Why HDFC is not floating down home loan interest rates?


I have a very bad experience with HDFC, my HomeLoan is Variable Rate, but interest is not floated down automatically, And most important thing is, HDFC didn’t even informed me about lower interest rates available. When I got to know from my friend, about conversion fees business of these HDFC LTD. buggers, i was shocked.

I don’t understand one thing which is if In case Interest rates would have gone up, they would have automatically increased my EMI, but they don’t even notify their customers regarding new lower interest rates, and when we get to know about it, they charge some conversion fees. this is TOTAL RIP-OFF of customers HDFC.

Should I go for Loan transfer to some other Bank Or all of them are like this?


Hi Yogi,

We can understand your frustration and empathise with you. It is true that lending firms do not decrease rates automatically for existing borrowers when they start offering lower interest rates for new borrowers. It is also true that they charge a conversion fee for granting lower interest rates. This is irrespective of whether it is a bank or Non-Banking Finance Company (NBFC). While some say that their conversion fee is a one-time charge, there are others who charge every time you want interest rates lowered. They do increase interest rates automatically when interest rates rise. If you are not happy with your Home Lona provider, you can consider a balance transfer. But do check the terms regarding the processing fee, conversion fee, and other charges before you do.

BB Expert