Home loan borrowers are increasingly changing the mortgage loans from private lenders to the public sector banks (PSB) to use, said the huge gap between the interest rates for borrowers from private lenders to make new and existing borrowers in the PSB, that the executives the two public banks.

Take the case of Santiago Rajat (name changed), a customer of a private bank. He took the RS 35 lakh loan two years ago and now the principal amount of Rs 30 lakh is due, after payment of EMIS and turn off the payments. Mr. Sharma is now changing, its loan to the State Bank of India (SBI), the largest bank in the country.

At the current level of 12.75% to pay an EMI of Rs 36,049 on the private banks, but SBI is only Rs 26,948 as EMI, with a rate requirement of 8%.

Under the assumption that the prices offered by the two banks did not change from year to year, the customer pays Rs 1.09 lakh as EMIS least a year. After allowing for the transfer costs and handling fee, which is around 75,000 rupees, the customer has saved Rs 34,000 in a year.

A customer usually pay 2% of the outstanding advance the costs on to other lenders and about 0.5% as a handling fee for the new lender.

"Low interest rates in the public sector banks are boosting demand and new and existing customers. We have an increasing number of requests from existing clients of private banks to modify their loan portfolios to see us," said ECB president Corporation JM Garg by The trend has emerged in recent months. Corporation Bank offers housing loans to 8.5-10.5%.

HDFC, the largest mortgage bank in the country, was denied a substantial increase in applications for the transfer of the loan.

've Seen "At the moment, any increase in requests for transfers of loans from our existing customers," said a spokesperson said, HDFC. ICICI Bank, the second largest mortgage lender, declined comment.

Private banks have been reluctant to lower their mortgage rates, despite a series of cuts in interest rates by the Reserve Bank of India. State-owned banks like SBI and Punjab National Bank (PNB), have greatly reduced rates, reducing borrowing costs at home.
Home Insurance |