Can an interest rate slab be reviewed?

You cannot get a lower slab now from the same bank. Your best bet is to shift the loan to another bank (interest rate will be around 10.50% p.,a.) with a shorter tenure. Most PSU banks dont charge any pre-payment charges on floating and the new lender is likely to waive the processing fee making the transfer costless. You can apply for a home loan transfer by using this link . http://www.apnapaisa.com/loan/home-loan-india/compare.html

Thank you Mr. Roongta.

I did get in touch with the branch manager of my existing bank, and he has agreed to consider and send the request higher up, if I submit my IT Return, Payslip etc to satisfy them of my eligibility to pay the higher EMI.

Let's see!

Great for you Vikram. Just make sure you do not pay more than 10.50% p.a.

Well, my lending bank is BOI and their Base Rate is 10.75% currently. The interest rate offered at lower slab is at Base Rate. So that's the best I can get at the moment.

Hopefully there is a reduction in base rate expected in near future!

If Base rate drops for your current bank it is also likely to drop for other banks as well and the differential between the rates available in the market and your banks rate will continue to remain.  So unless you have a special reason for sticking to your existing bank there is nothing that you gain by paying 0.25% p.a. extra on the loan year after year.