The recent reduction in the home loan interest rates as introduced by the State Bank of India has left the home loan shoppers definitely tempted by the affordable interest rates. Moreover, even the existing customers of SBI home loan can also move to this newly introduced rate by paying a minimal conversion fee.
Shifting from a Different Bank to SBI
But on the other hand, the situation is much more difficult for those who have already taken home loans from other banks. They will have to carefully calculate the benefits of shifting their loans to SBI before making a final decision. It is not an easy decision, since many factors are to be considered. The only consolation is that the entire process of transferring the loans from the erstwhile bank to a new lender has become rather hassle-free now. According to the new system, the prepayment fine on both floating rate loans as well as dual rate loans (during the floating period) has been done away with.
What about the Existing SBI Home Loaners?
As mentioned before, the existing customers of SBI can easily switch over to the revised interest rates paying a conversion penalty of just 1 per cent. If you replace the old rates by these revised rates right now, you will be permitted to avail lower rates and also the slimmer stretch of 25-40 basis points over the bank’s base fee which will surely be advantageous to you, throughout the loan period. However, fiscal experts are saying that chiefly small scale borrowers would actually make a substantial amount of turnover from this.
The Decision is Yours
You can easily decide to switch over to SBI, if the value of your loan is less than 50 lakhs. It will enable you to go for a completely smooth and easy migration process at the same time, giving you its newly revised lowered interest rates.