Home Loan Conversion Enquiry charges too high

aasimenator

aasimenator

MCITP 2008
Reseller
I have an ongoing home loan from HDFC, currently, it's at 9.25%. below is the interest rate movement for my loan a/c (not sure how accurate)
1687359623448.png

I've previously once done this conversion enquiry to reduce my interest rate, at that point the charges were reasonable at Rs. 3000 approx.
But currently, charges are double at Rs. 6000, to lower from 9.25% to 8.70% problem is I don't know since when this option was available to me as I don't log in and check that frequently, and I also don't know if I accept the conversion enquiry for how long this rate would be applicable. e.g., If the rate is only applicable for the next 3 months, I would have only saved Rs. 5736/- by spending Rs. 6000/-

So the question is should I bite the bullet and accept it or ignore it? is there any news of rates increasing again in the near future (6M - 1Y)?
 
aasimenator said:
I have an ongoing home loan from HDFC, currently, it's at 9.25%. below is the interest rate movement for my loan a/c (not sure how accurate)
View attachment 171208
I've previously once done this conversion enquiry to reduce my interest rate, at that point the charges were reasonable at Rs. 3000 approx.
But currently, charges are double at Rs. 6000, to lower from 9.25% to 8.70% problem is I don't know since when this option was available to me as I don't log in and check that frequently, and I also don't know if I accept the conversion enquiry for how long this rate would be applicable. e.g., If the rate is only applicable for the next 3 months, I would have only saved Rs. 5736/- by spending Rs. 6000/-

So the question is should I bite the bullet and accept it or ignore it? is there any news of rates increasing again in the near future (6M - 1Y)?
Click to expand...
Home loans are on floating rates so 6 m or a year its bound to increasing esp. given the current situations.. My home loan rate rose from 6.5 to 9.2% and I closed it in this month only just within 2 yrs span.
 
General consensus is that interest rates have peaked and RBI would cut rates in the future. When and how much they are cut (and if banks even choose to pass these cut to consumers) is anyone's guess.
 
nRiTeCh said:
Home loans are on floating rates so 6 m or a year its bound to increasing esp. given the current situations.. My home loan rate rose from 6.5 to 9.2% and I closed it in this month only just within 2 yrs span.
Click to expand...
How much loan did you take (principal amount) and did you get family help in prepaying the loan because 2 years seems quite short time to prepay a home loan unless you got a lottery.
 
aasimenator said:
I've previously once done this conversion enquiry to reduce my interest rate, at that point the charges were reasonable at Rs. 3000 approx.
But currently, charges are double at Rs. 6000, to lower from 9.25% to 8.70% problem is I don't know since when this option was available to me as I don't log in and check that frequently, and I also don't know if I accept the conversion enquiry for how long this rate would be applicable. e.g., If the rate is only applicable for the next 3 months, I would have only saved Rs. 5736/- by spending Rs. 6000/-
Click to expand...
1. Is this charges only for enquiry or actual change of interest rate?
2. Let's say u did conversion to lower interest rate, next time when the rate gets changed, base rate will be from 8.70, not at the current rate of 9.25,so u will have savings. Rate change will be incremental, means it will be like current rate +0.1 or current rate +0.2 etc, not like change to 9.5, 9.6 etc.
3. If possible, try to shift to public banks like sbi or bank of baroda, they provide better rates and charges like reset of loans etc will be lesser.
Above banks has loans linked to savings accounts like Bob home loan advantage, read up on them.
Also now a days, loans are linked to repo rate, so this reset drama is not needed which used to be the case when MCLR was predominant. Know about ur loan !!!
 
frozenscotch said:
1. Is this charges only for enquiry or actual change of interest rate?
2. Let's say u did conversion to lower interest rate, next time when the rate gets changed, base rate will be from 8.70, not at the current rate of 9.25,so u will have savings. Rate change will be incremental, means it will be like current rate +0.1 or current rate +0.2 etc, not like change to 9.5, 9.6 etc.
3. If possible, try to shift to public banks like sbi or bank of baroda, they provide better rates and charges like reset of loans etc will be lesser.
Above banks has loans linked to savings accounts like Bob home loan advantage, read up on them.
Also now a days, loans are linked to repo rate, so this reset drama is not needed which used to be the case when MCLR was predominant. Know about ur loan !!!
Click to expand...
1. it is for the actual change not just the enquiry.
2. I am not sure, I will contact them to find out.
3. I have had a banking relationship with HDFC for the past 12 years, I've not needed to submit any documentation for the home loan at all other than what was required from the Developer If I switch to SBI or any other PSU then I have to submit a ton of documentation plus also open up an account and transfer funds to it (What I've other from friends who have a home loan from SBI but don't have an account in SBI)
 
Here is How you deal with HDFC.

1. Drop them a Mail to them, Stop following up on website. It is as useful as speaking to a rock. (Do this from primary holders mail ID)
Example: "I am requesting an interest rate conversion for my home loan account XXXXXXXXX. As the interest rate has climbed to 9.15%. Could you please help me with this? I would Like to keep the EMI at XXXXX Rs and reduce the term."

Now some human will see your mail, and they will send you a PayNimo Link, It may be 990+Tax / 2999+Tax or something to reduce your rate. I got mine down from 9.15% to 8.45% for 1180, Also previously have gotten then down at marginal costs as well, Never paid the 5K-6K they showed on website.

2. Check other banks, Try to move away from HDFC, Check Axis/ICICI. Last time HDFC was acting like like they were helpless I asked for a Foreclosure letter with HDFC, Spent some 3K with ICICI guys to start my loan processing and the magically interest rates came down from 9.xx to 7.xx during covid and down to 6.xx post covid in HDFC. Now they are 8.45%. (Be aware, This is a move to other bank if they don't agree. So just don't play with this unless you are ready for some serious costs immediately)

Home Loans will drag on, You have to play the game. It's the noisiest baby gets the toys?

Mine for reference:
1687426227556.png
 
enthusiast29 said:
How much loan did you take (principal amount) and did you get family help in prepaying the loan because 2 years seems quite short time to prepay a home loan unless you got a lottery.
Click to expand...
Principal was 26L and with interest it was 39L.
In last 2 yrs I paid around 7lacs incl. [P+I]
Yet the Principal balance was some 21.xx L during the closure.
I put my savings as well as some borrowings and closed it for Good!
 
nRiTeCh said:
Principal was 26L and with interest it was 39L.
In last 2 yrs I paid around 7lacs incl. [P+I]
Yet the Principal balance was some 21.xx L during the closure.
I put my savings as well as some borrowings and closed it for Good!
Click to expand...
for small amounts yeah it's okay you can stretch it and ask friends or family for support, but with big loans, no one will come forward & you can't actually blame them anyways.
My loan amount is 70Lacs :facepalm:
Lozil said:
Here is How you deal with HDFC.

1. Drop them a Mail to them, Stop following up on website. It is as useful as speaking to a rock. (Do this from primary holders mail ID)
Example: "I am requesting an interest rate conversion for my home loan account XXXXXXXXX. As the interest rate has climbed to 9.15%. Could you please help me with this? I would Like to keep the EMI at XXXXX Rs and reduce the term."

Now some human will see your mail, and they will send you a PayNimo Link, It may be 990+Tax / 2999+Tax or something to reduce your rate. I got mine down from 9.15% to 8.45% for 1180, Also previously have gotten then down at marginal costs as well, Never paid the 5K-6K they showed on website.

2. Check other banks, Try to move away from HDFC, Check Axis/ICICI. Last time HDFC was acting like like they were helpless I asked for a Foreclosure letter with HDFC, Spent some 3K with ICICI guys to start my loan processing and the magically interest rates came down from 9.xx to 7.xx during covid and down to 6.xx post covid in HDFC. Now they are 8.45%. (Be aware, This is a move to other bank if they don't agree. So just don't play with this unless you are ready for some serious costs immediately)

Home Loans will drag on, You have to play the game. It's the noisiest baby gets the toys?
Click to expand...
Thank you for the tips. I will ask them directly, if they don't budge I will move elsewhere.
 
aasimenator said:
for small amounts yeah it's okay you can stretch it and ask friends or family for support, but with big loans, no one will come forward & you can't actually blame them anyways.
My loan amount is 70Lacs :facepalm:
Click to expand...
So, 26Lacs seems small amount to you?
Anything above 5 lacs is a huge amount esp. 10L+
My original loans was supposed to be for 51L but paid 25L and reduced it to 26 and now thankfully NIL.

It was for 10yrs but the current inflation sucked and esp. Kotak the shittiest bank ever I had no interest to pay any interest.
 
Thanks to all those who responded, I directly contacted HDFC customer department and enquired about reducing the interest rate they gave me the same rate as it was advertised on my loan account but at a much lower fee that that shown on their website.
 
nRiTeCh said:
Principal was 26L and with interest it was 39L.
In last 2 yrs I paid around 7lacs incl. [P+I]
Yet the Principal balance was some 21.xx L during the closure.
I put my savings as well as some borrowings and closed it for Good!
Click to expand...
Only thing i'd like to add is
Loan bad
 
aasimenator said:
Thanks to all those who responded, I directly contacted HDFC customer department and enquired about reducing the interest rate they gave me the same rate as it was advertised on my loan account but at a much lower fee that that shown on their website.
Click to expand...
So you got 8.7 rate now? What are the charges?
 
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