SUGGESTION FOR HOME LOAN TRANSFER

[Macklon]

Hello everyone. Can anyone help me to decide if I should Transfer my home loan? Currently I am having home Loan In SBI bank with roi 9.25%. Due to their poor customer service I am thinking of transferring to Bank of Baroda where roi is 8.40%.

1)Are there gonna be any charges involved during this transfer?

2) Is this gonna a good decision?

 

[Personal Finance by Nish…]

Home loan BT from SBI to BOB might be a good decision, considering the lower interest rate of 8.40% compared to your current 9.25% rate.

Charges Involved
Processing Fees Bank of Baroda charges 0.25% to 2% of the loan amount as processing fees.

Foreclosure Charges SBI may charge 0.5% to 1% of the outstanding amount for closing your existing loan early.

Legal and Documentation Fees These may apply depending on the agreement with both banks.


Benefits of transfer
Lower Interest Rate Saving 0.85% on your loan can reduce your monthly EMI burden and overall interest payments.

Better Loan Features Bank of Baroda might offer more attractive features, such as flexible repayment options or additional top-up loans.

Calculate the total costs involved and compare them to the potential savings from the lower interest rate. Consider factors like: Outstanding Loan Amount
Remaining Loan Tenure
New Loan Terms

Pro Tip
Use online home loan balance transfer calculators to estimate the benefits and costs. If the savings outweigh the costs, transferring your loan might be a good decision.

Thanks