Should I think of shifting my home loan?
Yes, this should be an ongoing exercise. Every year or so, you should evaluate whether the interest rate you are paying on your home loan is much higher than the best rate available in the market. If the difference is 50 basis points or more, thinking of shifting, especially if you are early in your loan tenure. With public sector banks like SBI and Bank of Baroda
announcing reduction in loan rates, this is a good time to check where you stand.
How should I go about this?
First, check with the new bank whether it is willing to lend to you. This may take a few days as it will check your credit score to see if your past behaviour as a borrower has been sound. Once the new bank agrees in-principle, get a no-objection certificate and a
document stating how much of your loan remains to be paid from your existing lender and apply. The new lender will then run the same checks it does on a new customer before approving your loan.