I am not sure whether this is supported by all the banks or not.
Me & my close friend Anil Vishwakarma have taken home loan from HDFC LTD.
Thanks to Anil’s proactive approach, he found out easiest way to reduce few installments, Conversion of Loan.
I approached home loan officer to reduce my few installments, whatever was explained / I could grab is ….
As of today bank has 15% RPLR, This is basic interest banks are charging us.
So how come interest rate we pay is around 11.25%?
While signing agreement, we are eligible for spread minus 3.75% over 15% = 11.25%
How do you reduce interest rate further?
By paying nominal fees you may change spread minus to 5.5% from 3.5%.
To increase spread minus, I paid Rs. 10,855, as a result my interest rate is reduced to 9.5%.
Spread Minus 5.5 % over RPLR 15% = 9.5%
Benefit?
My loan installments are reduced by 26, which is more than 3.5 Lacs .
Dont forget to comment if it works for you.
