Business: Private banks are ahead in passing on the benefits of reduction in interest rates on loans to the customers. Private banks have reduced the average interest rates on new loans by 76 basis points (0.76%) and the average interest rates on existing loans by 63 basis points (0.63%).

Government banks have reduced the average interest rate on new loans and existing ones by only half a percent. If your bank is not offering you the benefit of low interest rates, there is no need to stick with the same bank. You can transfer your home loan to someone who offers lower interest rates.

What is the transfer process?

• To transfer your existing home loan to a new bank, you first need to pay the outstanding amount to the old bank. Only then will the old bank return the property documents to you.
• Here the new bank will not issue the check without taking the property documents.
• To get out of this difficulty, you can ask your old bank to write a letter in the name of the new bank. It should contain a list of all the documents related to your property, the amount outstanding and the return of the property documents upon payment.
• According to Reserve Bank of India rules, on the basis of this letter, the new bank can issue a check in the name of the old bank.

but keep one thing in mind

• The new bank will be ready to give you a loan only when the track record of your existing home loan is good i.e. your credit history should also be good.

Keep in mind the fees

• To transfer a home loan from one bank to another, you will also have to pay some fees to both the banks.
• The first fee is the prepayment charge that the existing bank will charge you. Although RBI has directed banks not to charge prepayment penalty on all types of floating rate loans including home loans, some banks are still charging it.
• The second charge is the processing fee, which will be charged by the bank with which you are taking your loan. It can range from 0.2 percent to 0.75 percent depending on your profile.

experts said
Always keep an eye on the interest rate. Also check out the special offers coming from banks from time to time. You may have to pay stamp duty, registry fees and valuation charges when the new bank re-values ​​the property. Make sure to calculate all the fees and expenses before transferring the loan.
– Balwant Jain, Personal Finance Expert

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Quarterly results/announcement of companies

• October 27: Indian Oil, Bajaj Housing Finance, Lodha Developers, Bata India
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