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Q.

I have taken home loan of Rs. 10,31,000 from ING Bank for 7 years. At present they are charging Interest rate 11%. If I want to repay the whole amount of loan and take fresh loan at the present rate 9.5% as is declared now. Is it advisable to repay the existing loan and take fresh. or tell me if I will be the looser or not. I have taken Life Insurance with it of Rs. 35,000. Will I loose this Rs. 35,000. Pushpa Dewan

Asked by pushpa dewan, 18 Dec '08 01:12 pm
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Answers (5)

1.

1. If you are closing the loan fully, then you will be charged pre closure charges.
2. If you are going for a fresh loan, then also you will be charged with some percentage as procesing fee.
3. As for as I know, you may loose the insurance also.
if you have more doubts, the mail me to shiva_mathi@rediffmail.com
Answered by sivakumar subramanium, 18 Dec '08 02:09 pm

 
  
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2.

Plesae dont do these (closing existing and apply fresh) couse the govmt declear these but bank's want accept application for and pass a long time to clear your file and disburse it thes scheme is under technical alteratin, if you calculate the diffrnce bitween these to rat's you r looser , coz prepayment chargese minimum 2 to 8 %, prossecing charges wich you paid, and for new, leagal&valuetion charges, your time , you have to pay doble time , and lastly there is no guerenty of new loan , cose bank can refuse your application without reason or say like these after the end of prossess " you r not eligible for old flat" couse scheme is for new constucted flat (fresh) and my dear friend these scheme for only 5 year period after 5the year thay will ask for any thing . so please dont do these, by the way normaly bank charge 12.5 to 13.5 % intrest + addinal prossess charges
Answered by HITENDRA PATEL, 18 Dec '08 01:47 pm

 
  
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3.

This is not applicable for switching loans. Only fresh purchase will be applicable for 9.25%. this is just to boost real estate sector.
Answered by mukesh srivastava, 18 Dec '08 01:28 pm

 
  
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4.

1)u can switch to the recent rates. switching between rates is applicable in many banks, find it out from ur bank.
2)And if they dont provide such facility then u can go to other banks(may be SBI) that provides u lower rates and u can repay ur loan from ING.
for both plans u have to pay some charges but still u'll be in profit. first one will be more profittable
Answered by neelam devraj, 18 Dec '08 01:25 pm

 
  
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5.

Im not aware of the scheme of ING bank - you need to speak to them directly for clarfications. But generally speaking the new special housing loan at attractive rates are only for new borrowers - so existing borrowers like you wont benefit. However if there is another bank that provides loan at 9.5% make sure that the cost of transfering the loan is able to be covered by the savings on EMI. There may be foreclosure charges, processing fee for new loan, etc.
Another thing is that you may lose your life insurance though it is not a significant amount.
If you have surplus funds I would suggest you to make part prepayment and continue with the same bank as you will still enjoy tax breaks on the EMI and reduce the EMI as well. Later when interest rates drop your EMIS will drop further.
If you get a good deal from loan transfer to another bank as I told you above you can take that options provided you benefit after paying those costs.
Answered by NASAman, 18 Dec '08 01:18 pm

 
  
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