How to reduce existing home loan roi?

mukulrajchahal

KF Rookie
In june 2023 i took a home loan (from Icici bank)of 30,00,000 at that time my Cibil score was 642 and there was one personal loan showing on my name for 3500 rupees, that too default and no emi paid, because of which i got 11.75 % ROI


Now in October end, that personal loan has been successfully removed from my name (in Cibil report it will not appear) also my Cibil score is also updated to 738


Now i want to reduce this roi with icici, how can i do that ? Also with this Cibil score till what ROI i can get?

Please help
 

ShavirB

Founder
Staff member
Hi, you can simply go and talk to your Bank to reduce the Interest. If they don't agree, negotiate with a different bank to transfer the Loan - Banks will be happy to do this. Mostly the other Bank will give you a competitive interest rate..

As per my assessment you should be able to reduce a min of 0.50%
 

shalugavendra

KF Rookie
Hi, you can simply go and talk to your Bank to reduce the Interest. If they don't agree, negotiate with a different bank to transfer the Loan - Banks will be happy to do this. Mostly the other Bank will give you a competitive interest rate..

As per my assessment you should be able to reduce a min of 0.50%
I asked the samething with SBI, they said once in a year is free . But if you want to change/reduce interest rates now it will charge 6000. Please suggest on this.
 

shashwat

KF Ace
Then I guess I’ll wait it to cross 750, only short by 12 points.
Don't wait. Check with bank/banks anyway. It won't make much difference.

I asked the samething with SBI, they said once in a year is free . But if you want to change/reduce interest rates now it will charge 6000. Please suggest on this.
Most banks have a fee. The home loan interest rate changes every 3 months, but usually not by much. Still, 6000 seems higher. I have tried HDFC and they charged around 2500.
 

anshupandey

KF Rookie
problem with loan transfer is that, every time you transfer the loan new Bank charges a lot of extra fee like stamp charges, Notice of intimation, Registration fee and other charges which can go up to Rs. 50K for a loan amount of 65L , is it worth transferring in that case?
 
problem with loan transfer is that, every time you transfer the loan new Bank charges a lot of extra fee like stamp charges, Notice of intimation, Registration fee and other charges which can go up to Rs. 50K for a loan amount of 65L , is it worth transferring in that case?
First you comparing EMI , if your EMI is reduce so you get benifit
 
Hi, you can simply go and talk to your Bank to reduce the Interest. If they don't agree, negotiate with a different bank to transfer the Loan - Banks will be happy to do this. Mostly the other Bank will give you a competitive interest rate..

As per my assessment you should be able to reduce a min of 0.50%
Most of the bank have cooling period to take over the loan from other bank this will not work as of my knowledge for atleast 1 year.i suggest you to wait for atleast 1 year than check with other banks to take over your loan or negotiate with current lender
 

Tazhim

KF Rookie
Hi, you can simply go and talk to your Bank to reduce the Interest. If they don't agree, negotiate with a different bank to transfer the Loan - Banks will be happy to do this. Mostly the other Bank will give you a competitive interest rate..

As per my assessment you should be able to reduce a min of 0.50%
 

ShavirB

Founder
Staff member
Most of the bank have cooling period to take over the loan from other bank this will not work as of my knowledge for atleast 1 year.i suggest you to wait for atleast 1 year than check with other banks to take over your loan or negotiate with current lender
Hi, I think Cooling Period works slightly differently. It gives borrowers the option of exiting the loan and not the other way round. Banks are free to decide the duration of this cooling period but it should be min 3 days as per the RBI
 
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