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?
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.