Right Time To Switch Your Home Loans

After the reduction, banks followed the interest rate action to cut base rates. It is good news for the home loans borrowers, since the home loans are linked to the base rates system. Base Rate System is for the banks to set a level of minimum interest rates charged while giving out the loans

If you have home loans with one bank, if you are looking to switch to another bank, probably you will have to pay a penalty of some percentage of the outstanding loan amount to that bank.

kaikista edullisin pikavippi to understand the gain on switching the home loans, lets look into the basic example.  If you have taken a loan for Rs. 100000 for 5 years from SBI early this year. You would be paying Rs. 2150 as the monthly EMI. Now, you will have to pay Rs. 2137 after the 25 basis point cut. If it is Rs. 30 lakh, Ts. 390 will be save every month.  When the amount is increased, the EMI also still get lowered.

Existing customers can switch to the lower EMI options, since there is no pre payment charges for the home loans. Thanks to RBI for abolishing the pre closure charges on the home loans. This will be more useful only when the difference is more than 50 basis points. The savings will be higher when the new bank offers very low interest rates.

Learn everything about home loans on the home loans and income tax benefits, various types of home loans, joint home loans, etc

It is good time for the home loan customers to think about the reducing the EMI burden by switching to the suitable banks. Note that, the interest rates may further go down in the coming days, you may wait for some more time. Do the good analysis, before making the switch. If you have any doubts, please post it in the comments section.

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