FACILITY OF REPRICING OF EXISTING HOUSING LOANS:
Existing Floating Rate Housing Loan borrowers, in case their loan account is having interest rate higher than present card rate, have an option to switch over from higher rate of interest to reduced card rate prevailing at present by paying a service fee of 1% of outstanding liability plus applicable service tax.
Eligibility conditions for this facility are as follows:
  • Loan account should be having floating rate of interest.
  • Account is regular in repayment.
  • Borrower should have complied with all terms and conditions stipulated in the sanction without any outstanding inspection query in the account.
In case the loan is in joint name or it has guarantee of third party, then all the joint borrowers/guarantors are required to give the option letter of Repricing the loan to their Branch/Office in the format given below.
SPECIMEN OF OPTION LETTER TO BE SUBMITTED BY ELIGIBLE EXISTING
HOUSINGLOAN BORROWERS TO SWITCH OVER TO CURRENT REDUCED
CARD RATES
CANARA BANK
(NAME AND ADDRESS OF THE BRANCH)
OPTION LETTER
To
The Branch-in-Charge Place:-
Canara Bank Date:-
…………….…….. Branch
Dear Sir,
Sub: MY / OUR HOUSING LOAN ACCOUNT / HOME IMPROVEMENT LOANACCOUNT WITH YOU- OPTION FOR REPRICING TO REDUCED RATES OF INTEREST ON PAYMENT OF REPRICING FEE
I / We, the undersigned, furnish here below details of the housing loan availed by
me /us:
Name of the Borrower
Loan account No.
Date of loan
Loan amount
I / We are informed that the Bank is offering option for repricing of Housing loans for borrowers whose loan accounts are regular, and whose interest rates charged at present are higher than the new rates introduced. We are aware that this is purely a gesture of goodwill from the Bank and the offer is being made even when there is no reduction in Base Rate. The Repricing option if required is to be made in writing by existing housing loan borrowers like me / us to exercise the option for availing the benefit of reduced rates of interest (floating) by making one-time payment of a nominal fee equivalent to 1% of the outstanding liability, as repricing fee.
In accordance with terms of the above offer, I / we hereby exercise our option
for the reduced rate of interest as below:
Present rate of interest
on the above loan / Effective rate of interest
after repricing / Amount of repricing fee
payable
I / We, the undersigned request and authorize you to recover the above stated one-time repricing fee by debiting my / our account No.______and arrange for reducing the rate of interest on the above housing loan.
*I / We further state that I/we have availed Home Improvement Loan also for which the above stated property is given as continuing collateral security which is carrying higher rate of interest at present. I / we request and authorize you to debit an amount of Rs………………….. (Being 1% of repricing fees under HIL account) to my / our account No…………………………………. and reprice the rate of interest on the H I L also so that the same is on par with the interest on housing loan.
* Strike out, if not applicable.
Further, on account of reducing the rate of interest as requested above, I / werequest you to:
a) Decrease the EMI and retain the existing repayment tenor; OR
b) Retain the existing EMI and reduce / truncate the repayment tenure
In this connection, I / we hereby specifically declare as under:
  1. I / We have fully understood the details of offer made by the Bank and the Bank is having the sole discretion to withdraw/negate the offer at any time without assigning any reason.
  2. I / We acknowledge and admit that the reduced rate of interest is linked to Base Rate and the same is floating.
  3. I / We agree to bind myself / ourselves to pay interest/EMI as may be changed by the Bank from time to time on account of changes in interest rates. I / We also waive service of notice relating to periodical changes in interest rates.
  4. I / We are aware that the offer is strictly subject to there being no overdues in any of my / our loan accounts with the Bank.
  5. This letter is to be treated as part and parcel of the loan documents executed by me / us in respect of the above mentioned loan.
Yours faithfully,
1. Borrower/s :
2. Co-borrower/s / Joint Borrower/s:
3. Co-obligant/s / Guarantor :
For Office Use
Housing Loan A/c No. / Repricing Fees / Rs.
Date of Sanction / Service Tax / Rs.
Original Limit / Rs. / Balance Loan Tenure / months
Original Tenure of the loan / Applicable Rate of Interest / %
Present Rate of Interest / % / EMI (After Repricing) / Rs.
Present EMI / Rs. / Tenure - After Repricing (Should
not exceed present left over tenure) / months
Liability as on date / Rs.
Overdues (if any) / Rs. / Date of payment / credit of
repricing fees
Prepared by Checked by Manager / Senior Manager
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