Apply Now
news

Interest Rate Switch/Conversion

Switching of Rate of Interest

Any customer may apply for switch over from a higher interest loan to a lower interest loan based on his improved credit profile. The Company may consider the application for approval based on review of the case as per its policy subject to payment of a Switch Fee/ Charge up to 4% (including GST) of outstanding loan amount by the Customer.

While approving such an offer, the Company may provide the following options to the borrower:

(a) The borrower may reduce EMI amount of loan keeping residual tenor of the loan unchanged; or

(b) The borrower may keep EMI amount unchanged thereby reducing residual tenor.

(c) Mix of both options available at (a) and (b).

The reset of spread will be effective from the next EMI cycle date of the following month from the date of switch.

The facility is available only to fully disbursed loan wherein the customer is regular in paying the EMI and have no overdue in the Loan Account.


Conversion of Type of Rate of Interest

A borrower may request for conversion of loan from floating rate to fixed rate and vice-versa. The Company shall consider such request upon receipt of a request and Conversion Fee/ Charge of Rs. 5,000/- or 0.5% of loan outstanding; whichever is higher. The decision to allow the conversion shall be at the discretion of the Company based on review of the account. Upon conversion, the customer shall be treated as fixed rate or floating rate customer, as the case may, from next EMI date or any other date mutually agreed.

The facility is available only to fully disbursed loan wherein the customer is regular in paying the EMI and have no overdue in the Loan Account.