regarding repayment of home loans

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Rishabh Mishra (Querist)
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04 January 2009 hi can anyone help me to tell the procedure to be followed in repayment of a home loan which is taken from ICICI and want to transfer to the nationalised bank in the middle of the repayment period....what are the considerations which must be seen while effecting such a transfer...and whether it is recommendable or profitable or not....please reply me at rishabh_mishra35@yahoo.com

K V Subba Rao

K V Subba Rao (Expert)
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04 January 2009 You have to spend about Rs 50000 plus towards Pre-payment charges to Banks which act very fast when it comes to raising and act very slow when it comes to lowering home loan rates of interest and about Rs 12000 towards Processing Charges to nationalised bank.

It is definitely worth spending the amount especially if the balance tenure of the existing loan is long, say, 12 to 15 years or more.

Obviuosly one has to make calculations for both alternatives - do pre-pay and do not pre-pay with one's own figures and decide

Generally it is beneficial to shift