NEWS & ADVICE : HOME LOANS
Loan ‘switch’ –the new buzz in home loan segment
By Joseph Samson
Mar 26, 2012
Print    Email    RSS   

The recent times are seeing turmoil with interest rates on loans heading for a forward leap. In this trend of rising rates, home loan providers have come up with yet another facility to woo borrowers; the ‘home loan switch' facility.

The facility allows existing home loan borrowers to opt for a switch from their existing home loan to another loan giving better rates of interest. The switch can be done by the payment of a onetime fee which is 0.50-1% of the outstanding loan amount.

The largest lender of the country, State Bank of India has introduced this product. Other lenders to have done so include Central Bank of India and Union Bank of India.

Customers however cannot avail this facility on loans which have been taken on complete floating basis.

"In a week's time, we will take a decision at our asset liability committee (ALCO) meeting in finalizing our switch product," Ram Sangapure, General Manager (retail banking) at Central Bank of India said.

"Initially, there may not be many takers of this product. However, we want to be prepared for the future. If interest rates start falling in the next three months, our existing home loan customers can benefit from it. We may be charging one time fee of 50-100 basis points to our customers, who want to avail the new rate," he said.

Housing finance major HDFC has been said to have already having this facility since some time now.


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Are you ready to file your taxes? Please...
The home loans interest rate story: The...
Can we claim tax benefits on home loan and...
Carnival of Indian Personal Finance Blogs #1
Income Tax Benefits on Joint Home Loans


Find the balance amount of principal amount of loan...
PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive