Housing Loan Rates Got Me Thinking 🤔

It's with Karnataka Bank. How can I get it reduced to 8.5%? Any specific steps or tips you could share would be super helpful

Yeah, even with average credit score he can get it to under 9. @steppenwolf what's your credit score, did you have any bad loan history before

@MustyBrown Never heard of them before. What were your previous and current interest rates after transferring your loan through them? Also, curious about any additional benefits you got by going through CreditDharma instead of directly dealing with the bank for the transfer.

10.1 to 8.6.. also got extra discount on processing fees. i love it. So they advised me on balance transfer and arranged a bank who gave 8.6 for my profile. on an avg i said almost 8 lac rs due to credit dharma 💯

I actually asked about switching to a fixed interest rate option to avoid these fluctuations, but the manager told me that option isn't available right now.

Floating rates are not bad, you just need to understand how it works. To simplify floating rate depends on rbi repo rate (direct corelation)

Was it always around that figure, or did you see any changes along the way?

It was lower definitely 8.8 something

@DisruptThis thanks for the suggestion, have already pinged them 🙏

@BoredCorporateSlave From my experience, the first time I approached the bank about the high interest rate, the manager advised me to send an email to the branch formally requesting a rate reduction. Surprisingly, that worked, and I managed to get a 1-1.5% reduction. But now, my rate has crept back up to its previous high, and frankly, I'm not holding out much hope for another decrease. My advice? Definitely try asking them to lower it, but if they're not willing to budge, make it clear you're considering porting your loan to another bank. Sometimes, just the possibility of losing a customer can prompt them into action like @steppenwolf mentioned. Good luck with your visit!

Got it, thanks. In my case, I have already mailed them once, but it's SBI, so they don't even bother to check and respond to mails, unless you call them and tell them you sent a mail. As someone mentioned, SBI probably won't budge, so I'll probably have to switch to another one.

Thanks for the push! I've decided to look for a better rate and consider transferring my loan. Appreciate your advice 🙏

Thanks for the valuable insights!

that's great 👍

Thanks for sharing that! I'm seriously considering doing the same since the one-time cost of shifting seems way less compared to the potential savings on interest in the long run. The numbers definitely make a strong case for moving to another bank with a lower rate.