Home Loan Interest Not Reduced

[raghumahajan]

My Spouse(F) having home loan with her mother at SBI branch from last 3 years. Initial interest was 6.9% due to various offers like women only, first property and cibil . the interest rate got increased to 9.3.
But after latest repo rate reduction , it is still at 9.05. As per some information, SBI is issuing loans at around 8.5% now. We have asked bank to reduce our interest too, but they are asking some 5000+900 GST to run cibil check to do the same.
What should be my next steps.?

 

[neo.puneet]

Ditch SBI and take your loan somewhere else and you don't have to deal with SBI again(this is the main perk) - i did this in Nov

 

[akash2401akash2401 is verified member.]

My Spouse(F) having home loan with her mother at SBI branch from last 3 years. Initial interest was 6.9% due to various offers like women only, first property and cibil . the interest rate got increased to 9.3.
But after latest repo rate reduction , it is still at 9.05. As per some information, SBI is issuing loans at around 8.5% now. We have asked bank to reduce our interest too, but they are asking some 5000+900 GST to run cibil check to do the same.
What should be my next steps.?

If u want to get the interest rate reduced you need to pay the fees.
This fee is standard across all banks though amount may vary.
SBI is the biggest home loan lender and it can give you the lowest interest rate.

 

[msd07]

go to bank..pay mclr rate...
Sbi has advantage of transferring any extra amt to loan acct whenever we want...

 

[raghumahajan]

go to bank..pay mclr rate...
Sbi has advantage of transferring any extra amt to loan acct whenever we want...

Didn't get you

 

[msd07]

Didn't get you

SBI normally takes some MCLR fee to reduce the interest rate. Go to branch and talk to manager about this...

 

[msd07]

Didn't get you

Is it good to change an existing SBI home loan interest at the base rate of 9.25% to an MCLR interest rate of 8.80% with Rs. 7,500 conversion charges? - Rediff Gurus

Switching from a 9.25% base rate to an 8.80% MCLR rate on your SBI home loan could reduce your interest costs, given a 0.45% rate reduction. This switch is...

gurus.rediff.com

chk this

 

[Teesa]

I took loan from sbi same as your spouse. By 2022 March, interest rate is around 7%, after increase in repo rate frequent interval, it went up to 9.2%. By Dec 2023 I approached loan officer at my sbi branch and asked for interest reduction. Written a request letter and follow up with him for about 2 months. They added 5900 to my loan account as mentioned in this thread after checking cibil. And reduced my interest rate to 8.4% with effect from March 2024. Now it's further reduced to 8.15% due to recent reduction in repo rate by 25bps. Approach branch regularly and ask for interest reduction. If you can get the loan officer phone number it's easier to followup.

 

[raghumahajan]

But on increase will these rate increase too?
What is better CIBIL check to reduce rate by 1% or shifting to MCLR rate from repo rate?

 

[panu24]

You should be having your homeloan RLLR based and not MCLR based.

 

[raghumahajan]

You should be having your homeloan RLLR based and not MCLR based.

it is repo based

 

[panu24]

it is repo based

strange then. I got my SBI homeloan rate reduced last month due to recent reporate change automatically.

 

[raghumahajan]

strange then. I got my SBI homeloan rate reduced last month due to recent reporate change automatically.

It is reduced from 9.3 to 9.05
But currently, SBI is offering home loan to new customers at 8.5%.

 

[panu24]

It is reduced from 9.3 to 9.05
But currently, SBI is offering home loan to new customers at 8.5%.

Probably then you can think what they are asking but check with them first that what cibil range will make how much % of reduction for your current 9.05% rate. Ask them this and then decide if its worth to pay the charges. if your cibil range is not as per their criteria to have reduced rate then no use to pay that fee.

 

[Teesa]

Yes. As I mentioned already, they reduced interest rate from 9.2 to 8.4 after checking with my cibil last March. After recent reduction in repo rate. It further reduced to 8.15. But that 5900 added to my loan amount. I didn't pay in cash.

 

[JigmeKhesar]

But on increase will these rate increase too?
What is better CIBIL check to reduce rate by 1% or shifting to MCLR rate from repo rate?

The rates are floating and will increase if the benchmark rates go up.

The other user has shared how they got their rates reduced basis their credit worthiness and by paying a fee.

Talk to the bank staff.