Bangalore: Home loan borrowers now have the opportunity to switch to the low interest plans either by converting or change of the existing loan. It all depends on the borrower whether he wants to opt for increasing the EMI or the loan tenure, reports Economic Times.

1. Request letter

Once you decided to take up the conversion of your existing loan plan, you must submit a request letter to the nearest branch office. The bank might ask you for a promissory note in favour of your payment of the balance at the new interest rate.

2. Conversion fee

The bank will levy certain percentage as conversion fees which will be in the range of 0.25-1 percent of the total bank loan. This should be paid in the form of cheque when you submit the documents for the first time.

3. Bank scrutiny

Once all the documents were submitted, the bank starts with the valid check. After checking all the given details, if the bank considers the person genuine and the documents provided are authentic, the borrower will receive a confirmation letter. Along with the letter, the revised terms and conditions from the bank will also be attached.

4. Fresh cheque

Fresh EMIs will have to be submitted if the borrower chooses to increase the monthly installments in case if the mode of payment is through post-dated cheques.

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