same ?

    My contact number is 9790996720.

    Pl advice

    Ravi Raja

    • Melvin Joseph Posted April 22, 2014 6:27 pm

      Yes, switching to SBI will be better in your case because the interest rate is less by almost 2%.

  • Ashutosh Posted April 23, 2014 2:54 pm

    Hi Joseph,

    I had taken a loan of 13 lac in April 2009 from Canara Bank with following rates:
    1st year : 8.25%
    Next 4 years : 9.25%
    The above tenure is finished this April. Now the ROI is 11.95 %. The loan amount now is ~11.11 lac. They are offering me 11.2% with a fee of ~11000/-.
    Questions:
    1) Should I go for it or should I transfer it to SBI which is offering ~10.15%?
    2) If I transfer it to SBI, can you please let me know how much would I have to pay to SBI approximately (legal, valuation, processing fee, insurance policy, etc.)?
    3) In case I transfer to SBI, will Canara bank ask for 2% penalty?

    I am not able to decide on this. Please help.

    Regards,
    Ashutosh.

    • Melvin Joseph Posted April 23, 2014 3:55 pm

      I feel switching to SBI at 10.15% will be better for you in the long term. The difference between Canara and SBI is more than 1%. It make sense to switch to SBI. First find out if there are any charges on both the banks and then decide. If you require any further clarification, mail me after collecting all the details at melvin@finvin.in

      • Ashutosh Posted April 23, 2014 7:27 pm

        Thank you so much Joseph. I will first get all such details and will then come back to you.

  • Rajesh Posted April 23, 2014 4:30 pm

    Hi Joseph,

    i am having hte home loan in LIC with 22L (10.75 ROI), loan has been taken in March 2012. Now i am planning to go to SBI since the ROI is 10.15. Please suggest me since SBI wnated me to pay legal charges of 3500 and sanction charges 1100 and some other charges comes arount 2500 (total of around 7000).
    Also SBI wanted to Mortgage the with the cost of 500 per lakh.(in my case it will be 11000) .
    if i transfer the loan total expence will be around 20000 .
    Please suggest me

    • Melvin Joseph Posted April 23, 2014 5:12 pm

      The difference in interest is 0.6% if you transfer to SBI now. This rate can vary depending on the base rate of SBI. Switch will be attractive if you are planning to pay EMI for long term say like 15 year or so. If you are planning to preclose the loan in the next 5 year or so, it will not be attractive. But if you want to pay the EMI for 15 year and above, it will be attractive. Moreover SBI is more transparent in home loan. You can switch by spending 20,000.

  • Rajesh Posted April 25, 2014 4:11 pm

    Thank you so much Joseph.

  • Abhijit Posted May 10, 2014 1:54 pm

    I have received sanction letter from SBI Home Loan department Kolkata of Rs. 34L. It will be one time disbursement. I need this money during nomination transfer of the flat in Kolkata as the flat is not registered under seller’s name (no flats of that community/complex are registered yet, though development completed but it has not received completion certificate from Govt. as of now). In this situation SBI RACPC (HL dept) kolkata is saying that they can only do the disbursement on the date of registration. But I have to pay seller during nomination transfer otherwise flat will not be allotted to my name. After that when CC received then only can do registration …. I will be in a great loss because by agreement date is nearby and if SBI doesn’t do disbursement then I can’t take loan from other bank. As SBI has en-cashed all fees and loan is sanction already don’t you think legally they should do the disbursement on the day of nomination transfer ?? Please suggest and let me know about the process at your earliest. Many thanks in advance.

    • Melvin Joseph Posted May 23, 2014 6:33 pm

      You should consult a local lawyer to decide on this issue.

  • Rajeshwari M Posted May 11, 2014 4:00 pm

    Hi Joseph,

    We have a loan of 19.5L with GIC Housing Finance Ltd. at fixed ROI of 12.5%.
    Loan was taken on Dec 2011. We wish to switch to SBI which is providing floating ROI at 10.1%. SBI has demanded 17,000/- as:-
    Title clearance & search report -> 4000 (Is this required again, since it was already done by GIC, Please advise??)
    Processing fee 0.5% of loan amount -> 4500
    Mortgage charges 0.2% of loan amount -> 1000
    Valuation Report -> 845
    Total -> 9595/- & additional 7000 for insurance cover (this 7K can be eliminated since we can transfer our existing insurance cover from GIC, Please advise??)
    Also, GIC has demanded foreclosure charges of 2% of the outstanding principal (18.5L currently).
    Please advise if GIC can levy foreclosure charges & should we opt for a switch?
    Also, if we wish to make part payment of 5L now,
    should we do it after the switch to SBI or
    do it at GIC & then switch to SBI or
    make part payment to GIC & not switch at all

    Thanks,
    Rajeshwari.

    • Melvin Joseph Posted May 23, 2014 6:37 pm

      Since the difference in interest rate is 2.4%, it will be better to switch the loan to SBI. Better to make the part payment to GIC and then switch

  • Pramod Posted May 17, 2014 1:54 pm

    Hi Joseph,
    I’m having the home loan in LICHFL with 24L (10.70 ROI Fixed for 3 years), loan has been taken in Feb 2012. Current outstanding amount is 23,00,000 and loan duration is for 25 years. Now I’m planning to go to SBI since the ROI is 10.15. Please suggest me since SBI wanted me to pay legal charges of 3500 and sanction charges 1100 and some other charges comes arount 2500 (total of around 7000).
    Also, LICHFL is charging me Rs. 4000 odd.
    If I transfer the loan total expense will be around 11000.
    Please suggest me.

    Thanks,
    Pramod

    • Melvin Joseph Posted May 23, 2014 6:30 pm

      I suggest you wait till Feb. 2015 so that your loan will become floating rate after the 3 year period. You may take a decision at that time based on the interest charged by LIC.

  • SUDHAKAR Posted May 22, 2014 3:21 pm

    If I shift home loan from ICICI bank ( 10.75%) to LIC home loan (10.1%). The insurance on home loan is not being shifted by ICIC Prudential. I lose around 65% of the premium paid ( single premium of around Rs 2.2 lakhs.). In the overall analysis, is it worth shifting ? ICICI has agreed to reduce interest to 10.25 % with Rs 22,500 as processing fee.

    • Melvin Joseph Posted May 23, 2014 6:26 pm

      Single premium policies sold along with home loan is not a good option for home buyers. it is better to opt for online term policy for the required value to cover the home loan. In your case, I can comment only if you provide the details of the loan. Please mail full details to melvin@finvin.in

  • Mohan Posted June 25, 2014 7:56 pm

    Greetings! In Sep 2012, Axis Bank released HL Rs. 32,80,929/- @ 10.75 % Revised 11% in Aug 2013 with same EMI 40644/- Looking to switch to SBI, in that case the 1. insurance will get transfer. 2. Good to transfer to SBI for the benefit of ROI. Kindly advise

    • Melvin Joseph Posted July 31, 2014 4:26 pm

      No, the insurance cover will not be transferred. Yes, SBI rates are more transparent.

  • Suresh Posted August 1, 2014 9:55 am

    I have home loan of rs.21,15,000/- with Canfin at@10.95 % . Is it good to switch to SBI @ 10.15

  • manoj Posted August 20, 2014 12:01 pm

    sir,
    currently I am paying 12.5% interest on my existing housing loan with sbi. outstanding balance is approx. 14,00,000/- the loan was availed in march 2009.loan amt. 20,00,000/- under special loan scheme with initial rate of interest of 8.25%for first 2 yrs. & 9.25% for next 2 yrs. (the repayment period which i have opted is 15 Yrs.)but currently the floating ROI is charged at 12.5% where as the ROI for the new customer of sbi is 10.5%.
    sir, can I switch over/convert to new ROI linked to Base rate. Is it advisable to do so.

    • Melvin Joseph Posted August 27, 2014 4:09 pm

      Yes, the bank will charge some fee and allow you to switch over to the new rate of around 10.15%. It will be better to switch now.

  • Puneet Posted September 4, 2014 8:51 pm

    I took housing loan of 20 Lacs from Canara bank at 9.25% in 2010 which has gone to 11.7% at present.Now I have applied to LIC HFL for loan takeover plus top up of total 24 Lacs (15 years).They are providing 10.10% fixed for two years and floating thereafter. Total charges taken by LIC is Rs 15000/-.
    Is it a good decision?

  • Padma Posted September 11, 2014 8:14 pm

    We had taken a loan of Rs.12 lakhs in 2010 which was fixed for 3 years. Now the ROI is 11.75% with the EMI remaining at Rs.14292 but the tenure extended for a year or so. Since the floating rate is applicable now, would it be advisable to switch to SBI which is offering a lower ROI. I would also like to know if LICHFL has ever agreed to match the lower rates offered by the other banks. As you come across a cross-section of people who have switched over, I would like to know if LICHFL has ever agreed to reduce the ROI.

    Would also like to know the difference between fixed and floating and if we switch over now to SBI should it be at fixed or floating rates.

    • Melvin Joseph Posted September 30, 2014 6:23 pm

      Better to switch to SBI floating rate, which is more transparent. I am not sure about the LICFHL offer.

  • Senthil Posted October 21, 2014 2:40 pm

    I have taken a land loan from Sundaram, they have been charging 11% interest, it three years over they have changed the my interest to 16% and they say they have converted it to non housing loan as i have not constructed house.

    while taking loan they have not told you have to construct house with in three years or they gave any intimation until three years.

    now they have convert to 16%..which i cannot pay.

    how to go about on this?

    • Melvin Joseph Posted November 5, 2014 6:07 pm

      They are correct because in housing loan you were supposed to construct the house in 3 years.

  • Sandeep M Posted November 12, 2014 7:52 pm

    Hi Melvin Joseph ,
    I have taken loan of 18lcs from SBI on 2012 with interest 10.5 .
    Now my registration cost is calculated based total cost of the flat. that means My registration cost coming nearly 1.8lcs . where as ICICI and HDFC registration cost calculated based on Govt .Guidance value[13lcs], That is coming nearly 1.1lcs ~ 1.3lcs . Is there any way to reduce the reduce the registration cost ?

  • Dinesh Arora Posted November 22, 2014 6:48 pm

    Sir,
    I have LICHFL loan of ammount 1882000 Lac (floating) , in Aug 2009 & till today I am regular in EMI.
    My current ROI is 11.98% balance loan is @1572000 (remaining period is 176 months) .
    Now other lender is offering ROI at 10.15-10.25% ,
    LIC is ready to reduce RI for 1% (Around Rs 17500) charges and new ROI will be 10.90 ,
    Shall I think for transfer or go for LICHFL with charge amount 17500 and RI 10.90?

    • Melvin Joseph Posted January 5, 2015 10:29 am

      Try the transfer to floating rate loan of SBI.

  • Padmakar Posted November 24, 2014 7:38 pm

    I had availed a loan of 55 lakhs from LICHFL for 20 years in 2009, been repaying EMIs since 5 years with a good track record. The ROI charged is 12%. Should I consider balance transfer to SBI at 10.15% for 15 years tenure. Do you advice switching to SBI.

    • Melvin Joseph Posted January 5, 2015 10:28 am

      SBI is more transparent in passing on the lower rates to clients. Before switching the loan find out all the associated costs and then decide.

  • Muthukumar Posted January 5, 2015 10:29 am

    Hi All,

    I need an advice

    I took a loan of 50 lakhs on Dec 2013 for an interest 10.45 %. Is transferring to other bank like SBI is good ? and to which bank will be better.

    SBI is the low interest rate and i checked in LIC, they have mentioned 10.10 % for 2 years but after that i am not sure (they confused me in that part)

    Thanks in advance !

    • Melvin Joseph Posted January 16, 2015 1:49 pm

      Better to go for floating rate loan now because interest rates will come down again this year. You may approach SBI and consider the switching after understanding all the cost attached with transfer.

  • Rajan Posted January 9, 2015 3:42 pm

    I have availed a three years fixed Home loan from LICHFL at a interest rate of 10.7%. My fixed period ends in Sep this year. Currently i see that the floating rate interest is offered @ around 10.2 %. Am I loosing more since i took fixed or is it ok. But anyhow once the fixed term is over i am planning to change it to floating rate. Is it fine? Kindly advice.

    • Melvin Joseph Posted January 16, 2015 1:47 pm

      Since the fixed term is ending September 2015, I suggest you wait till then for switching to floating rate loans. You may enquire with other banks like SBI in advance s that you can get a better deal. Consider all cost attached while switching.

  • MANOJ P. R Posted January 15, 2015 9:12 pm

    I had availed a Loan (LAP – Loan Against Property) of 12 lakhs from IDBI for 15 years in 2014, @12.5% ROI(FLOATING) , as of this i want to switch over loan to any other Bank / Fin.instu. who are providing low ROI.
    What will be the procedure & which of the Banks / Fin.Instu. provides it & will be more convenient for the same. T.Y.

    • Melvin Joseph Posted January 16, 2015 1:43 pm

      First you ask IDBI whether they are ready to decrease the interest rate.
      If it is not working,then you enquire with SBI. Show them the copy of the documents. If they agree to take over, ask them all charges attached. Then do a cost benefit analysis and do the transfer.

  • Sirish Posted January 18, 2015 5:35 pm

    Hi Joseph,

    Greetings, I have a home loan from HDFC since April 2013. I am paying an EMI of 55,000 (which included Rs.1000 insurance from HDFC ergo) for a loan amount of 55 Lakhs @10.75%. I have seen other banks currently offering @10.15%. When I called up HDFC about this, they are saying that I should pay Rs.15,000 for a conversion to bring it down to @10.15% (there by keeping the EMI same and reducing the tenure by some 23 months).

    I would like to transfer the loan to SBI and they are offering @10.15% although they are charging 25,000 for stamp duty charges and no processing fee. I am considering their MAXIGAIN product where I can park some money and I will not be charges interest for that parked amount. Although I don’t have any immediate cash to park in the OD account, I am thinking I can do so in the future.

    I am in a dilemma as to what is more meaningful in the long run.
    Because I feel that that money I spend with HDFC for the conversion, I can actually use it for transfer to SBI. Please advise. Thanks in advance

    • Melvin Joseph Posted January 19, 2015 12:14 pm

      If you transfer your loan to SBI, you will not get the insurance cover which you have taken from HDFC .
      More over the interest rate outside is 10.15 only and you are not going to gain by transferring to SBI. In this situation, why not pay 15,000 and convert the loan to floating rate at 10.15% with HDFC? If it is changed to floating rate, subsequent interest rate reduction will also be applicable to you. Please confirm this from HDFC. There can be another 0.75% interest rate reduction this year.
      Reducing the term is better, because you can close the loan early

  • Hi Joseph Posted January 20, 2015 4:08 pm

    I have taken loan from ICICI bank for 13laks in 2007 with the tenure of 20 years. The rate of interest was 13.5% till couple of months and now reduced to 10.5%.

    Even then the tenure is reduced only by 19 months. Can SBI bank give better option in this case or would I be able to reduce my tenure / the amount I paying further, upon tranfering my loan account to SBI?

    • Melvin Joseph Posted February 24, 2015 5:50 pm

      SBI will be more transparent in this case.

  • Calvin Posted January 26, 2015 10:41 pm

    Dear John,

    I have an outstanding commercial loan of 32 lacs from Citizen Co-Op Bank @ 12.5%. Loan tenure was for 7 years, still have another 5 years to go. Until date i have no outstanding payments. I am planning to switch/transfer this loan to other lenders having a low interest rate.

    But before i start the process, i have few queries and would like to have your opinion

    1. Would my CIBIL rating be affected if i transfer the loan amount to another bank?
    2. Would my CIBIL rating be affected if i reschedule/extended the tenure with Citizen Bank?
    3. After how many years can an outstanding loan amount be transferred to another lender?
    4. Would it be sensible to switch to another lender if the difference in interest rate is 1% or more?
    5. What other expenses may arise at the time of transfer from both banks?

    Appreciate your feedback on the above

    Thank you

    • Melvin Joseph Posted February 24, 2015 5:49 pm

      Hi
      CIBIL rating will not be affected due to loan transfer/change in terms . The banks will allow transfer anytime as per their conditions – you may have to check up with your bank and study all the related costs. Other charges can be lawyer fee, panel valuers etc. 1% lower interest is a good reason to shift.. But short term loan will not benefit much in transfer.

  • Murali Posted February 4, 2015 5:33 pm

    Regarding the subject “One time option for existing customers to switch over to current rate” for housing loan interest, can you please clarify that we have availed this option couple of years back and again can we avail this option now .My Loan account is with SBI.

    • Melvin Joseph Posted February 24, 2015 5:45 pm

      I suggest you contact the bank. I feel they will allow.

  • muthusamy Posted February 24, 2015 2:00 pm

    Sir, I have a loan of 49,60,000/- with LICHFL (Tambaram). and I am paying an EMI of around 57,000 per month and it is for 15 years and for the first two years fixed interest rate and by this year june two years of fixed rate is coming to an end.
    I have been suggested by SBI people to preclose the LICHFL and transfer to SBI as there is no processing fee till this march. The house for which we have availed the loan is at chennai and we live at Trichy. SBI people say that we may save around 15 lakhs. Will it really work out over a period 15 years when the interest rates and norms keep changing. I am worried about the physical work of getting document and transferring document involved as we stay away from the present borrower. When I talked to our LICHFL agent he says, the way in which SBI calculate the interest is by keeping the money ideal for some days and they then calculate the interest at lower rate. LICHFL is doing all the the time this work whereas SBI has got another 10 more set of works to be performed. I expect your views on my concern sir.

    Thank you in advance

    • Melvin Joseph Posted February 24, 2015 5:41 pm

      I suggest you wait till June, when your fixed rate will be over and the loan will become floating rate. By that time, there can be some more reduction in interest rates. If you get 1% reduction in interest rates, yo can save around 6 lakhs as interest in 15 years. If you invest that savings for the next 15 years, it can add more to your kitty. I also feel, moving to SBI will be better if you can manage to get a better rate in June. Also consider all attached cost on both the sides. All the best.

  • muthusamy Posted February 25, 2015 1:27 pm

    The agent of LICHFL says that they will charge 2% penalty for pre-closer. but I read somewhere that it is not there with housing finance banks like LICHFL. If we need not to pay, can you please share a copy the document which is favorable to the borrowers of LICHFL.
    Thank you.

  • Bhogle Bhiwraj Posted March 4, 2015 5:11 pm

    Dear Sir,
    I had a (Me and spouse) home loan with SB Hyderabad in May 2012, an EME of Rs 20000/-. I paying my EMI regularly without failed. Now I am applying for top loan of 5 lakhs for renovation of my house. SBH asked me all the relevant documents alongwith my Form 16 for last two years. Presently where I am working they are not issuing me Form 16 saying that my salary is not under taxable so they not generating my Form 16. I had intimated to SBH about Form 16 and my company gives me two years gross salary certificate. I submitted my salary certificate with SBH but SBH denied me saying that without Form 16 they cannot process my top up loan application. So decided my home loan to switch over with PMC Bank and they are ready to process my application but almost 10% charges they asking for that of my Rs 5 L top up loan.

    • Melvin Joseph Posted March 17, 2015 6:37 pm

      Each bank is having their own norms for the loan. Most banks are insisting on income proof either through IT returns or through Form. 16.But 10% charge is very high for PMC bank.

  • Jagannath Posted March 18, 2015 12:21 pm

    Hi

    I have taken a composite home loan( Land cum Construction) from IDBI Bank, initially bank has sanction me a loan with interest rate of (Base + 1%), when i asked the bank official they said have you taken the house procession. then i said we took the procession in 2011. right from the beginning bank is charging me the interest 1% additional on Base rate.

    when i insist the banker by stating that if my interest rate is not going to change then i will look fro other option then they came with a proposal and asking me to pay 0.5% on the balance loan amount and take the wavial of the 1 % additional interest.

    So can any one suggest on this shall i proceed with bank proposal or challenge the bank that on whose guidelines you are charging 1 % additional interest.

  • SJOSE Posted March 30, 2015 1:21 pm

    MY CURRENT HOME LOAN IS WITH GIC @ 12.25% FLOATING TENURE PENDING IS 10 YRS @ APPX 6 LACS SHALL I TRANFER IT TO SBI / PS BANK

    • Melvin Joseph Posted May 7, 2015 12:59 pm

      You can get it at 10% now.

  • Pandiarajan Posted April 10, 2015 2:59 pm

    Dear Sir,

    I took home loan of 29,50,000 in LICHFL Tambaram March 2012. 3 years fixed interest rate of 10.7 %. In the LIC sanction letter, it was mentioned that after 3 years floating rate will be applied to me. But that floating rate of interest linked to then prevailing LHPLR. Sanction letter they mentioned LHPLR current rate is 11.40 %. When i talked to my agent about how this 3 years fixed period calculated, he told me that it was calculated from the First disbursement date., For 29th Mar 2012 is 1st disbursement. If that’s the case Fixed rate period would have been over by March 2015. I have 20.40 Lakhs pending in my homeloan as of today with 7 years EMI left. My question what is LHPLR? I read from consumer complaint sites that floating rate will come around 11.5 % as it is linked to LHPLR. so many people complained there like this. It looks like big cheating from LIC. My agent doesn’t have any idea about this Now I am thinking about switching over to SBI. When I enquired SBI for take over they said processing fee comes around 10000 and interest rate is 10 %. Need your advice here

    • Melvin Joseph Posted May 7, 2015 12:58 pm

      Earlier loan were linked to the Prime Lending Rates (PLR) and now it is replaced with Base rate, which is more transparent. Yes, there is a charge for switching. Negotiate with them and get a good deal.

  • chandra Posted April 15, 2015 11:10 pm

    Hello Melvin,I have hime loan with SBI.Currently I am looking for top up for wood work. But the person i met at bank denide for top up.So i need to go for personal loan or loan transfer. I have talked to other banks like hsbs,icici,axis and they are okay with loan transfer with top up.My current loan amount is 37 lk and i am paying since a year. Sbi is calculating eligibility on net take home where as others are on gross pay. Due to last qtr my tax deductio was high which brought my net income low. But that person was not agrred. I need money for wood work. Also ither banks are iffering home loan 9.90. Please advise whether I shall transfer .. or approach sbi branch manager or some thing else

  • Baby Posted May 3, 2015 12:09 pm

    I have loan of 25Lac from HDFC since Nov 2013 @10.35. Interest rate will come down to 10.15 in next cycle (JUN). HDFC is offering conversion to 9.90 (fee 6730). I am planning prepayment of 4 Lac next month. Should i wait for RBI next policy review? Any benefit if i take conversion before making prepayment?
    Please guide me to take proper decision.

    • Melvin Joseph Posted May 7, 2015 12:50 pm

      Better you do the prepayment now and then opt for conversion. This is because the conversion fee can be linked to the outstanding loan amount. Please check the conditions and then decide.

  • G Vasudev Rao Posted June 2, 2015 2:05 am

    I had taken home loan of 23.5 lacs from LICHFL in the year 2009. My current interest rate is 12% and the outstanding amount is 14.5 lacs. I had already made a prepayment of 6.5 lacs in the year 2011. Currently i am looking of switching my home loan to SBI. Kindly suggest me the best option.

    • Melvin Joseph Posted July 16, 2015 12:59 pm

      Enquire with the loacl SBI branch and get their guidance. If your track record is good, you can get a better deal.

  • ashref Posted June 20, 2015 3:30 pm

    sir I already got house loan from canfin ..25lacks now I paid 2 years emi..my loan period 15 years..but now i want finish in 5 years with more emi..is it possible..?

    • Melvin Joseph Posted July 16, 2015 12:58 pm

      Yes, you can request for a reduction in term and pay higher EMI.

  • Anand Posted July 11, 2015 2:13 am

    Hi
    I have taken a home loan of 22.5 lakh from GIC Hosing Finance in September 2014 for a tenure of 15 years at a RoI of 11.5% fixed for five years. But my first full EMI started in May 2015. Now, I would like to switch to SBT for lower rates. When am I eligible for switching my loan and how much would be the charges. Should I submit all the papers again to the new bank.

    • Melvin Joseph Posted July 16, 2015 12:55 pm

      Yes, for switching you have to do the documentation again. But you can gain a lot in the 15 year loan if you switch it to SBT.

  • Ajit Magar Posted September 3, 2015 12:38 pm

    Hello Sir,
    I do have home loan of 24.51L of LICH with interest rate of 10.7%. Also I do have two top up on that, 5.75L with 10.1% & 2.92 L with 12.5%.
    Now I am thinking to transfer all these loans to SBI ( I am getting 9.75 for home loan & 10.75 for top up).
    I am confused because of two reason,first,for new loan(SBI) again principle amount would be less and interest amount will be high and second,LICH offering me 10.5% floating rate on home loan.
    Already near about Rs 1L priciple has paid at LICH.
    so thinking this,would it be right decision to transfer loan to SBI?
    your suggestion would be very helpful to me.

    Thanks,
    Ajit

    • Melvin Joseph Posted September 25, 2015 4:15 pm

      If you are getting home loan at 9.75% and top up at 10.75%, it will be better to switch it to SBI. The total of the loan is around 33 Lakhs. Try to get the higher portion as home loan and the rest as top up, if the property value permit such change.

  • raghavenra Posted September 15, 2015 10:21 pm

    Hi Sir,

    My name is raghavendra, I took loan 29 Lacs in LICHFL 1.6 years back with ROI 10.1 fixed 2 years. Still 6 months are require to complete 2 years.
    After two years interest rate will be 12% not sure.
    Can i wait for another 6 month in LICHFL or can i switch to SBI now itself.
    Please suggest

    • Melvin Joseph Posted September 25, 2015 4:09 pm

      Wait for the 2 year period to complete and the switch to SBI after considering all related cost.

  • vikas Posted September 22, 2015 9:14 am

    hi i have taken loan of 26 Lakhs from LICHFL, of which24.00 Lakhs is outstanding . current LICHFL interest rate is 10.7 % , is it advoisable to switch to SBI where interest rate is 9.75 % , considering processing fees & property insurance cost which is mandetory to SBI is this correct decision .

    kindly advoice
    09881988474

    • Melvin Joseph Posted September 25, 2015 4:08 pm

      Enquire about the processing charges and related fee. some times, it is waived. For insurance you can go for a online term policy instead of the single premium insurance from SBI.

  • vikas Posted September 22, 2015 9:29 am

    hi

    i have loan from LICHFL , outstanding amount is 24.00 LAkhs with floating interest of 10.7 %
    is it advoisable to switch over to SBI with interest rate of 9.75 %

    • Melvin Joseph Posted September 25, 2015 4:07 pm

      You are getting around 1% reduction in rates now. If you opt for a floating rate loan, you will again benefit when there is further reduction in interest rates. Enquire about the charges at both ends before finalising the transfer.

  • Neelanjan Das Posted November 4, 2015 8:15 am

    Dear Sir,

    I have a Home loan of Rs.40L with HDFC @9.95%pa for a period of 21yrs.

    Now SBI is offering me@9.55. Should I switch ??

    Regards

  • ramkumar Posted November 5, 2015 12:14 pm

    sir I have taken loan in lic for RS 13.25 lacs for 12% interest in 2014. if it is useful to transfer my loan to sbi. I am a govt salaried person

    • Melvin Joseph Posted January 1, 2016 11:58 am

      Sure. SBI is offering around 9.6% now

  • Deepak Posted January 7, 2016 7:55 pm

    Hi
    I have LIC loan taken 3years ago for 32.8L with interest rate fixed 10.95 our for 10years.
    But as per LIC I was having option to convert interest rate from fixed to floating after 3years.so my interest rate is reduced now from 10.95 –>10.2 with outstanding of 28L Principal.
    As per current interest rate SBI is offering 9.6 interest rate, I am planning to transfer loan from LIC to SBI max gain.
    Kindly suggest, is it fruitful.

    • Melvin Joseph Posted February 13, 2016 12:00 pm

      Consider all the extra charges on switching and then take a decision.

  • Sarav Posted January 9, 2016 4:57 pm

    Dear Sir,
    I have taken LIC HFL Loan for 30L on 2011 for the interest rate of 11.15 % (FIxed for 5 years). Fixed rate tenure is not yet completed. I feel the SBI is offering the interest rate @ 9.75.

    Can i transfer my loan to SBI now(now I am paying in 5 years fixed rate – @ 11.15 %)

    What fees(in both ends) am i supposed to pay to get the loan transferred?

    Thanks
    SArav

    • Melvin Joseph Posted February 13, 2016 11:59 am

      After the completion of 5 years, you may try with SBI. Consider all charges for transfer and then take a decision.

  • Ashok Posted January 27, 2016 4:56 pm

    Hello sir,

    I am planning to take a housing loan in canfin homes ltd. But when i go through reviews about canfin homes its not up to the level. Mainly about gradually increasing interest rates than fixed rates and hidden charges.
    Could you please suggest that canfin is gud for take loan and trustworthy..????

    • Melvin Joseph Posted February 13, 2016 11:56 am

      I feel floating rate loan from SBI will be better

  • prakash Posted April 24, 2016 11:49 pm

    Hello Sir,

    I have taken loan with LICHFL for 28 lakhs in 2011(total 20 yrs term), they offered fixed rate of 9.95% for 5 years and now after completion of 5 yrs, they are offering floating rate of 10.2%. Loan outstanding around 20lakhs and I am planning to do some prepayments as well. Is it still better to move to SBI? I understand I have a preclosure charges of 2% in LIC and processing fee in the new bank.

  • prakash Posted April 25, 2016 2:30 pm

    Hello Sir,

    I have taken a loan with LIC HFL in 2011 for 20 yrs term, initially 9.95% fixed rate for 5 yrs and then converted to floating rate. Currently they are providing interest rate of 10.2%. Is this good or is better to move to SBI considering I may be doing some prepayments as well? I also have a preclosure charge of 2% in lic hfl.

    • Melvin Joseph Posted November 23, 2016 4:51 pm

      Yes, SBI will be a better option.

  • Nitish Posted May 11, 2016 10:47 am

    Dear Mr. Joseph,
    I’ ve opted for HL of 21 Lacs from LICHFL in 2010 with 5 years fixed term of 9.25 ROI. With prepayment brought loan amount to 10.75 Lacs and remaining tenure is 5 years with floating ROI of 10.20 from LICHFL. Please suggest should I transfer it to SBI with ROI 9.5? I don’t feel its beneficial at current stage as I can close this Loan next 3 years with prepayment. And if transfer it to SBI once again principal and interest ratio will adverse with transfer.

    • Melvin Joseph Posted November 23, 2016 4:51 pm

      IF your plan is to pre close the loan in the next 3 years, there is no need to switch the loan to SBI.

  • vadhana Posted August 1, 2016 10:48 am

    I have same case with LIC, currently having IR is 10.10% & loan amount is 31L & 2 year Fixed. Now I am completing 2 years fixed, from next month onward it will be floating IR 9.95%. can you please confirm, if I transfer the to SBI, is it benefical for me. what are the extra charges while transferring from LIC to SBI

    • Melvin Joseph Posted November 23, 2016 4:45 pm

      You can get around 9% rate with SBI after December 2016. There will be processing fee and engineers fee etc, which you may check up before switching.

  • Manjeet Deswal Posted November 4, 2016 9:31 am

    Hi, I took 40 lakh home loan from LIC 3 years ago at 10%. After the completion of 3 years, the interest rate has increased to 11.4%. I have made prepayments of 10 lakh and now the total outstanding is less than 27 lakh. When I told my desire to switch the loan, LIC offered me interest rate reduction to 9.95%. SBI is providing home loan at the rate of 9.1% now and there is no or minimum processing fees (5000 odd lawyer charges only). What should I do? Is it advisable to switch?

    • Melvin Joseph Posted November 23, 2016 4:43 pm

      Yes, Loan rates are in the range of 9.2% now. You can plan for a switch after December 2016, some more reduction is expected. Opt for a floating rate loan from SBI.

  • Gladstone Posted February 17, 2017 4:11 pm

    Hi, I want to do home loan transfer from LIC HFL to SBI. Is it a wise idea to do this now? LIC HFL has fixed interest of 9.60 for 2 years. I think, the interest rate in SBI is low.Please advise me on this. thanks

    • Melvin Joseph Posted February 28, 2017 1:34 pm

      transferring to SBI will be a better option. Please check all the associated cost before deciding on it.

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