Category Archives: Loan

Home Loan

How to Reduce Existing Home Loan Interest Rates

Banks and housing finance companies reduced interest rates on home loans. Banks charge a conversion fee of around 0.5% on your outstanding loan amount, plus taxes. For instance, if your home loan outstanding is Rs 10 lakh, the conversion fee would be around Rs 5,000, plus taxes. 1. Banks follows MCLR (Marginal Cost of fund-based Lending Rate) model The MCLR is the benchmark rate below which a bank cannot lend and is calculated based on a prescribed formula based of four variables (1) marginal cost of funds (2) operating cost (3) tenure premium and (4) negative CRR-carry cost. MCLR replaced Continue Reading »