Usually, after an interest rate revision, term changes, not EMI

Usually, after an interest rate revision, term changes, not EMI
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First Published: Mon, Feb 18 2008. 12 18 AM IST
Updated: Mon, Feb 18 2008. 12 18 AM IST
To help readers keep pace with what’s happening in the real estate sector, Mint’s Q&A will appear every other Monday.
I took a home loan of Rs16 lakh for 20 years from the Housing Development Finance Corp. (HDFC) in December 2007 at the floating rate of 10.25%. I would like to know the following points relating to the rate cut by HDFC: From which date will the revised rates be applicable to my loan? What will the revised floating rate be for me? Will it change or reduce my equated monthly instalment (EMI) or loan period?
Since you have not shared your loan account details, we can only share the following with you. Assuming that your loan was disbursed on 1 December, then the new rate will be applicable to you from 1 March. In case it was any time later in December, the new rate will be applicable from 1 April. This is because the interest rate gets reset every quarter based on the date of your disbursement.
Your revised rate would be 10%, since we have announced a 25 basis points cut in our RPLR or retail prime lending rates, against which HDFC benchmarks its interest rates (one basis point is one-hundredth of a percentage point).
Usually, when there is a revision of interest rate, the term is altered, while keeping the EMI constant. However, if you want to know the revised term, please contact your nearest HDFC branch or write to us with your loan account number.
My brother wants to transfer a residential flat to my name; the flat in question is located in the Mumbai suburb of Kandivali (West). Kindly advise us on the procedure and other paperwork, such as the payment of stamp duty and other charges. Also, please let us know whether payment of transfer fees to the society is applicable in this instance.
You have not mentioned in your mail whether the transfer is with or without a monetary consideration. In case your brother is selling the property to you, then he would need to execute a transfer deed in your favour. This document will have to be adequately stamped and registered. A copy of the registered transfer deed along with your brother’s application will need to be submitted to the society for necessary transfer in their records. Transfer fee as stipulated in the bye-laws of the society will be applicable.
However, if there is no monetary transaction involved, you can consider doing the transfer through a gift deed. But in this case as well, the document needs to be stamped and registered.
Renu Sud Karnad is joint managing director, HDFC. Readers may write in with their queries and comments to askmint@livemint.com.
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First Published: Mon, Feb 18 2008. 12 18 AM IST