Dear bash, I have taken 20L home loan from axis bank , paying 20300 as EMi, the interest rate was 10.75%, later went up to 11% , now got reduced to 10.65%, 34 emis are gone.now I am trying to transfer the loan as now banks are offering 9.90@% interest, also plan to take 5 L top up . which I need to close the jewel loan ( 13% interest, and only I am paying the interest,loan amt remains same). Is it profitable to do the balance transfer, after 34 emis, ( total loan tenure is 20 yrs), that mot charges was not there, now bank people says mot charges are compulsory, considering all these , is it profitable? Or if i transfer the loan and make it 15 yrs as term, will it be profitable? Need your advice?
Abhi-The difference between existing loan interest to new loan is 0.75%. Anyhow According to below shared RBI ruling, if your home loan is floating rate then banks can’t charge any pre-closure charges. Hence, check for the processing fees involved for home loan and I think it is wise to offload 0.75% interest difference as well as Jewel Loan which is costing you at 13%. You can increase your EMI by reducing the tenure and can easily come out of Home Loan at the earliest. However, check whether the new loan is floating or fixed interest offering.