Step 1: Negotiate with your bank

Before taking business to another bank, negotiate for a lower rate with your current vendor. They mya have a better plan.

Clayton Scott, the Director of Ecompare.co.in, a financial products comparison web site suggests, "There are banks that allow switching at the time of annual review of accounts, at no extra cost. There are others that allow such switches but at a cost of around 1.5% of the outstanding loan amount."

This is a good option for Jaidev, as it's quick and involves fewer formalities.

Photograph is for representational purposes only.

Photograph: StockXchnge