💡 Loyalty vs Logic: When Your Housing Loan Company Stops Being fair to you.

 


A friend called me last week — perplexed, almost guilty.
He asked, “Should I shift my home loan to another NBFC offering a lower rate of interest?”

He wasn’t just asking about money.
He was asking about loyalty.

This was the same housing finance company that had stood by him for years — funding every property he had ever bought. A relationship built over time, trust, and milestones.

But numbers don’t always respect emotions.

The Situation 🔍

  • Loan Outstanding: ₹1 crore
  • Remaining Tenure: 15 years
  • Current ROI: 8.35% p.a. (floating)
  • Offered ROI by New NBFC: 7.75% p.a. (floating)

His existing HFC refused to reduce the rate — even though new customers with similar CIBIL scores were being offered 7.55%!
It wasn’t about affordability. It was about fairness.

The Back-of-Envelope Math 📊

·       At 8.35%, his total interest outgo over 15 years = ₹75.67 lakh.
At 7.75%, for roughly the same EMI (~₹97,700), the loan would finish in ~14 years, and the total interest outgo would drop to ₹69.43 lakh.

·       That’s a saving of over ₹6.2 lakh — just by switching.

·       Processing fees and admin hassle? Minimal, compared to what he’d save.
RBI guidelines ensure no prepayment penalty on floating-rate loans, and inter-institutional transfer is now a smooth process.

The Dilemma ❤️ vs 💰

·       He hesitated — not because of the math, but because of memory.

·       His HFC had once believed in him when few others did.

·       But the truth is — loyalty in finance must be two-sided.

If your lender isn’t rewarding your consistency or creditworthiness, it’s time to reward yourself — by being financially smart.

The Takeaway 💬

In personal finance, emotions are real.
But logic compounds, while loyalty costs.

So, if you’re holding on to an expensive home loan out of sentiment — run your numbers once.
Your next smart move might just save you a few lakhs and a few years of repayment.

#PersonalFinance #HomeLoan #FinancialPlanning #AshwaniNexus #AshwaniThink

 

Comments

  1. A J13 October 2025 at 16:13

    A situation which is being in every individual's mind who has taken housing loan. Smart calculation mixed with human phycology , really a twist.

    ReplyDelete
  2. Vikas Awasthi13 October 2025 at 23:07

    An eye opner and shattering the curtain of laziness or emotion article.👍

    ReplyDelete
  3. Ashwani Nexus31 October 2025 at 12:52

    Yes, Need to be more proactive than before.

    ReplyDelete

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