TechnoparkToday.com(Feb, 2017) >> A good news for all home loan takers, banks are slashing the interest rates, and it’s a big relief and benefit for borrowers.
All major banks are slashing rates, for example SBI reduced the interest rates in to 8.6%, PNB, HDFC, Canara bank, Indian bank and dozens of other banks are also on the same way, even-though there are a few variance in the interest rates but anyway, it will be below 9.5%.
You may be taken the loans in different interest rates, like standard 9.5% to 11% or even more. but this rate cut will help you to cut your EMI amount and subsequently the number of years to repay.
Remember, the banks won’t automatically reduce your interest rate. for that you have to give a separate request to the bank. approach your branch and ask the procedure to do that. normally you have to submit an application ( offline / online) and they will be charging you a conversion fee ( may be around 10K, less or more according to the amount you took). and then it will reflect in your loan from the date of conversion.
There are two type of rates, Fixed and floating. opt for floating even if that’s bit more than the fixed. because the central govt may consider further cut on interest, so you will get that benefit on rate cut if you choose floating rates.