Does home loan Conversion Enquiry actually reduce interest paid to the bank?

raunak

KF Rookie
If my bank is offering conversion from 8.85% to 8.55% on a home loan, as of now 51 months are pending to complete the loan, and post-conversion it says 60 months as the term. Should i opt it and convert?
 
If my bank is offering conversion from 8.85% to 8.55% on a home loan, as of now 51 months are pending to complete the loan, and post-conversion it says 60 months as the term. Should i opt it and convert?
It depends if you are comfortable with your current EMI.means you have no issue of liquid fund to pay your Emi then you should be stick to your current loan.untill and unless you want to reduce your emi don't opt for conversion.it reduce your principal payment and increase your interest payment.
 

Tazhim

KF Rookie
Basically it allows the existing customer to change the spread ( Actual Interest Rate= RPLR-Spread) so that the actual interest rate can be lowered ( same as the interest rate offered to new customers). You need to pay 0.25% of outstanding principal as fees to HDFC ( include Service Tax too).
 
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