We took a Housing Loan from SBI, 3 Years ago. The Rate of Interest was mentioned as 10.50% for the first year and 11% for the next 2 years and the floating rate after that. Now that the 3 years are over and when I checked the Interest rate - It was 11.5%, which is way above their current offer of 10.15%. Though Bank will automatically increase the interest rates (when its increasing), it will not do a decrease in the rates (when it's decreasing). Strangely that's how our banking system works (including SBI!!)
When enquired about the process of changing it to the modified base rate at our home branch, the manager informed us to go and get it done at RACPC, Koramangala. That's the branch of SBI for Housing Loans. We went there and met one of the officers over there. He gave one form (filled by himself) by looking at the Housing Loan Issuance papers. He informed that, we need to pay 0.56% of the remaining (outstanding) amount as a One Time Payment for this process. He calculated the amount and asked, if he can take the money from our SBI savings account, which is linked to the loan account. He did those things and now our interest rate is 10.15%. Roughly, this alone will result in a reduction of 4+ Laks towards interest for us.
In short - Take your Loan Approved documents, Have an SBI cheque/ Money in your Savings account -> Visit RACPC Branch of SBI and get this done. Spend few thousands to save few laks.
When enquired about the process of changing it to the modified base rate at our home branch, the manager informed us to go and get it done at RACPC, Koramangala. That's the branch of SBI for Housing Loans. We went there and met one of the officers over there. He gave one form (filled by himself) by looking at the Housing Loan Issuance papers. He informed that, we need to pay 0.56% of the remaining (outstanding) amount as a One Time Payment for this process. He calculated the amount and asked, if he can take the money from our SBI savings account, which is linked to the loan account. He did those things and now our interest rate is 10.15%. Roughly, this alone will result in a reduction of 4+ Laks towards interest for us.
In short - Take your Loan Approved documents, Have an SBI cheque/ Money in your Savings account -> Visit RACPC Branch of SBI and get this done. Spend few thousands to save few laks.
