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Home Loans and Interest Rates

by | Aug 21, 2015 | Finance, Loans, Real Estate

This is for those who have taken a home loan from HDFC. It may be applicable to loans from other institutions, but I’m not sure.
If you have taken a loan a couple of years back, your interest rate should be around 10.45 – 11%. Now it has come down to around 9.85%. One would assume that they lower the interest rate automatically. Not so!

You have to go to the nearest HDFC loan office and ask to ‘Buy the spread’. Then after paying a few thousand rupees, they will reduce the interest rate on the loan. One of our collegues just did it. In fact, I would suggest dropping in on them every 6 months or so and asking to buy the spread. If it drops the interest rate, then why not?

That brings me to another point. Shouldn’t they come to you and ‘Sell the spread’ before they increase the rate?

Niranjan Bangera
36 Properties Pvt Ltd
09870215520

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Written By: niranjan

Financially Stupid Niranjan

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