HDFC home loan conversion

[creditcardfetish]

Hello Community,


I have a home loan with HDFC Bank with current Rate of Interest 9.25%.

Recently I had a call with HDFC home loan customer care and they offered me a interest rate of 8.35% with a conversion fee of rupees 5900.

Some folks suggested that the fee can also be waived off, if it is possible how may I do it? The branch is in a different city and I don't have any interaction with the branch manager.

 

[chenrichy]

Hello Community,


I have a home loan with HDFC Bank with current Rate of Interest 9.25%.

Recently I had a call with HDFC home loan customer care and they offered me a interest rate of 8.35% with a conversion fee of rupees 5900.

Some folks suggested that the fee can also be waived off, if it is possible how may I do it? The branch is in a different city and I don't have any interaction with the branch manager.

How the fees will be waived off?

+1

 

[Nagendran]

Hello Community,


I have a home loan with HDFC Bank with current Rate of Interest 9.25%.

Recently I had a call with HDFC home loan customer care and they offered me a interest rate of 8.35% with a conversion fee of rupees 5900.

Some folks suggested that the fee can also be waived off, if it is possible how may I do it? The branch is in a different city and I don't have any interaction with the branch manager.

I did similar conversion from 9.55% to 8.45% interest rate by paying around Rs.3900. As per hdfc.com, the conversion is charged either .5% of principal outstanding or Rs.5000+ 18%GST = Rs.5900 whichever is lower. I have blog on this with more details here

 

[paresh22]

Can someone confirm about hdfc bank like if you go for conversion, will this converted new interest rate remain for 1 year only or how it will change in future?

 

[technom]

Can someone confirm about hdfc bank like if you go for conversion, will this converted new interest rate remain for 1 year only or how it will change in future?

That rate of 8.35% is when you convert to monthly cycle from what I know. Check with the phone bankers and they should be able to confirm it.

Rates vary (increases) if the update cycle of 3 months or 1 year is opted + they usually don't give those options in the first place

Hello Community,


I have a home loan with HDFC Bank with current Rate of Interest 9.25%.

Recently I had a call with HDFC home loan customer care and they offered me a interest rate of 8.35% with a conversion fee of rupees 5900.

Some folks suggested that the fee can also be waived off, if it is possible how may I do it? The branch is in a different city and I don't have any interaction with the branch manager.

They don't waive the conversion fee in our experience. The benefits outweigh the small fee by a great extent in long term and so we shouldn't worry about it

 

[SMGROW]

Can someone confirm about hdfc bank like if you go for conversion, will this converted new interest rate remain for 1 year only or how it will change in future?

Is your home loan rate linked to bank's MCLR? If it is linked to MCLR then it may go up or down based on the cost of funds for bank.

 

[paresh22]

Is your home loan rate linked to bank's MCLR? If it is linked to MCLR then it may go up or down based on the cost of funds for bank.

Thanks. Got it.

 

[Vahid Vee]

Hello Community,


I have a home loan with HDFC Bank with current Rate of Interest 9.25%.

Recently I had a call with HDFC home loan customer care and they offered me a interest rate of 8.35% with a conversion fee of rupees 5900.

Some folks suggested that the fee can also be waived off, if it is possible how may I do it? The branch is in a different city and I don't have any interaction with the branch manager.

There is no chance for a waiver of the conversion fee. I didn't get it anyway. I was required to pay an amount of around INR 3000, but there was a reduction of INR 910 in each EMI for the rest of the years. So, I think, if there are no RBI price hikes, I will save around 90K overall.

 

[paresh22]

There is no chance for a waiver of the conversion fee. I didn't get it anyway. I was required to pay an amount of around INR 3000, but there was a reduction of INR 910 in each EMI for the rest of the years. So, I think, if there are no RBI price hikes, I will save around 90K overall.

Does this facility is available online? or one need to visit nearby hdfc branch to convert this?

 

[praveensudhakaran]

I have sent an email to the hdfc customer care for conversion, they charged 3000+GST as fees. Since I retained the same EMI, my loan tenure become 18 years from 29 years.

 

[ayush0010]

I have sent an email to the hdfc customer care for conversion, they charged 3000+GST as fees. Since I retained the same EMI, my loan tenure become 18 years from 29 years.

Do we get the option to keep the same EMI?
When I check online, the rate offered is lower than what I currently have but the tenure is pre-selected, with no option to modify.

 

[praveensudhakaran]

Do we get the option to keep the same EMI?
When I check online, the rate offered is lower than what I currently have but the tenure is pre-selected, with no option to modify.

Yes, it is possible. Please contact them via email. Keeping the same EMI with reduced rate is better for us and bad for the bank, they won't show it.

 

[jay_ccjunkie_21]

I just reduced the HDFC Home Loan EMI interest rate from 10.35% to 8.40% by paying a fee of Rs. 2900. Good part is HDFC allowed a change in interest rate instead of a change in tenure. Now my home loan tenure has been reduced to 152 months from the earlier 190 months.

 

[chenrichy]

I just reduced the HDFC Home Loan EMI interest rate from 10.35% to 8.40% by paying a fee of Rs. 2900. Good part is HDFC allowed a change in interest rate instead of a change in tenure. Now my home loan tenure has been reduced to 152 months from the earlier 190 months.

What Is the procedure for this explain pls

 

[jay_ccjunkie_21]

What Is the procedure for this explain pls

Login to your HDFC Home loan account by visiting the Home Loan website of HDFC. Enter your Loan Account Number and you shall be presented with what is your loan disbursement amount along with your prevailing interest rate levied by Bank. On the Home page towards left hand side under Request tab - You should see an option mentioning "Conversion Inquiry". Click on it and send an email to HDFC as directed by following the instructions.

You will receive an email from HDFC within 48 hours to pay a small conversion fee with the revised interest rate and if any reduction in your EMI amount. Pay the conversion fee and it's done.

You will receive another email from them confirming the newer interest rate / EMI amount.

 

[dvs]

Hi All,
Need your guidance.
I am 46 years old and want to clear all my liabilities as soon as possible. I have HDFC home loan, loan amount is 23.7 lacs took in 2015. Current principal outstanding is 16 lacs with EMI of 25K. Current interest rate is 10.75%. So I have 2-3 queries. I am trying for loan balance transfer to other bank. Checked with SBI, offering 8.40% interest, Monthly reducing. Saraswat bank is saying 8.6% daily reducing balance. Then today I saw the HDFC banks Conversion option with 8.50% for 84 months.
My queries are as follows;
a. Should I move from HDFC to other bank, if yes SBI better or Saraswat bank better. OR you suggest any other bank.
b. Till date HDFC was charging interest considering the loan tenure of 20 years, If I move to other bank I will need to foreclose the HDFC loan account, that means I just used HDFC loan money for 9 years. Will HDFC consider this and convert my overall paid EMI and reduce my principal as the interest rate should be lower for 9 years comparing to 20 years
c. If I opt for HDFC conversion option for how many months or years my interest rate will be at 8.5% or they will again start increasing it quarterly.
d. I want to keep the EMI same and reduce the tenure. Rather increase the EMI (from 25K to 30K) to reduce the tenure. Not sure keep the EMI same and pay additional Rs 5000 per month separately to reduce the principal. I heard that whatever you pay over and above the EMI that get reduced from principal. What is the best option?

I know too many question but I need experts guidance. Your guidance is very much important.

Regards,
Dipak

 

[praveensudhakaran]

Hi All,
Need your guidance.
I am 46 years old and want to clear all my liabilities as soon as possible. I have HDFC home loan, loan amount is 23.7 lacs took in 2015. Current principal outstanding is 16 lacs with EMI of 25K. Current interest rate is 10.75%. So I have 2-3 queries. I am trying for loan balance transfer to other bank. Checked with SBI, offering 8.40% interest, Monthly reducing. Saraswat bank is saying 8.6% daily reducing balance. Then today I saw the HDFC banks Conversion option with 8.50% for 84 months.
My queries are as follows;
a. Should I move from HDFC to other bank, if yes SBI better or Saraswat bank better. OR you suggest any other bank.
b. Till date HDFC was charging interest considering the loan tenure of 20 years, If I move to other bank I will need to foreclose the HDFC loan account, that means I just used HDFC loan money for 9 years. Will HDFC consider this and convert my overall paid EMI and reduce my principal as the interest rate should be lower for 9 years comparing to 20 years
c. If I opt for HDFC conversion option for how many months or years my interest rate will be at 8.5% or they will again start increasing it quarterly.
d. I want to keep the EMI same and reduce the tenure. Rather increase the EMI (from 25K to 30K) to reduce the tenure. Not sure keep the EMI same and pay additional Rs 5000 per month separately to reduce the principal. I heard that whatever you pay over and above the EMI that get reduced from principal. What is the best option?

I know too many question but I need experts guidance. Your guidance is very much important.

Regards,
Dipak

From my knowledge,

a. Should I move from HDFC to other bank, if yes SBI better or Saraswat bank better. OR you suggest any other bank. - After merger HDFC is no longer a separate institution, it is HDFC Bank itself. SBI will give you an advantage in flexible repayment, but do the analysis in profit you are getting.

b. Till date HDFC was charging interest considering the loan tenure of 20 years, If I move to other bank I will need to foreclose the HDFC loan account, that means I just used HDFC loan money for 9 years. Will HDFC consider this and convert my overall paid EMI and reduce my principal as the interest rate should be lower for 9 years comparing to 20 years - No, whatever you paid will principal+interest, they are not going to calculate your entire EMI as principal. The current interest rate 8.5% and by paying a small conversion fee(around 3000) around this time last year, you could have reduced 2-3 years in your repayment period. But better late than never, do it asap.

c. If I opt for HDFC conversion option for how many months or years my interest rate will be at 8.5% or they will again start increasing it quarterly. - It will stay the same as long as the repo rate remains same. Always please keep an eye on RBI repo rate.

d. I want to keep the EMI same and reduce the tenure. Rather increase the EMI (from 25K to 30K) to reduce the tenure. Not sure keep the EMI same and pay additional Rs 5000 per month separately to reduce the principal. I heard that whatever you pay over and above the EMI that get reduced from principal. What is the best option? - keep the EMI the same/more and reduce the tenure, but if you can make prepayments over and above EMI, do it periodically. But other than SBI, I don't know which other banks provide the option of pay as you wish more than the EMI. Other members can pitch in.

 

[arun4455]

Hi All,
Need your guidance.
I am 46 years old and want to clear all my liabilities as soon as possible. I have HDFC home loan, loan amount is 23.7 lacs took in 2015. Current principal outstanding is 16 lacs with EMI of 25K. Current interest rate is 10.75%. So I have 2-3 queries. I am trying for loan balance transfer to other bank. Checked with SBI, offering 8.40% interest, Monthly reducing. Saraswat bank is saying 8.6% daily reducing balance. Then today I saw the HDFC banks Conversion option with 8.50% for 84 months.
My queries are as follows;
a. Should I move from HDFC to other bank, if yes SBI better or Saraswat bank better. OR you suggest any other bank.
b. Till date HDFC was charging interest considering the loan tenure of 20 years, If I move to other bank I will need to foreclose the HDFC loan account, that means I just used HDFC loan money for 9 years. Will HDFC consider this and convert my overall paid EMI and reduce my principal as the interest rate should be lower for 9 years comparing to 20 years
c. If I opt for HDFC conversion option for how many months or years my interest rate will be at 8.5% or they will again start increasing it quarterly.
d. I want to keep the EMI same and reduce the tenure. Rather increase the EMI (from 25K to 30K) to reduce the tenure. Not sure keep the EMI same and pay additional Rs 5000 per month separately to reduce the principal. I heard that whatever you pay over and above the EMI that get reduced from principal. What is the best option?

I know too many question but I need experts guidance. Your guidance is very much important.

Regards,
Dipak

I would suggest to go with SBI if you want to prepay your loan. SBI Loan account will be added in your netbanking and you would be able to prepay as much amount whenever you want to prepay without any limitation. The loan amount will get adjusted automatically from the date of payment.

 

[dvs]

From my knowledge,

a. Should I move from HDFC to other bank, if yes SBI better or Saraswat bank better. OR you suggest any other bank. - After merger HDFC is no longer a separate institution, it is HDFC Bank itself. SBI will give you an advantage in flexible repayment, but do the analysis in profit you are getting.

b. Till date HDFC was charging interest considering the loan tenure of 20 years, If I move to other bank I will need to foreclose the HDFC loan account, that means I just used HDFC loan money for 9 years. Will HDFC consider this and convert my overall paid EMI and reduce my principal as the interest rate should be lower for 9 years comparing to 20 years - No, whatever you paid will principal+interest, they are not going to calculate your entire EMI as principal. The current interest rate 8.5% and by paying a small conversion fee(around 3000) around this time last year, you could have reduced 2-3 years in your repayment period. But better late than never, do it asap.

c. If I opt for HDFC conversion option for how many months or years my interest rate will be at 8.5% or they will again start increasing it quarterly. - It will stay the same as long as the repo rate remains same. Always please keep an eye on RBI repo rate.

d. I want to keep the EMI same and reduce the tenure. Rather increase the EMI (from 25K to 30K) to reduce the tenure. Not sure keep the EMI same and pay additional Rs 5000 per month separately to reduce the principal. I heard that whatever you pay over and above the EMI that get reduced from principal. What is the best option? - keep the EMI the same/more and reduce the tenure, but if you can make prepayments over and above EMI, do it periodically. But other than SBI, I don't know which other banks provide the option of pay as you wish more than the EMI. Other members can pitch in.

Thanks for valueable inputs Praveen. I will for 1 more week for others to guide if not i will prefer SBI

 

[dvs]

Just received update from saraswat bank on their offerings
- Rate of interest 8.6%
- We are having daily reducing balance
- No prepayment charges
- Shareholding will be there with dividend declared 15-20% every year.
- No processing fees for loans upto 35 lakhs
- No hidden charges
- And last but not least is our customer service.

2-3 things i want to understand that
- benefit of daily reducing balance
- what shareholding means
- and the dividend