Advantage for SBI Customers?

Kapil Narang, COO of Ameriprise India, a financial planning institute, says, "Overall it's a good move by SBI as this would allow many customers to reduce the interest liability of their loans. We believe this would be more beneficial for customers with larger loan outstanding or a longer tenure."

V.N. Kulkarni, Chief Counsellor with the Bank of India-backed, Abhay Credit Counseling Centre, says, "Now, say such borrowers wish to switch to another lender to avail of the lower rate of interest, and their existing lender has waived off the pre-payment penalty. But, they may still have to incur other expenses like processing fee, pre-sanction fee, advocates' fee for title investigation, valuers' fees for valuation report, stamp duty for loan agreement and mortgage etc. Instead, if they opt for conversion, such charges will not come into the picture."