HDFC Home Loan customers..need advice on conversion fees

[webmaster]

My current home loan is from HDFC Ltd. and the ROI has increased to 11.25% from 1st Jan 2011.

I spoke with the HDFC official from the Faridabad branch about the ROI and he informed me that my spread is 3.75% and the current Retail Prime Lending Rate (RPLR) is 15% for HDFC…so effectively my ROI is 11.25% (RPLR 15% - Spread 3.75% = 11.25%)

Now he advised me that I can increase my spread (discount) to about 5% (max) which will bring down my ROI to about 10%, however there is a ‘conversion fee’ of about Rs.19500 which is a one time payment and my discount will remain constant for the entire loan tenure.

At first, these terms sounded very technical and I was not able to completely understand the mumbo jumbo, however after reading up on the internet it clarified a lot of things.

Now even though this proposition sounds like a win-win situation for me as I will save interest, wanted to know from other members if they have any experience on this issue and can throw some more light.

[ankuragarwal1982]

Yes, I got it done 6 months back by paying 0.5% of the disbursed loan. It brought down my rate by 1%.

[ddamitav]

even i paid 0.75% as conversion fee for reducing the interest rate from 11% ti 9% and again they increased it to 10.5% after 2 months, so at the end I have been cheated by the bank.

[ankuragarwal1982]

yes, it has increased again but as the bank said...the extended spread has been maintained.

[webmaster]

Just to update everyone, I had to pay a conversion fees of Rs.22000 to increase my spread (discount) to 5%

[hellong]

Hi Jayanta,

I also paid 40000 rs to increase my discount 4-5 months back. It is really siad to arrange that sum of money without aving anything in our hand. What is your current Rate of interest ?

[webmaster]

The current ROI is 10.75%

You can check the trend here..

banks-increase-home-loan-rates-again-t766.html