I just came to know that HDFC has increase the spread to 4.25% from what it was around 3% around 3-4 years back.

What is Spread? - It is the diffrence between current RPLR and your home loan rate of interest.

For example, if current RPLR is 14.5% and your Spread is 3% - Rate of interest will be 11.5% for your loan.

But you can increase the Spread to 4.25% (maximum limit as set by HDFC) by paying a conversion fees (0.5% of the outstanding principal amount) which will reduce your interest from 11.5% to 10.25%.

I was able to reduce my EMI by 14 installments which is saving of around 2Lacs.


Please check the spread in your loan agreement or call HDFC.

Note: I think it is applicable for other bank's customers also. Please check with your banks.

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