ROI Switch Policy

ROI SWITCH POLICY

Home Loans :

Existing customers have an option to reduce the applicable rate of interest on their loan by changing the spread or by switching between the schemes i.e. applicable benchmark rates through our ROI Switch Policy.

This option to switch is available to the borrowers who intend to continue their loans are under Floating Rate of Interest or switch from floating rate to the Fixed rate of Interest or vice versa. This switch option is available to Salaried, Self-Employed Professionals and Self-Employed Non-Professionals, who have availed below loans
⚈ Home Loans
⚈ Home Improvement Loan
⚈ Home Construction Loan
⚈ Plot Loan
⚈ Plot + Construction Loan

Any change in the Interest Rate(s) (pursuant to the switch facility opted by the borrower/s) will subsequently have an effect on the Tenure of the Loan and amount of equated monthly instalment(s) ("EMI") will remain unchanged, unless specifically requested by the borrower/s (to give effect on EMI amount) and is subject to condition that it meets other norms and policy parameters of the Lender.

Conversion/Switch Fee is payable on the principal outstanding at the time of switch and will be charged at the discretion of the lender. For the revision of interest rate within Floating Rate option (i.e. floating to floating rate), the fees payable shall be 25% or onwards of the difference of the two coupon rates i.e. between the existing and proposed revised rate, whereas in case of switch from Floating rate to Fixed Rate or vice versa, the fee payable shall be 50% or onwards of the difference of the two rates i.e. between the existing and proposed rate.

The offered rate for switch will depend upon factors like profile, loan amount, property type and other risk parameters. In case of a partly disbursed loan, the switch fee is payable on the principal outstanding (POS) only. There will be no switch fee payable on the undisbursed loan amount out of the total contracted loan. Rate switch and reduction will be at the discretion of lender and will depend upon various factors like -\

⚈ Account to be regular
⚈ There should be no document pending submission by borrowers
⚈ There should be no material impairment in the value of the underlying collateral
⚈ There should not be any breach in terms of loan agreement , which is not acceptable to the lender
⚈ Any other condition as imposed by the lender
⚈ Execution of switch documents as per norms

The same shall be communicated to the borrower in an appropriate manner.

The reset of the spread/rate of interest shall be effective from the billing cycle, following the month in which all necessary switch formalities and documentation are completed by the borrower/s.

The Rate switch offer shall be valid subject to the fulfilment of conditions/ additional terms as imposed by the lender.

The customers will be entitled to avail switch option in their loan account only once in a particular calendar year (i.e. January to December).

The Lender reserves the right to accept or decline the borrowers request for switch based on its assessment of the proposal and other factors affecting the lending business. The decision of the Lender shall be final, conclusive and binding to the borrowers.

Non Home Loans

Existing customers have an option to reduce the applicable rate of interest on their loan by changing the spread or by switching between the schemes i.e. applicable benchmark rates through our ROI Switch Policy.

This option to switch is available to the borrowers who intend to continue their loans under Floating Rate of Interest or switch from the floating rate to Fixed rate of Interest or vice versa.

This switch option is available to Salaried, Self-Employed Professionals and Self-Employed Non-Professionals, who have availed below loans -

⚈ Loan Against Property
⚈ Top-up Loan
⚈ Construction Finance Loan
⚈ Lease Rental Discounting
⚈ Non Residential Property Loan

Any change in the Interest Rate(s) (pursuant to the switch facility opted by the borrower/s) will subsequently have an effect on the Tenure of the Loan and amount of equated monthly instalment(s) ("EMI") will remain unchanged unless specifically requested by the borrower/s (to give effect on EMI amount) and is subject to condition that it meets other norms and policy parameters of the Lender.

Conversion/ Switch Fee is payable on the principal outstanding at the time of switch and will be charged at the discretion of the lender.

For the revision of interest rate within Floating Rate option (i.e. floating to floating rate), the fees payable shall be 50% or onwards of the difference of the two coupon rates i.e. between the existing and proposed revised rate, whereas in case of switch from Floating rate to Fixed Rate or vice versa, the fee payable shall be 100% or onwards of the difference of the two rates i.e. between the existing and proposed rate

The offered rate for switch will depend upon factors like profile, loan amount, property type and other risk parameters. In case of a partly disbursed loan, the switch fee is payable on the principal outstanding (POS) only. There will be no switch fee payable on the undisbursed loan amount out of the total contracted loan.

Rate reduction through spread change will be at the discretion of lender and will depend upon various factors like -

⚈ Account to be regular
⚈ There should be no document pending submission by borrowers.
⚈ There should be no material impairment in the value of the underlying collateral
⚈ There should not be any breach in terms of loan agreement , which is not acceptable to the lender
⚈ Any other condition as imposed by the lender

The same shall be communicated to the borrower in an appropriate manner.

The reset of the spread/rate of interest shall be effective from the billing cycle, following the month in which all necessary switch formalities and documentation are completed by the borrower/s.

The Rate switch offer shall be valid subject to the fulfilment of conditions/ additional terms as imposed by the lender.

The customers will be entitled to avail switch option in their loan account only once in a particular calendar year (i.e. January to December).

The Lender reserves the right to accept or decline the borrowers request for switch based on its assessment of the proposal and other factors affecting the lending business. The decision of the Lender shall be final, conclusive and binding to the borrowers.