Need A Financial Product › Forums › Loans › Can IDBI demand conversion charges on my home loan

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  • August 25, 2014 at 1:48 am #47031
    Sameer Kapoor
    Participant

    Two and a half years back, I borrowed home loan from IDBI for 15 years. Now, I want to convert it from BPLR to base rate but the bank is demanding 0.5% of the outstanding amount. Is the bank authorized by RBI to demand conversion charges?

    August 26, 2014 at 9:14 pm #47032
    samkapoor77
    Keymaster

    Usually banks charges while reducing spread that has an impact on interest rate. Reconfirm from IDBI whether they are charging 0.5% on converting it from BPLR to base rate or for reducing the spread. As a matter of fact, conversion from BPLR to base rate is free of cost.

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