The base rate is the minimum interest rate of a bank below which it cannot lend, except for cases allowed by RBI.

Repo (Repurchase) rate is the rate at which Reserve Bank of India lends shot-term money to banks against securities.
Reverse Repo rate is the rate at which banks park their short-term excess liquidity with Reserve Bank of India.

Floating rates are fluctuating in nature depends on the movement of base rate / RPLR rate, which inturn depends on repo rate / reverse repo Rate / CRR.
Floating Rates are linked to base rate / RPLR rate and the margin or discount will be constant throughout the tenure of loan.
Fixed Rate are supposed to be fixed throughout the tenure, however now only semi fixed products are available wherein rate of interest will be fixed for a certain period of time and thereafter floating.
** Foreclosure fees are charged by banks for the tenure when it is fixed.

Maximum tenure of loan depends on Type of Property and age of the applicant,

• Maximum tenure for home loan (Resident Indians) – 20 yrs
• Maximum tenure for home loan (Non Resident Indians) – 15 yrs
• Maximum Tenure as per age (Salaried) – 58 yrs or Retirement whichever is earlier.
• Maximum Tenure as per age (Self Employed) – 65 yrs.
• Maximum Age of Property owner wherein income is not considered – 80 yrs

** Age mentioned is as on loan maturity.

Co-applicant are the second applicant for the loan who become co-applicant for two reasons,

1. They are owners of property.
2. Their income is considered to arrive at loan eligibility.

** ALL co-owners have to be co-applicants for loan
** All co-applicants need not be co-owners.
Generally the below matrix is considered for applicant and co-applicant.

1. Husband + Wife
2. Father + Son
3. Mother + Son
4. Brother + Brother

** There can be more than one co-applicant in the loan.

Most banks/HFC’s have waived foreclosure charges to close home loans currently in variable / floating rate, however fixed rate home loans and loan against property loans have foreclosure fees mostly 2% of the outstanding principal for home loans and between 2% – 5% for loan against property loans.
Loan processing fees needs to be paid to the new bank who are intending to take over the loan , have check on periodic offers from banks waiving processing charges for balance transfer loans

There are many factors that can influence the outcome of your refinanced loan. Interest rate is an obvious factor, but the costs to refinance (e.g. foreclosure charges, processing charges ) may outweigh the savings achieved by a nominally lower rate. On the other hand, additional features such as top-up loan, extended tenure may help give you extra savings making balance transfer a prudent choice. The key is to crunch the numbers, but it’s best to consult our home loan officer to help with your calculation.

Consolidating your debt can be a good strategy to keep your finances in order, but can turn out to be costly if not managed with care. Rolling short-term debts (such as your credit card or personal loan) into your mortgage may ease the immediate repayment pressure, but bear in mind you’re actually turning them into a long-term debt which means you’ll likely end up paying more in overall interest. You’ll be better placed to reap the full benefits of debt-consolidation when it’s combined with a commitment to reduce your spending or make extra repayments.