How To Transfer My Home Loan? (Switch banks)

Updated on December 18, 20184 mins read
transfer your home loan

Due to a high disparity between interest rates for existing and new customers, several home loan customers are unhappy with the high rates they are being forced to pay. But when banks start discriminating between you and its new customers, it’s time for you to transfer your home loan to a lower interest rate and save money!

So here is a 5 step guide to transfer your home loan to lower interest rate: 

How To Transfer My Home Loan

Step 1: Cost Benefit Analysis

Cost benefits analysisAnalyze your situation, after which you will be able to decide the viability of transferring your home loan. Here are a few broad guidelines that will help you:

  1.  If your home loan is on a fixed interest rate, then you will have to pay a pre-payment penalty to transfer your loan. In this situation it is not advisable to transfer your home loan.
  2. But if you have a high floating interest rate, then transferring your loan to a lower interest rate will be beneficial. Most leading banks are now offering interest as low as 8.3% per year.
  3. If you have a home loan with long repayment tenure, then transferring will benefit you, as a longer time-period implies higher benefit.
  4.  You must take keep an eye out for hidden costs in the process. For example, some banks do not include documentation charges in the processing fee. Also, when a new mortgage deal is prepared, a Stamp Duty has to be paid on that (which is not included in the processing fee).

For a detailed and personalized analysis of your home loan, use our balance transfer calculator.

Step 2: Get NOC From Bank

NOC HOW TO TRANSFER

Next step is to get an NOC (no objection certificate) from your bank along with:

  • foreclosure letter
  • your payment history and
  • list of your documents that the bank has

This process may take 1 – 3 weeks, varying from bank to bank. At this stage, your current Bank will try to retain you by offering to slash the interest rate. It is best to take this offer and get a counter offer from another bank, with a little more effort.

Step 3: Apply To New Bank

applying to the new bank

Now that you have all the required documents ready, it’s time to apply to a bank of your choice.

For this you will have to get an NOC from your housing society/builder and submit proof of ownership, proof of income etc. to the bank. The bank will then check your ability to pay the EMI.

Since the process differs from bank to bank, it is not possible to list a standard procedure here. While applying, you can decide to top up the balance on your home loan, reduce EMI or reduce tenure.

Step 4: Credit Approval

Loan approval The bank will now evaluate your application and decide your eligibility. There is a chance the bank may want further details in this process. This is a time consuming process, as different banks have set different procedures. This process may take 3-4 weeks, varying from case to case. The bank will carry out extensive background checks on you before they give you a credit approval. It will:

  1. Re-evaluate your home loan
  2. Check your credit history
  3. Check the authenticity of ownership
  4. May also require extra documents from you

After the Credit Approval process is complete, the bank will give you a letter stating the interest rate at which the loan will be sanctioned along with terms and conditions. Once you get a credit approval from the new bank, it’s time to make the final decision to switch.

Choose between old and new bankYou have two options:

  1. Switching your home loan from your existing bank to the new bank
  2. Switching your home loan within the same bank to a lower interest rate

 Step 5: Documentation With Chosen Bank

Document verificationIn the final stage, you will need to complete the documentation process with the chosen bank. Both, your old and new bank will have a specific requirement of set of documents to complete the switching process.

A catch 22 situation arises in case of transfer to the new bank as the old bank will release your documents only if they get the cheque for the balance principal amount and the new bank will release the cheque only after all the documents are submitted to them.

To solve this, a meeting is held between representatives of the two banks. A cheque of the balance principal amount is handed over to the old bank, following the hand-over of your loan papers to the new bank. This ends the transfer process of your home loan.

You can save up to 30% of outstanding principal, calculate your savings here. It is quick and easy to use. You can also Signup with us to avail a free evaluation of your home loan by our experts today!

Our customer, Mrs. Smruti Prem saved Rs. 10,41,905 by switching home loan from DHFL to SBI. This is what she has to say“I just gave them the documents SwitchMe asked for, signed the forms, and visited bank for signing the agreement with SBI after loan sanction. Thanks for the smooth service.” 

Checkout her switching process here:


Tarini

Tarini

Tarini comes with a degree in Mass Communication and Media studies. She joined SwitchME as a content writer and moved on to being an assistant product manager. Tarini is an experienced Content Strategist with a background in Product development and management. She is skilled in SEO, social media strategy and online content marketing and likes to travel when possible
231 COMMENTS

Have a question? Post it here and we will get back to you within 1 working day.

  1. Padam
    Aug 04 2015 at 12:32 am
    Reply

    Hi Tarini…I have bought a flat and taken a loan of Rs 41,20,000/-from LIC Housing Fin Corp. Till now bank has disbursed a sum of Rs 35,00,000 to the promoter. Now after inspecting the flat I came to know that the promoter has not followed the proper guidelines while constructing the flat and I had a tiff with the promoter. I would like to know what remedial measures are available to me.

    Further I have stopped paying the EMI. Whether banks are supposed to verify that the construction is carried as per the standards and as per the terms and conditions agreed upon.

    The title of flat is pending to be transferred in my name.

    Need your urgent help.

    Regards
    Padam,
    9007141396

    • Tarini
      Tarini
      Aug 04 2015 at 2:58 pm

      Hey Padam

      Even though the banks and lending institutions carry out their own legal search and verify the property, its permissions and other legalities; the scope is restricted to only satisfy the lending institution’s requirements in order for them to sanction the loan. Thus, it will not be right for you to hold them responsible for the slack in builder’s construction. The best solution in this situation would be to sell of the property and repay your loan with the amount you receive. I hope this helps.

  2. Sachin
    Jul 30 2015 at 1:08 am
    Reply

    HI
    I want to transfer my housing loan from syndicate bank to SBI bank taken in Aug’2012.I’ve already approach SBI for the same.The SBI NOC format from society has condition as below:”We are agreeable to accept State Bank of India as a nominee for the flat/house allotted to Shri/Smt__and once the nominations favouring the Bank has been registered and advice sent to the Bank of having done so, we note not to change the same without the written consent of the Bank. ”
    Below are my queries:1)Is this a standard SBI NOC format as i have not seen such condition is any other bank NOC format or in the NOC issued by my society to my current lender?
    2) IS is OK to include this in the NOC ?.Most society will denies to add such condition in the NOC letter.I’m checking with the bank if this point can be removed .

    pls let me know urs input on the above condition
    Thanks
    Sachin

    • Tarini
      Tarini
      Aug 03 2015 at 3:09 pm

      Hey Sachin

      I have mailed you a copy of the standard SBI NOC format, do have a look 🙂

  3. Joyraj
    Jul 27 2015 at 3:26 pm
    Reply

    Hi,
    I had taken a loan for my flat from LICHFL on April/2014 for an amount of Rs.2045000 for 20yrs.Till date I have paid only 15 EMIs. Now I am planning to sell the flat. The prospective buyer that I have will take a loan from Central Bank and pay me the amount. What is the best way to do this deal. Do I need to close my loan with LIC first or is there any way for loan ownership transfer with incurring any penalty.

    • Tarini
      Tarini
      Aug 05 2015 at 2:48 pm

      Hey Joyraj

      You can either close your loan first and then sell the property or sell it off and then use that amount to pay off the loan. However, if your loan is on fixed interest rate, then you will have to a penalty in both cases. If its on floating rate, then no penalties will apply, this will be treated as a simple prepayment of loan. I hope this helps 🙂

  4. amit agrawal
    Jul 24 2015 at 3:52 pm
    Reply

    Hi Tarini

    I took home loan of 29,00,000/- INR in 2012 from LICHFL at ROI 10.7% for 15 years with EMI 32323/- per month and it was fixed for 3 years. My fixed tenure completed this month and revised ROI is 11.7%. From LICHFL nobody call me to update about this and also they kept my EMI as it is so I am assuming that my tenure they have increased. How can I know how much my tenure they have increased?
    Also i am trying to switch my home loan to SBI. SBI is charging stamp duty as 0.5% of outstanding loan amount along with so many other charges, is stamp duty is applicable once we transfer the home loan?

    Regards
    Amit

    • Tarini
      Tarini
      Aug 12 2015 at 5:59 pm

      Hey Amit

      Here’s a clarification to all your queries:
      You can confirm the change in tenure by going through your revised amortization schedule. Generally, LIC HFL offers higher interest rates than other banks, so it’ll be beneficial for you to switch to a PSU bank.
      2. Yes, SBI does charge a stamp duty of 0.5% of the outstanding loan amount. This is applicable to all new home loan borrowers and transferred home loan cases.
      3. You can use our balance transfer calculator to see a comprehensive list of all costs involved and the exact amount of savings you will make by switching your home loan. If you like, you can hire us to do the entire process for you by doing a simple sign up 🙂

  5. Adi
    Jul 15 2015 at 11:18 pm
    Reply

    Hi ,
    I took loan of 30 lacs from gic housing in 2012 and paid installments for 24 months, now when I m transferring loan to sbi gich are telling that will have to pay 2% penulty. My loan in gic had roi of 10.75 fixed for first 5 years and then variable . Loan in sbi have soi of 9.75 variable.
    Please guide..thanku

    • Tarini
      Tarini
      Jul 23 2015 at 1:59 pm

      Hey Adi

      As your home loan is on a fixed interest rate, you will have to pay a prepayment penalty to switch to SBI. The amount of prepayment penalty differs from lender to lender. So you can either pay the prepayment penalty now, as switch to SBI, or you can wait for the 5 year period to end, and then switch to SBI.
      I hope this helps.

  6. Kaustubh
    Jul 01 2015 at 3:59 pm
    Reply

    Hi
    After huge efforts I have successfully transferred my Housing Loan to SBI. However my Housing Loan is NOT MAXGAIN. I also hold Savings Account with SBI.

    – Is there any possibility that I can convert my normal Loan Account into MAX GAIN. If yes,
    – Will I gain “Reduced Interest” benefit for FDs that I hold with SBI

    • Tarini
      Tarini
      Jul 03 2015 at 3:07 pm

      Hey Kaustobh

      At present its not possible to switch to SBI Maxgain if you already have a regular loan with SBI, a technical error in their system prevents borrowers from making that switch. I hope this helps.

  7. Santosh
    Jul 01 2015 at 2:16 pm
    Reply

    I took 20L Home loan in HDFC @ 10.25%. After reducing home loan interest rates I
    planned to switch to SBI @ 9.75%. Here my problems started. HDFC offered 9.9%
    with conversion charges of Rs. 6K. But unknowingly I went for SBI. SBI charged
    me a lot on current O/S – 18.4L.

    Fees:

    Before loan sanction: –

    Legal – 2000

    Valuation – 3000

    EC – 500

    After loan sanction for 18.4L :

    Stamping – 9,710

    Processing fee – 4,590

    Service Tax – 570.00

    After all paying all these & doing signatures they are asking for Home Loan
    Insurance & 1000/- for security agreement for documents handover to SBI. I
    know it’s not mandatory I augured with SBI manager but SBI manager saying home
    loan insurance is must. Loan in not disbursed because i need to submit final
    outstanding letter for HDFC which I am not able to get it from HDFC.

    My questions are –

    Is SBI Home Insurance is really mandatory for takeover?

    At this stage can I drop from opting loan from SBI. If so, they return money of
    Stamping, Processing fee & service tax after sanction?

    Who will take care of submitting cheque to HDFC & getting
    property documents?

    SBI bank peoples or customer? Because SBI manager is saying they
    don’t do any thing. Customer has to take cheque and submit to HDFC & get
    property docs and should had over to SBI.

    Please help on this.

    • Tarini
      Tarini
      Jul 07 2015 at 1:14 pm

      Hey Santosh

      I understand the situation you are in, but I believe that switching your loan to SBI will prove fruitful for you in the long run as SBI has a reputation for offering the lowest interest rates in the market, while HDFC would have most likely hiked your interest rate after 6 months. This is so as while SBI (and all other banks) are guided by rules and regulations of the RBI, which strictly monitors lending rates, HDFC (and all other lending institutions) are governed by the NHB, which loosely monitors lending rates. Thus in general, borrowing from a bank is always better and more reliable than borrowing form a lending institution.

      Now, answering your queries:
      1. No, taking an SBI Home Insurance is not mandatory while takeover or while taking a new home loan from SBI. This is just a sales tactic to promote their products. However, it is strongly advised that you do take a home loan insurance of some kind. This will help cover your EMI payments in the case of any untoward incident, reducing financial burden on your family.
      2. Yes, you always have the option of not going ahead with switching your home loan to SBI but you will have to forgo all the processing fees, service tax, stamping and other charges that you may incurred during the process. SBI will not refund that to you.
      3. Typically, its the customer or customer’s agent (if you hire one) who take care of submitting the cheque to HDFC and getting the property documents form their previous lender. This is typically a lengthy task and will require you to constantly persuade officials at HDFC to process your request.
      I hope this helps!

  8. Satish
    Jun 26 2015 at 11:41 am
    Reply

    Hello Tarini,

    Need your advise, I have applied for Home loan in HDFC and HDFC has sanctioned HL for 30 Lakh, I have made the 10% payment to Builder with help of PL and some of saving, now while disbursement HDFC said that you should not take PL after home loan, actually I was not aware of this. Now HDFC asked me to open a FD in hdfc which will be lein marked to my home loan and i can not claim my FD till the time home loan is running. Please advise if I can switch my HL to some other bank, is it possible after 6 months. They did not give original FD to me or any receipt of it. Is there any problem HDFC will arising while switiching the loan after six month.

    • Tarini
      Tarini
      Jun 30 2015 at 2:04 pm

      Hey Satish

      This is very usual as HDFC should have no concern with how you arrange for your personal finances. As long as you are able to service your EMIs on time, the rest shouldn’t be their concern. So I believe you are being misguided.
      Answering your question, yes, you can switch your home loan from HDFC when ever you like, there are no time period constraints. Our Relationship Manager will get in touch with you shortly to guide you through the process.
      Meanwhile, its important that you get a receipt for your fixed deposit as you will need to produce it to claim the amount on maturity. Please get in touch with your bank, and pressurize the bank officials to give you a receipt at the earliest.

  9. Keerthy
    Jun 25 2015 at 12:10 pm
    Reply

    Hi,

    I would like to switch my housing loan from SBT to SBI but during processing, they are saying internal switching is not permitted within associate banks. But if you see the benefits and ROI, it is different in all the banks.
    Please let me know is there anyway to switch my loan to SBI?

    Thanks

    • Tarini
      Tarini
      Jul 23 2015 at 3:13 pm

      Hey Keerthy

      I believe you are being misguided. As per RBI regulations borrowers can choose to switch to any bank of their choice. It is possible to switch to SBI from SBT. Please contact higher officials to take the process ahead.

  10. Shamsh Tabrez
    Jun 11 2015 at 5:23 pm
    Reply

    Hi Tarini,

    I checked your transfer calculator as furnished below :

    is it fixed for SBI ” Bank Charges –Pay in 2nd week- 13,061/- “?

    To be paid over a period of time in instalments once the process starts

    50% SwitchMe Fees Pay in 1st week 2,500/-
    Bank Charges Pay in 2nd week 13,061/-
    50% SwitchMe Fees Pay in 2nd week 2,500/-

    thanks

    • Tarini
      Tarini
      Jun 11 2015 at 5:44 pm

      Hi Mr. Tabrez

      The break up of installments is based on the process followed by each bank. Our Customer Relations Manager will get in touch with you shortly to run you through the process 🙂

  11. Srikanth Iyer
    Jun 10 2015 at 10:02 pm
    Reply

    Tarini,

    I have applied for loan to idbi bank for which they have provided me an sanction letter offering 20lakhs for 20years at floating rate of 10% with emi 19633 rupees only. Now i want to reduce my loan amount to 17 lakhs only so in this case i want my tenure for only 15 years. Is it possible or there is a rule we can change the loan amount to less years if we reduce the eligible amount. please guide me as the bank loan person says that it wont be possible & if it is possible it will take 15 or more days.

    Regards

    Srikanth
    9867254069

    • Tarini
      Tarini
      Jun 11 2015 at 6:04 pm

      Hey Srikanth

      I believe it is possible to reduce the loan amount and the tenure before sanction of loan. But it is not possible for any bank to make this change immediately as a set of procedures needs to be followed before they approve a different loan amount. I believe this is the reason the bank official has said that doing so will take 15 days.
      I would advise you to be a little cautious here regarding the processing fee as the bank might treat this as re processing of your loan and may expect you to pay it again. Do clarify this with them before hand.

  12. Shamsh Tabrez
    Jun 04 2015 at 4:49 pm
    Reply

    Hi,

    MY Home Loan of 2075800 with DHFL has ROI as 11.35,which is very high.
    Please suggest if it easier and econimical to switch to SBI.and what would be total cost of switching.

    Thanks
    Shams

    • Tarini
      Tarini
      Jun 10 2015 at 3:58 pm

      Hi Mr. Tabrez

      Thank you for getting in touch with us. Considering the current ROI of 9.70% being offered by SBI, 11.35% is indeed a very high rate. You can see the cost of switching and exact savings you will make if you switch, on our balance transfer calculator. Kindly fill in your details, and our experts will take the case forward from there.

  13. G.P.Patnaik
    Jun 04 2015 at 12:38 pm
    Reply

    Hi, i had taken a loan of 24 lacks from IDBI bank, Hyderabad in the year April 2008 for 14 years tenure with monthly EMI Rs 29900 through my salary account from AXIS Bank, till date remaining 85 EMI has pending and they have charged 12% interest which is to much high,now they have suggest me to open a Bank account in his bank so that the EMI should clear from IDBI and ask me to pay Rs 10000 as process fees so that they can reduce interest rate to 10% by the way of cut down my pending EMI tenure from 85 to 74 but the monthly payment of my EMI will be the same.i am confused there calculation and presently i am at Mumbai and want to switch over to any bank with lower interest rate or else kindly suggest me the best way out .

    • Tarini
      Tarini
      Oct 09 2015 at 4:57 pm

      Hey G.P.Patnaik

      1. There is no need to open a SB account with IDBI as you already have one. You can continue paying your EMIs from that account.
      2. About the reduction in interest rate, you can either pay a processing fees and avail a reduced tenure in your existing bank or you can incur a few more costs and switch to another bank. You can make use of our home loan balance transfer calculator to find the cheapest loan option and get exact break up of all the costs and savings involved 🙂

  14. Mohammad Gouse
    May 21 2015 at 2:32 pm
    Reply

    Hi Team,

    I took Home loan from AXIS bank in 2011 of Amount 10 lakhs with ROI % 10.45.

    Future Installments : 1,075,708.00 / 81
    Installments Paid : 517,182.00
    Principal Paid : 216,712.00
    Interest Paid : 300,470.00
    Pre EMI paid : 38,436.00

    So is it suggestible to change other Bank, HDFC bank is giving me 9.90% with processing fees (5300 Rs)

    Thanks,
    MD

    • Priyanka
      May 25 2015 at 3:21 pm

      Hi Mohammad,

      There is no problem in switching your loan to HDFC bank as you will be benefited or you can ask ICICI to give you 9.90%.

      http://www.SwitchMe.in
      91-810889980

  15. Umesh
    May 15 2015 at 7:47 pm
    Reply

    hello,

    I have a home loan with LIC HFL, present outstanding principle is 2400000 and have fixed ROI until of 10% until next month. Later they claim that ROI would be 11.75% or 12.00% which i very high, can you suggest how to get the ROI at lower % around 10% or switching possibility.

    thanks in advance,
    Umesh
    Bangalore

    • Priyanka
      May 25 2015 at 3:37 pm

      Hi Umesh,

      You can switch your loan to either SBI, HDFC or ICICI. But we would recommend you to approach SBI as its a nationalised bank.

      http://www.SwitchMe.in
      91-810889980

  16. Ranjeet
    May 15 2015 at 11:55 am
    Reply

    Hi , i have one home loan and 2 TOP up loan and bank is not ready to reduce the top up loan rates , can i get the all loans trasnferred to other bank and also get all under home loan category so that i can get benifit of tax .

  17. bk
    May 12 2015 at 7:40 pm
    Reply

    Hi,
    Do you service in chennai reguon?

    • Priyanka
      May 14 2015 at 1:58 pm

      Hi bk,

      Currently our services are available in cities such as Mumbai,Pune,Bangalore and Delhi. Will cover Chennai pretty soon.

      http://www.switchme.in
      91-8108899980

  18. Ramesh
    May 07 2015 at 3:15 pm
    Reply

    Hi,

    Is HDFC charging for loan transfer to other bank? pls provide ur input.

    • Priyanka
      May 08 2015 at 3:00 pm

      Hi Ramesh,

      If the Rate of interest is in floating with HDFC, you only need to pay Rs.562 for LOD or if in a fixed period you need to pay 2% penalty of outstanding principle amount.

      http://www.SwitchMe.in
      +91-8108899980

    • Ramesh
      May 08 2015 at 4:14 pm

      Thx for ur info

  19. lokesh
    May 04 2015 at 1:26 pm
    Reply

    hi

    i have an existing loan with Axis bank [outstanding amount 29.7 Lacs] with 10.7% interest rate, when i started the same in Dec 2011 i also asked for insurance of home and the same was covered by bank and they financed it with the home loan amount. Now i want to switch the home loan to other bank at lower interest rate

    1. what will happen to my existing insurance ? will it be transferred with my home loan; will the new bank own the responsibility of insurance also?
    2. i purchased the property in Resale and did not went for mutation , is it mandate to transfer the home loan to Public sector banks?
    3. what are the options available for me?

    Regards
    lokesh

    • Priyanka
      May 06 2015 at 6:51 pm

      Hi Lokesh,
      A1. Your existing insurance can be transferred but you need to work on that.
      A2. For switching you can provide the chain agreement between the previous owner and you
      A3. All options are available for you. If you are in Mumbai, Pune or Bangalore we can assist you.

      http://www.SwitchMe.in
      +91-8108899980

  20. Nikhil Gupta
    Apr 20 2015 at 6:38 pm
    Reply

    Hi Team,
    I took a home loan of 18 lakh rupees (floating) with LIC Housing Finance in Nov 2011. The ROI they are charging to me is 10.84% and my EMI is 18390 per month. Duration of my home loan is 20 years. I am looking for options to transfer my home loan. But LIC Housing Finance guys are not cooperating and also telling me that all the banks would charge this much interest as the interest they quote while transfer of home loan are rate offers. So after few months my ROI with other banks would also be somewhere around 11%. I am confused should I go ahead with transfer of my home loan or not. Can you please guide me in this and let me know how much truth is in what LIC Housing Finance guys are telling me.
    Thanks.
    Nikhil

    • Priyanka
      Apr 23 2015 at 5:08 pm

      Hi Nikhil,
      You should switch your home loan as the bank rates currently are much lower than 10.84%. The current rates for LIC is 9.95% so you can also switch internally to the new rates by paying a small fee. Connect with us for more information.

      SwitchMe Team
      +91-8108899980
      ops@switchme.in

  21. Pandi
    Apr 13 2015 at 4:35 pm
    Reply

    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, Now fixed rate period is over. They are charging me 12 % floating rate. It looks like big cheating from LIC. I have 20.40 Lakhs pending in my home loan as of today with 7 years EMI left. When I calculated how much I would save if I switch to SBI using Switchme, It comes around 3 lakhs. I am thinking about switching over to SBI. When I enquired SBI for take over they said processing fee comes + Mortage+Legal comes around 22000 and interest rate is 10 %. Will LICHFL charge any penalty for Loan preclosure? Need your advice here. Is it right option to go for switch over?

    • Ashwini Menon
      Ashwini Menon
      Apr 15 2015 at 5:24 pm

      Hi Pandi,

      You shall not be charged any foreclosure charges since the fixed period is over. Please send an email to ops@switchme.in with your contact number and our Customer Relationship Manager shall speak to you and provide you with the necessary information.

    • Pandi
      Apr 20 2015 at 9:40 pm

      I have been told if the preclosure is done with other finance institutions funding then they will charge 2 % penalty in LICHFL…Is this true?

    • Priyanka
      Apr 23 2015 at 5:05 pm

      Hi Pandi,
      If your loan is on fixed period rate then LIC would charge 2% of outstanding loan amount. If it is on floating then you need to pay only 562/- to retrieve the LoD.

  22. Amit Kumar
    Apr 10 2015 at 2:02 pm
    Reply

    Hi Tarini,

    I have taken Home loan of amount 31.75 lacs with LICHFC fixed for 2 years @ROI 10.25 but now its in floating rate with ROI 11.75%. Right now my outstanding loan amount is 29.50 lacs and I want to switch it to HDFC. Pleas e let me know whether it’s a good decision or I need to opt another bank.

    Thanks in advance,
    Amit

    • Ashwini Menon
      Ashwini Menon
      Apr 13 2015 at 4:12 pm

      Hi Amit,

      Since you are switching from a Fixed Rate Loan to a Floating rate loan, you will have to pay a pre-payment penalty of 0.2%. Please contact us at +91 8108 899 980 for detailed information and assistance on switching your home loan.

  23. Kranthi
    Apr 01 2015 at 12:54 am
    Reply

    Hi Ashwini,

    I have taken home loan of 2100000 with HDFC bank in April 2014. In Feb 2015 i cam eto US. I deputed to US for 3 years on onsite assignment. My queries are
    1. Do I need to inform the bank regarding my locatin?
    2. Do I need to submit my income details while prepaying sum part of the loan?

    Thank you

    • Ashwini Menon
      Ashwini Menon
      Apr 01 2015 at 3:29 pm

      Hi Kranthi,

      Here are the answers to your queries:
      1. It is advisable to get in touch with your bank and inform them of your shift.
      2. There is no need to re-submit your income details with your bank at the time of prepayment.

  24. Anand
    Mar 30 2015 at 7:56 pm
    Reply

    I would like to switch my home loan (floating intrest rate) from PNB to SBI.
    Does PNB charges any fees on foreclosure of loan.

    • Ashwini Menon
      Ashwini Menon
      Mar 31 2015 at 12:44 pm

      Hi Anand,

      We are happy to inform you that for a floating interest rate home loan, banks do not charge foreclosure charges for switching/transfer of the Home Loan.

    • Anand
      Apr 14 2015 at 4:33 pm

      PNB is saying, since my last disbursement date is not more than one year I have to pay 1% as preclosure charges. Is it common in every bank? Even RBI is fine with it?

    • Ashwini Menon
      Ashwini Menon
      Apr 15 2015 at 3:50 pm

      Dear Anand,

      If you are on a Fixed Rate loan and wish to switch to a Floating Rate loan, the banks charge foreclosure fees. No bank should charge foreclosure charges for closing a floating rate loan in a bank.

    • Sushil
      Aug 07 2015 at 4:22 pm

      Dear Mad’m,

      Unfortunately, today itself CANARA Bank is charged me 2% of my outstanding amount.

      My homeloan outstanding amount was 750000 @ 11% floating interest at Canara bank.

      recently I shifted it to SBI @ 9.75% floating interest. When approached to Canara bank for fore-closure procedure they asked me to pay 2% of my outstanding amount that was approx. 16000/-. The Canara bank officer said it is their rule.

      Please advise was it as per the RBI mandate? can I fight with Canara Bank for reversal?

      Thanks and Regards
      Sushil

    • Tarini
      Tarini
      Aug 07 2015 at 6:58 pm

      Hey Sushil

      As per RBI regulations, banks have been directed to remove all prepayment penalties on floating rate home loans. Here’s a copy of the RBI regulation.
      https://rbi.org.in/scripts/NotificationUser.aspx?Id=7258
      https://rbi.org.in/scripts/NotificationUser.aspx?Id=8868&
      You can refer to it for more clarity. I suggest that you demand a reversal from Canara Bank and in the case of non-compliance, you can approach the RBI Ombudsman to file a complaint against them.
      https://www.rbi.org.in/commonman/English/Scripts/AgainstBank.aspx
      I hope this helps!

    • Sandeep Ingle
      Apr 17 2015 at 7:03 pm

      I have 15L Loan from GIC Panvel Navi Mumbai branch on floating rate. RIO is 12.50 % which I too high. I would like to transfer to UCO bank, They are offering 10.20%. However GIC is asking to pay 2% of outstanding amount. But as per my knowledge for a floating interest rate home loan, banks do not charge foreclosure charges for switching/transfer of the Home Loan.

      How to talk to GIC about this matter?

      Regards,
      Sandeep Ingle
      8308553805

    • Priyanka
      Apr 20 2015 at 6:25 pm

      Hi Sandeep,
      Please let GIC know that your rate of interest currently is in floating and not in fixed, so they should be charging you only 562/- for Lease of Documents. Hope this answers your query.

    • Chandramohan
      Oct 16 2015 at 5:22 pm

      Hi Priyanka,

      In case if GIC denies to accept this and asks for foreclosure charges. what to do?

    • Tarini
      Tarini
      Oct 19 2015 at 10:42 am

      Hey Chandramohan

      It is unlawful for GIC to not recognize your home loan rate as floating, and demand a foreclosure penalty. They will have to treat your case like all other regular switching cases at GIC. If not, then you can lodge a complaint against them in NHB. Here’s the link:http://www.nhb.org.in/Regulation/Complaint_Cell_against_HFCs.php
      I hope this helps 🙂

  25. alan
    Mar 21 2015 at 2:44 am
    Reply

    I am switching from LIC to SBI home loan due to higher interest rate. is it the right time to switch or wait for few days sothat ROI goes down?

    • Ashwini Menon
      Ashwini Menon
      Mar 23 2015 at 4:01 pm

      Hi Alan,

      If you are interested in switching your Home Loan from LIC to SBI, it is advisable to initiate the procedure now. By the time the documentation is complete, if SBI announces a rate-cute, you can benefit from it then. Contact SwitchMe at +91 8108 899 980 for a hassle-free switching process.

  26. suraj
    Mar 17 2015 at 8:57 pm
    Reply

    Hi,
    Please give me suggestions my running home loan 1500000/- 225 month balance in GIC home finance it’s very high interest rates 12.50 % fixed please help me right decision within six months transfer my loan possible because cibil score is down

    • Tarini
      Tarini
      Mar 19 2015 at 3:09 pm

      Hi Suraj

      12.50% is indeed an exorbitant rate! Our Customer Relationship Manager will get in touch with you shortly, to assist you in analyzing the situation and deciding the subsequent course of action 🙂

  27. neeta
    Mar 16 2015 at 4:07 pm
    Reply

    Hi Tarini..

    It is very imp iformation u have shared with us.. thanks for that..
    I opted 31 laks Home loan from SBI last year now outstanding is 28 laks, i want to swith over to other bank, what will be swiching charges / Takeover charges will SBI take.

    • Tarini
      Tarini
      Mar 17 2015 at 5:10 pm

      Hey Neeta

      Switch over charges will include stamp duty. and processing fee; which will be charged by the bank you switch to. Your current bank will not charge you anything for switching (unless you need to pay a prepayment penalty if you’re on a fixed interest rate). For a detailed break up of charges and savings made on switching to another bank, you can use our Home Loan Balance Transfer Calculator. Our Customer Relations Executive will get in touch with you shortly to guide you through the process 🙂

  28. varalakshmi
    Mar 09 2015 at 10:41 pm
    Reply

    hi tarini,

    We have SBI MAXgain home loan with ROI 10.25% for Rs. 25,00,000.00 Monthly EMI Rs. 25,000.00 for 20 yrs.

    We want to change my LOWEST ROI at same SBI Branch for same EMI and present my outstanding Rs. 15,00,000.00 ( loan was started from JULY 2013) we paid surplus amount nearly Rs. 7,00,000.00

    what is the procedure for changing my interest rate.

    • Tarini
      Tarini
      Mar 10 2015 at 7:03 pm

      Hey Varalakshmi

      To switch over to a lower interest, you need to visit your bank, fill out a form and pay a processing fee of 0.5% of the outstanding loan amount. This process should take roughly 2 weeks to a month. However, I would advise you to wait for a month or 2 as a further cut in lending rates is expected to be announced by banks, following RBI’s decision to reduce repo rate. Also, before you switch over, it’ll be helpful if you did a comparative analysis of how much you will save and the expenses involved.

    • Vikas Kumar
      Mar 12 2015 at 6:05 pm

      Hi Tarini ,
      I have a HL from SBI for 40 Lakh for 25 yrs. The loan was sanctioned at 10.10 but was revised to 10.4 soon after , I have been paying full emi from day 1 ,mostly at 10.4, the loan started in Sep 2013 and is for UC property , I have been disbursed around 75% of the sanctioned amount till date and the rest is expected to be demanded by the end of the year on possession. I have been offered loan transfers from many banks/nbfc at rates between 10% to 10.1% , Is it advisable for me to switch the loan from SBI to say, Bajaj or LIC /HDFC ? HDFC is offering zero processing fees, only LIC is willing to give the loan for 25 yrs.

      Kindly advise .

    • Tarini
      Tarini
      Mar 12 2015 at 7:15 pm

      Hey vikas

      I would advise you to hold your plans of switching for a month or two, as banks are expected to further reduce their lending rates, owning to the repo rate cut announced by the RBI recently.
      Further, it would be best for you if you switched internally and stayed with SBI as its offering the most competitive rates in the market at present. You can switch to a lower interest rate within SBI by paying a processing fee of 0.5% of your outstanding loan amount.

  29. varalakshmi
    Mar 09 2015 at 10:39 pm
    Reply

    hi tarini,

    We have SBI MAXgain home loan with ROI 10.25% for Rs. 25,00,000.00 Monthly EMI Rs. 25,000.00 for 20 yrs.

    We want change my LOWEST ROI at same SBI Branch for same EMI and present my outstanding Rs. 15,00,000.00 ( loan was started from JULY 2013) we paid surplus amount nearly Rs. 7,00,000.00

    what is the procedure for changing my interest.

    • Tarini
      Tarini
      Mar 10 2015 at 7:00 pm

      Hey Varalakshmi

      To switch over to a lower interest, you need to visit your bank, fill out a form and pay a processing fee of 0.5% of the outstanding loan amount. This process should take roughly 2 weeks to a month. However, I would advise you to wait for a month or 2 as a further cut in lending rates is expected to be announced by banks, following RBI’s decision to reduce repo rate. Also, before you switch over, it’ll be helpful if you did a comparative analysis of how much you will save and the expenses involved.

  30. Jaya NehruKumar
    Mar 04 2015 at 7:09 pm
    Reply

    Hi Team
    Currently we have constucted a house , and land is in my husband name , running home loan in SBI.
    I want to include my name also as coowner for the land/house to reduce my incometax burdens. SBI told it is not possible. Could you please advise any options we have?

    • Tarini
      Tarini
      Mar 04 2015 at 7:21 pm

      Hey Jaya

      I believe you are being misguided. It’s possible to add co-owners to property after taking a home loan. All you need to do is take an NOC from the bank (which may prove to be a hindrance in your case as your branch seems to be unwilling to help you out) as technically the bank owns the property until the loan is paid off. Once this is done, the owner can execute a deed on stamp paper to include you as a co-owner.

    • Jaya Nehru Kumar
      Mar 05 2015 at 2:39 pm

      Hi Tarini
      Thank you very much for the details provided. Is it mandatary to close the housing loan to get NOC ? Logically speaking Bank should help us to include new deed with my name added in owners list.
      In worst case i would need to close the home loan in SBI and move to some other bank to continue the loan. Please guide me is it feasible to do so and what are the steps i have to do for this.
      Thanks in Advance for your guidence

    • Tarini
      Tarini
      Mar 09 2015 at 5:23 pm

      Hey Jaya

      Not at all! You don’t need to close the loan to get an NOC, you need to simply write a letter to your loan branch stating that you wish to add a co-owner to your property. I don’t think you will need to shift your loan to another bank, SBI officials should come around, it may take some time though.

  31. Pavan
    Mar 04 2015 at 12:39 am
    Reply

    Hi Tarini, I have taken Home loan with LICHFC fixed for 2 years @ROI 10.25 but now its in floating rate with ROI 12%,They have cheated me initally with lowest ROI but now its jumped to 12%.So Iam considering totransfer my home loan to PNBHFL @ROI 10.15% is it right option. Also is PNBHFL is governed by RBI .

    Thanks in advance,
    Pavan

    • Tarini
      Tarini
      Mar 09 2015 at 7:06 pm

      Hey Pavan

      Though at the moment it seems like a viable option, I would suggest you read through PNBHFL’s offer document carefully before switching.
      PNBHFL and LICHFL are both governed by NHB and not the RBI.
      Does it mention any rise in rates in the near future? What are the switching charges and other charges involved? Is this rate a fixed or a floating rate? Please do consider these before switching.
      Also, you could use our home loan balance transfer calculator to see other possible options for you to switch your home loan.
      Our Customer Relations Manager will get in touch with you shortly, to guide you through the process of switching home loan 🙂

  32. Deepak
    Mar 01 2015 at 8:10 pm
    Reply

    Is there a way pre part payment of ICICI Home loan without visiting the branch. I am in US and wants to make a pre payment but FAQs on icici shows I have to visit the branch and take a request number and mention it in the comment while making a NEFT. Is there any other way. I am really stuck with this. not happy at all with icici.

    • Tarini
      Tarini
      Mar 03 2015 at 3:35 pm

      Hey Deepak

      I believe that you have no other option, but to follow the bank’s guidelines, unless you can personally contact them and request them to make an exception in your case. However, if you do need to come down to India to prepay the loan, you could also take some time out to execute a power of attorney in the name of a trusted person, empowering them to make decisions or complete formalities on your behalf, regarding the home loan.

  33. Karan S
    Feb 26 2015 at 11:59 am
    Reply

    Greetings!

    I have taken home loan of 25 lakh from DHFL at 11.00% in 2012. Now I want to transfer my home loan from DHFL to Indiabulls Housing Finance Limited

    • Tarini
      Tarini
      Mar 02 2015 at 4:53 pm

      Hey Karan

      Thank you for contacting us, our Customer Relationship Manager – Abhishek will get in touch with you shortly, to help you understand the switching process 🙂

  34. daniel
    Feb 15 2015 at 6:25 pm
    Reply

    hi tarini ,

    I have a 25 lakh home loan from tata capital which has started in Nov 2014. Now I want more loan on the same apt and they are not approving. I want to transfer it to SBI. My doubt is, all my documents like sale deed and agreement copy and receipt original are with tata capital. to get a HL sanctioned from SBI we need to give all these and tata capital wont give them until I pay them the money. How do we resolve this ? Can you please advice. Appreciatie it. thanks.

    • Tarini
      Tarini
      Feb 16 2015 at 4:32 pm

      Hey Daniel

      While approaching SBI, you need to tell them that its a case of transfer and not fresh home loan. Once you have gotten an NOC, foreclosure letter and a list of documents from Tata Capital, you can apply to SBI. If you are found eligible for home loan, they will hold a meeting with Tata Capital in which they will pay off the loan on your behalf and take possession of your property papers.

      Our Customer Relations Manager will shortly get in touch wit you to guide you further 🙂

  35. Ammy
    Jan 21 2015 at 3:59 pm
    Reply

    I am taking a loan from HDFC Ltd.as the whole process and disbursement is smooth.But i wanted to go for SBI as the builder wants payment a bit early.If I chose to switch over to SBI..will that be an expensive venture.Is there a huge difference.The loan amount is approx 20 Lacs.I am staying in Mumbai..AS

    • Tarini
      Tarini
      Jan 21 2015 at 7:56 pm

      Hi Ammy
      Thank you for contacting us.
      If your loan from HDFC hasn’t been disbursed yet, then you can write a letter to them stating that you no longer wish to take a loan from them and you can approach SBI for a new home loan. Though SBI might take longer than HDFC to complete all the formalities and disburse the final amount, this will save your overall time and effort in first taking a home loan and then switching it. Not to mention the cost factor involved.
      To see how much to will save by switching your loan to SBI and get an estimate of the total cost involved, you can use our home loan balance transfer calculator.
      We will be happy to help you get a new home loan or switch your loan from HDFC to SBI (depending on what you decide). Kindly mail us your contact no. at opsATswitchme.in so that our Customer Relations Manager can guide you through the process.

  36. vasanth
    Jan 17 2015 at 4:53 pm
    Reply

    Hi Tarini; i have taken a loan from hdfc on last December with floating interest. Now planning to move sbi should i need to pay any charges for transferring loan from hdfc to sbi and let me know the process. Thanks
    Vasanth
    Mob. 9600018856

    • Tarini
      Tarini
      Jan 19 2015 at 1:16 pm

      Hi Vasanth

      Thank you for contacting us. Our Customer Relations Manager will get in touch with you shortly.
      Answering your query; Yes, for transferring your home loan you will need to pay a certain processing fee, stamp duty and registration and other charges. To get an accurate estimate, you could use our home loan transfer calculator to see the exact savings and total cost of switching to SBI.

  37. Mukesh Kamthe
    Jan 14 2015 at 6:15 pm
    Reply

    Hi Team,

    I’ve taken a loan from INDIABULLS (Vashi Branch) for XRBIA project in Hinjewadi. Aftersales service from INDIABULLS is very pathetic and I want to transfer my Home Loan to some other bank. can you guys help???

    • Tarini
      Tarini
      Jan 15 2015 at 5:10 pm

      Hi Mr. Kanthe
      Wishing you a happy and prosperous New Year 🙂
      We would be happy to help you out in this matter. If you could provide us with your contact details on this link, our Customer Relationship Manager will get in touch with you to process the transfer.

  38. Karthik
    Jan 13 2015 at 8:18 pm
    Reply

    Hi Tarini,

    I have taken home loan in HDFC Limited in hyderabad back in 2012 for 3 years fixed @11.75 which is now finished. Could you please suggest me the best bank to transfer the home loan. And more over HDFC is charging 10000 rupees to convert to floating @10.15%. What would be best staying with HDFC or switching to some other bank.
    This loan is of 39,00,000 for 20 years.

    • Tarini
      Tarini
      Jan 15 2015 at 4:52 pm

      Hi Karthik
      Here’s wishing you a happy and prosperous new year 🙂
      I will not be able to advise you on this as the best bank for you will depend on your needs and other details of your home loan. You can use our home loan balance transfer calculator to find the cheapest bank for yourself. Do note, the the processing fee and other related charges differ for each bank which will impact your overall savings.

  39. Vilas R. Gavane
    Jan 08 2015 at 1:18 pm
    Reply

    Hello TARINI,

    I have taken 14.30 lacs loan from ING Vyasya Bank in Dec. 2009 My current ROI is 12.84% Reducing Also i have taken this loan for 20 years. my current EMI -15600,/-

    My points

    1) At pthe time balance is 1300000
    2 ) I want to transfer it to other bank with lowest interest rate -> Please suggest me the best bank.
    2 ) Please advice me urgently/ call me on below no.
    3) property in pune

    Thanks in adv 🙂

    Regards,

    vilas Gavane

    • Tarini
      Tarini
      Jan 08 2015 at 3:45 pm

      Hi Mr. Gavane,
      Thank you for contacting us. Here’s wishing you a happy new year from our entire team.
      1. An interest rate of 12.84% is very high compared to the prevailing market rates. To find the best deal suited to your needs, you can use our balance transfer calculator here: http://switchme.in/switch-home-loan
      2. Unfortunately, I don’t see a contact no. on which our team can reach out to you. Since our operations are limited to Mumbai at present, we will not be able to do the entire process for you. However, do feel free to contact us for further guidance in this matter.

  40. Altaf Shaikh
    Dec 16 2014 at 10:25 am
    Reply

    Hi,

    I have home loan 19 lakhs & top up 5 lakhs with PNB housing at interest rate 11.00%.fixed for 10years.Iam talken this loan in Dec 2013. I want transfer my loan to other bank. Please guide me my cell number is 9029988664

    • Tarini
      Tarini
      Dec 16 2014 at 4:34 pm

      Hi Mr. Shaikh

      Thank you for reaching out to us, our Customer Relationship Manager with get in touch with you shortly.

  41. Hari
    Dec 04 2014 at 11:10 pm
    Reply

    Hi team,

    I have home loan 48 lakhs with karnataka bank ;interest rate 11.5%. I paid 16 EMI till date. The loan agreemnt had a clause that , in case balance transfer, customer need a to pay 1%. This agreement was done on Mar 2012. where as RBI guidelines for no-panalty-for loan-transfer cam e to effect on June 2012. But , now bank i asking for 1% penalty for loan transfer. What shall i do now? Hari

    • Tarini
      Tarini
      Dec 05 2014 at 4:24 pm

      Hi Hari

      Could you help me with the name of the bank through which you have taken this loan? This would help me guide you further, as if its an NBFC then RBI guidelines will not apply to it.

    • harsha
      Dec 05 2014 at 4:31 pm

      Hi tarini. Thanks for picking thsi up. The bank is called Karnataka bank.

    • Tarini
      Tarini
      Dec 08 2014 at 2:27 pm

      Hi Harsha
      I have tried to contact official at Karnataka Bank to clarify the same, but that hasn’t been helpful. Since the RBI has banned prepayment penalty on all floating rate home loans your home loan agreement should be revised accordingly with the bank. You can send the bank a copy of the RBI regulations to support your case.
      If nothing works out, I would advise you to approach the RBI banking ombudsman to launch a complain.

    • DIPAK
      Sep 07 2015 at 10:02 pm

      NBFC also comes under NHB (National Housing Bank, fully owned by RBI) . so dont worry. no prepayment charges. REFER FOLLOWING LINK.
      http://www.indiabullshomeloans.com/files/pdf/NHB-ND-DRS-Policy-Circular-No-63-14.pdf

    • Tarini
      Tarini
      Sep 08 2015 at 1:00 pm

      Hey Dipak

      Thank you for sharing the link with our readers 🙂 However, I’d like to clarify that NHB’s rules and regulations are completely independent of the RBI. While RBI governs all the banks, all other financial institutions are governed by rule of NHB (which differ in several aspects from RBI regulations).

  42. Vijay
    Nov 19 2014 at 11:46 pm
    Reply

    Hi Tarini,

    I am going to buy a flat for which I have applied for home loan in IDBI bank which offers 21,00,000/- loan at interest rate of 10.25% floating but at the same time ICICI is offering home loan at 10.15% floating. Also with ICICI there is an option of fixed interest rate of 10.25% for 10 Yrs. I am badly confused, whether to go with IDBI or ICICI. Can you please guide me?

    IDBI does not charge processing fee, where as ICICI charges 10,000/-
    Please help me to choose.

    Regards,
    Vijay

    • Chintan Udani
      Nov 20 2014 at 12:03 pm

      Hi Vijay,

      Interest rate between ICICI and IDBI is not very different as a result over a period of time you will save only around Rs. 70000 if you take home loan with ICICI at 10.15% floating interest rate. If you think ICICI is a good bank and will provide good service then I would suggest you go with ICICI.

  43. Arvind
    Nov 11 2014 at 4:20 pm
    Reply

    Hello,

    Do you have service in Bangalore too? Please advise.

    Aj

    • Chintan Udani
      Nov 14 2014 at 5:05 pm

      Hi Arvind,

      Sorry currently our service is available in Mumbai only. We will start service in Bangalore soon.

  44. Kiran Dhobale
    Nov 03 2014 at 4:57 pm
    Reply

    Hello TARINI,

    I have taken 20lacs loan from GIC housing finance in Nov-2013, My current ROI is 11.10% fixed for first 5 years. Also i have taken this loan for 20 years. my current EMI -21,700/-

    My points
    1) I want to transfer it to other bank with lowest interest rate -> Please suggest me the best bank.
    2) Also want to increase my EMI to around 30,000/-
    3) Please advice me urgently/ call me on below no.

    Thanks in adv 🙂

    Regards,
    Kiran Dhobale
    +91-9029801053

    • Chintan Udani
      Nov 04 2014 at 10:49 am

      Hi Kiran,

      As you are currently on fixed rate loan you will have to pay 2% pre-payment penalty to switch your loan. You can check out your savings on switching and decide on your preferred bank with the help of our calculator at http://switchme.in/switch-home-loan.

      In the meantime one of SwitchMe operative will call you and guide you through the process.

  45. SRINIVAS
    Oct 22 2014 at 12:40 pm
    Reply

    HI Tarini Iam Srinivas from Hyderbad do you provide your sevices in our city. I registered with switch me long back but i wanted to check if your service is limited to mumbai or is there in hyderbad

    • Chintan Udani
      Oct 27 2014 at 11:24 am

      Hi Srinivas,

      Currently our services are only available in Mumbai. We will be starting our services in other cities soon.

  46. JB
    Oct 14 2014 at 5:18 pm
    Reply

    Hi Tarini

    Thanks for the prompt response. SBI is asking for an NOC from HDFC to ensure HDFC is OK with the loan takeover. As per the SBI representative I talked to they had experiences in the past with private banks where they didn’t allow the takeover, hence the NOC. I need to talk to the SBI representative for more details

    Regards
    JB.

    • Tarini
      Tarini
      Oct 15 2014 at 1:19 pm

      Hey JB

      This is rather odd. We have helped several customers switch their home loan to SBI, we haven’t come across such a request from them yet. I think it would be better if you approached another branch of SBI.
      If your home loan is in Mumbai, then we would be happy you help transfer it. Kindly sign up at http://switchme.in/switch-home-loan to switch from the comfort of your home.

  47. J. Banerjee
    Oct 14 2014 at 3:17 pm
    Reply

    Hi,

    My current loan is with HDFC and want to transfer this to SBI. SBI is asking for the NOC letter however HDFC is flatly refusing saying they dont provide an NOC. Any idea if this is true and what are my options.

    appreciate your help
    JB.

    • Tarini
      Tarini
      Oct 14 2014 at 4:37 pm

      Hi JB
      Generally banks don’t give NOC for switching. Are you sure that the SBI has asked for an NOC from your previous bank (HDFC) and not the builder? Kindly clarify with SBI 🙂

    • Rajbinder Singh Sidhu
      Feb 24 2015 at 4:45 pm

      Hi Tarini

      Builder (Jaypee Associates Limited) is charging Rs 5000/- plus taxes to issue NOC which is required by Bank to whom I want to transfer loan. Is it charged by all the builders? I wonder what efforts will be required from Builder’s side for this loan transfer for which it is charging so much fees. I think it should be free of cost. Please guide.

      Regards

      Rajbinder

    • Tarini
      Tarini
      Mar 02 2015 at 4:43 pm

      Hey Rajbinder

      Congratulations on buying that new house! 🙂
      Generally, most builders don’t charge for an NOC for home loan, but this depends solely on the builder’s internal policies. So it seems that there isn’t much that you can do in this case.

  48. Prabir Biswas
    Oct 09 2014 at 1:26 pm
    Reply

    Shubha Bijoya greetings. At present my Home loan is with ICICI bank amounting to Rs. 5,00,000/- & the ROI is 10.75% that was taken in the year 2003 for a repayment term of 20 years (240 instalments). But due to hike in interest rate hike over the years the bank has made several adjustments in EMIs and loan tenures to make the thing going. But despite all their efforts, the Repayment schedule shows that tenure still remains at about 16 long years (192 isntalments) for repayment of that loan. What should I do? Please advise.

    • Tarini
      Tarini
      Oct 09 2014 at 5:26 pm

      Hi Mr. Biswas
      Shubho Bijoya greetings to you too 🙂

      Looks like over the years, your bank has increased the interest rate by increasing loan tenure so that you keep paying the same EMI, only for a longer duration. But this is just a theory, to confirm this, kindly check your amortization schedule.
      Generally, the best thing to do in such a situation would be to switch your home loan to a lower interest rate. At present the lowest interest rate being offered in the market is 10.15%. You can use this calculator ( http://switchme.in/switch-home-loan ) to determine if switching will benefit for you.
      If yo wish to switch, just sign up at the calculator and we will do all the formalities and paper work for you 🙂

    • Abhishek
      Oct 10 2014 at 5:15 pm

      Tarini, Hope you won’t mind asking this.
      I have a loan with HDFC at 10.15%. with current remaining principle at 3215000 with 101 EMIs remaining. This was taken in Dec’2012. Things are going well at this point. However, I have just checked the SBI MaxGain Home Loan. I want to switch my existing loan to maxGain.
      The benefit what I see with this is, instead of making prepayments to save my interest-rates, I can just deposit it in the max-gain account. The advantage I have is of securities in case of emergencies. So do you think it’s worth?

      Secondly, what are your service charges for doing the formalities & paperwork for switching to SBI MaxGain?

    • Tarini
      Tarini
      Oct 10 2014 at 6:13 pm

      Hi Ahbishek
      We would love to assist you in any way possible 🙂
      1. In theory, switching your home loan to maxgain is a good option given the benefits you have pointed out. However, switching involves several costs, which you must weigh against the benefits of switching before taking the decision. Hence, i would advise you to use this calculator to see how much you would save /spend on switching your home loan.
      Calculator: http://switchme.in/switch-home-loan
      (please note that the calculator doesn’t list out SBI Maxgain home loan as a product. Since the interest rates of all home loans offered by SBI are the same, you can consider the charges and savings listed against SBI as those of Maxgain too.)
      2. Our Customer Relations Manager will get in touch with you regarding the charges applicable.

  49. Arun M
    Jul 31 2014 at 7:52 pm
    Reply

    Greetings.. My current loan is with ICICI where my O/S is 500000 and ROI is 10.75% floating. My current EMI is 23000 and remaining period is 23 months.
    Due to personal circumstance, I need to reduce my EMI to approx 5000 with ROI of 10.15%. ICICI is not ready to reduce this, hence I need to switch. Kindly advise how I can do that and which Bank ( would prefer HDFC or SBI )

    • Tarini
      Tarini
      Aug 08 2014 at 7:05 pm

      Hi Arun

      Although switching to a lower interest rate (in this case 10.15%) would help you in this situation, considering 2 years as the remaining tenure of your home loan, most banks would not be interested in taking your loan. Hence, I would advise you that either you prepay your loan to reduce the principal burden or pay a processing fee to ICICI bank to bring you down the interest rate (10.15%) they are currently offering new customers.
      It seems very unlikely that banks would be willing to reduce your EMI to Rs. 5000 :/

  50. SBI Maxgain Home Loan – The New Way To Save | SwitchMe Blog
    Dec 30 2013 at 2:47 pm
    Reply

    […] you can.  Get in touch with your loan manager for the same. Or sign up at SwitchMe.in to switch home loan from the comfort of your home and have us do all the legwork for […]