CcMaverick
TF Buzz
I am exploring for balance transfer of HL from HDFC (8.2%) to a OD linked HL with SBI/BOB/BOI/Others.
Most of the banks have a higher rate. BOB offers 8.4 and BOI offers 8.35 (8.15 with cibil > 825, mine is 805).
Plus there are processing charges & stamp duty etc. which comes to ~40K.
BOB said, they offered it at 8.2 till 31st March but they have increased in new FY.
I had following questions:
Most of the banks have a higher rate. BOB offers 8.4 and BOI offers 8.35 (8.15 with cibil > 825, mine is 805).
Plus there are processing charges & stamp duty etc. which comes to ~40K.
BOB said, they offered it at 8.2 till 31st March but they have increased in new FY.
I had following questions:
- Should I go for Balance transfer in first place? Are there any hidden clauses? I can move my emergency fund/FDs to OD and on paper it looks very good.
- Will the banks bring down the rate in later months? Like BOB said they offered 8.2 till 31st March perhaps due to FY end.
- Even if I go with any of banks with a said rate of 8.4, do they increase/decrease in accordance with RBI repo rates? I see people bashing HDFC, but after merger of HDFC and HDFC bank, they seem to follow RBI guidelines wrt rates. My fear is they offer me 8.4 and then increase it in few months.
- If i go with 8.4, would i be able to negotiate a better rate in later months? I did that with HDFC few years back but that time they were not repo linked with RBI.