Bangalore: It has been a cheerful time for most SBI account holders when SBI announced lower home loan interest rates, with a conversion fee of 1 percent. Preeti Kulkarni, of the ET Bureau, gives a comprehensive look at which is the better option for customers – going for lower interest rates or switching banks.

Going for lower interest rates equates to lower EMIs (Equated Monthly Installments). Though this scheme is mostly applicable to new account holders, existing account holders too can benefit from it. Existing account holders can get lower home loan interest rates by applying for a conversion fee of 1 percent. Currently, SBI is giving home loans at an interest of – 10.75 percent.

Other banks too are not far behind in the lowering of home loan interest rates – ICICI Bank – present rate of interest – 11.00 percent, with a conversion rate of 1.75 percent. HDFC Bank - present rate of interest – 11.00 percent, with a conversion rate of 0.5 – 1.75 percent. Axis Bank - present rate of interest – 11.00 percent, with a conversion rate of more than 1percent or 5,000. Standard Chartered - present rate of interest – 10.75 percent, with a conversion rate of 1.50 percent.