I have a MaxGain home loan account for 25L from SBI on the base rate basis in 2015. I have been adding surplus funds whenever possible which accumulated to some amount(say 3L). The outstanding balance is now 21L. Now if I convert my account to MCLR: What will be the drawing power on the newly converted account – 21L or 22L or 24L. If it is 21L, it means that I will not be able to withdraw my surplus funds hereafter. On What amount is my conversion charge calculated – 25L or 24L or 22L or 21L? Thanks, Manikanta
When you are moving from base rate to MCLR based system, then the outstanding principal is only considered for the consideration or moving charges. Also, rest of all features of the loan will remain same. Drawing power is nothing but the outstanding principal. Hence, it will remain as Rs.21 lakh ONLY.
So it means that the surplus amount that i have credited till today cant be withdrawn from the converted account?