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Old 4th May 2012, 15:43   #256
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Default re: Help with a home loan!

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Originally Posted by ghodlur View Post
. Except SBI all others are quoting 10.5% floating and around 10K+ for processing charges, SBI quotes 10.75%.

All other banks have a normal home loan account whereas SBI has the OD account where the surplus money can be parked/withdrawn.
Even though the intrest rates for all banks apart from SBI are same do get an EMI quote also. I have heard that for same amount though they claim certain intrest rates their EMI's may differ based on the calculation they follow.
This was not known to me till I checked while thinking of finalizing a home loan for myself and some forum members asked me to check the same.

Also SBI as far as I know has intrest on daily depreciation basis I guess, not sure of others.
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Old 4th May 2012, 15:52   #257
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Default re: Help with a home loan!

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Where would I get the history of Interest rates for banks? Although I was averse to ICICI but I have heard some good things about them recently (Colleagues' experience)
This should be available on one of the comparo websites. I dont remember the link, but is it apnaloan?
One of my school buddies is an ICICI employee and he told me not to even consider it. I have a loan with HDFC, and not with SBI purely because I wasnt here while the loan processing was being done. And I could not afford to have any lapses there as I didnt have anyone to do the running around.
If it is possible for you to chase SBI or undergo the extra time in processing, its a more recommended option. Especially now that mpksuhas mentions daily reducing rate. Also with OD it becomes easier to prepay and take more principal. In case you ever need some money for say, home improvements. Though I am not sure how that works.

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Originally Posted by mpksuhas View Post
Even though the intrest rates for all banks apart from SBI are same do get an EMI quote also. I have heard that for same amount though they claim certain intrest rates their EMI's may differ based on the calculation they follow.
+1, great idea. This will give you an estimate of how much you can afford and also if you can shorten the tenure.
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Old 4th May 2012, 19:37   #258
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Default re: Help with a home loan!

Hi,

I too am looking for a home loan for a resale flat. Have contacted all major banks and the ROI is the same 10.75 p.a. The amount reqd is a bit higher and after speaking to all those bank guys, i am tilting towards HDFC. Also since i booked my loan from loanbazzar.com i am eligible for a 5K off processing fees which usually is approx 10K + service tax. Catch here is, you will get the cheque of 5K after the loan has been disbursed.

I would have opted for SBI but i really dont have the patience to run around pleading to get it approved and disbursed. Moreover they are offering the same ROI as HDFC and with same terms and conditions and the SBI homeloan is now centralized from their Bandra office and branches no more assist us once the forms are filled up and sent to bandra office !

Anything i should look out (hidden T&C) for with HDFC before i take the plunge ?

Last edited by Technocrat : 19th June 2012 at 23:29. Reason: Corrected Typo, Updated 5000k to 5k :)
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Old 4th May 2012, 20:29   #259
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Default re: Help with a home loan!

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Originally Posted by dar3dev|l View Post
I would have opted for SBI but i really dont have the patience to run around pleading to get it approved and disbursed. Moreover they are offering the same ROI as HDFC and with same terms and conditions

Anything i should look out (hidden T&C) for with HDFC before i take the plunge ?
1) If I am not wrong SBI is daily reducing and HDFC is monthly reducing.
2) SBI Maxgain current account is of lots of use when it comes to parking idle funds.
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Old 7th May 2012, 07:38   #260
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Originally Posted by RemingtonSteele View Post
1) If I am not wrong SBI is daily reducing and HDFC is monthly reducing.
2) SBI Maxgain current account is of lots of use when it comes to parking idle funds.
Exactly the reasons why I still would like to go with SBI but the disbursement process is quite a lenghty one even after you have the in principle loan approval letter. I am told that it would take a min of 28 days for the loan disbursement whereas HDFC and Axis Bank do it within 7 working days of property document submission.

SBI does not even give an opportunity to bargain on the home loan ROI.
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Old 3rd July 2012, 22:24   #261
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Question re: Help with a home loan!

I was looking for a home loan for 16 lacs for an apartment under construction worth 40 lacs and was looking to take it from SBI. But I had to rule them out because I wanted the loan within 10 days and these guys take a minimum of 30 days. Next option considered was Axis bank as they promised to get it done within 7 working days. But here the catch was that they wanted my wife to be a co-applicant. I was not too comfortable with that so now I am working out the third option which is LIC HFL. But the problem here is that they won't start disbursement until I pay out my share of the cost which is 40-16=24 lacs. This won't work out as I won't be here when LIC would be required to start the disbursement. So my agent advice that I go for 30 lacs loan and then start the disbursement right away and ask them to stop when 16 lacs is disbursed. But I was concerned about the high EMI I would have to pay if I go for a high loan amount, but the agent told me that there is an option called tranche EMI where in I could decide the EMI amount. But further research showed that this tranche EMI was allowed only till construction is complete. After that they would switch to normal EMI which I fear would be around 30k per month but not sure. If it is 30k then it would become difficult for me. Would really appreciate if someone could confirm if my understanding of tranche EMI is correct or whether we could continue with the tranche EMI even after the construction is completed And secondly if I stop disbursement after taking 16 lacs even though the initial requested amount is 30 lacs, then would the EMI be calculated on the disbursed amount or the approved/requested amount?
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Old 3rd July 2012, 23:56   #262
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Default re: Help with a home loan!

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Originally Posted by UKR View Post
if I stop disbursement after taking 16 lacs even though the initial requested amount is 30 lacs, then would the EMI be calculated on the disbursed amount or the approved/requested amount?
AFAIK, your EMI will re-calculated based on the actual loan amount.
Btw, Bank of Baroda has the option to disburse the loan amount even before you have paid your share in full.

Standard Chartered also offers something called Home Saver which is same/similar to the SBI max gain account. I am thinking of switching over to that from HDFC.
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Old 4th July 2012, 07:54   #263
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Btw, Bank of Baroda has the option to disburse the loan amount even before you have paid your share in full.

Standard Chartered also offers something called Home Saver which is same/similar to the SBI max gain account. I am thinking of switching over to that from HDFC.
@Jaguar - Are you sure about the BOB feature coz IMO no bank would disburse the loan amount until the own source contribution is paid. The bank would need the own source payment receipts before it can process the home loan application.
You are right about the Home saver from Stanchart, the only grouse is the interest rates are way too high than SBI.
I have recently taken home loan from HDFC and the entire process was completed within 7 working days. Worked for me so the option at a later stage would be to shift to SBI Max gain account. I was told that HDFC would not charge me a penny for the loan transfer.
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Old 4th July 2012, 09:13   #264
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Hey Ghodlur,

I too am abt to have the disbursement done via HDFC Ltd. and plan to move to SBI Max later on. Would you be able to share some points i need to check the loan agreement to ensure i am
not charged while i shift ? The fellow said i wont be charged but then it also needs to be documented !
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Old 4th July 2012, 09:27   #265
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Smile re: Help with a home loan!

Quote:
Originally Posted by dar3dev|l View Post
Hey Ghodlur,

I too am abt to have the disbursement done via HDFC Ltd. and plan to move to SBI Max later on. Would you be able to share some points i need to check the loan agreement to ensure i am
not charged while i shift ? The fellow said i wont be charged but then it also needs to be documented !
Exactly my words before I signed the dotted line but the executive/Branch manager said they cant put in on paper as it is subject to the HDFC policies prevailing at the time when the loan transfer happens. As of now HDFC has the policy of not charging for the loan transfer. But knowing HDFC to flip flop later, I am just keeping my fingers crossed. Target is complete 6 months of EMI and then shift.
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Old 4th July 2012, 10:37   #266
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@Jaguar - Are you sure about the BOB feature coz IMO no bank would disburse the loan amount until the own source contribution is paid. The bank would need the own source payment receipts before it can process the home loan application.
You are right about the Home saver from Stanchart, the only grouse is the interest rates are way too high than SBI.
I have recently taken home loan from HDFC and the entire process was completed within 7 working days. Worked for me so the option at a later stage would be to shift to SBI Max gain account. I was told that HDFC would not charge me a penny for the loan transfer.
My friend is currently in the process of finalizing the loan with Bank of Baroda and this is what he told me. I suppose before each bank disbursement, you need to pay a certain percentage of your own source. Need to check the actual details though.

Even I was thinking of switching over to SBI max gain from HDFC but the sad part is, SBI does not do re-finance. They'll only accept new loans it seems. That is the reason to go with StanC. Btw, what is the rate for SBI Max Gain for 30lac? Stan C is offering me 11%. This is anyways better than the 12% I am currently paying to HDFC.
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Old 4th July 2012, 11:40   #267
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but the sad part is, SBI does not do re-finance. They'll only accept new loans it seems. That is the reason to go with StanC. Btw, what is the rate for SBI Max Gain for 30lac? Stan C is offering me 11%
Thats news to me, why would SBI not do refinance. AFAIK they still do but treat it as a new loan thats all. SBI is offering 10.75% for loans upto 30L, not very drastical difference from StanC but still will save you around Rs 25/-+ per lakh on EMI.
Does StanC have higher processing charges than SBI? What about loan closure charges from StanC?
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Old 4th July 2012, 12:14   #268
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Default re: Help with a home loan!

RBI has recently (June 5th 2012) banned all exit penalties. Here is the circular. I did a recent loan transfer to HDFC @ 10.75 monthly rest for a loan over 75 lacs. They charge a 10 k processing fee + Service tax. In Karnataka you need to pay an additional 0.05% as a state levy.
Attached Files
File Type: pdf rbi circular.pdf (50.0 KB, 158 views)
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Old 4th July 2012, 12:37   #269
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Default re: Help with a home loan!

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Originally Posted by ghodlur View Post
Thats news to me, why would SBI not do refinance. AFAIK they still do but treat it as a new loan thats all. SBI is offering 10.75% for loans upto 30L, not very drastical difference from StanC but still will save you around Rs 25/-+ per lakh on EMI.
Does StanC have higher processing charges than SBI? What about loan closure charges from StanC?
I checked with a family friend who works in the SBI and this is what I was informed.
The processing charge after little bargaining is coming up to 9.5k and there is no pre closure charge.

But I may take a hit from HDFC on the pre closure. Although there is a guideline from RBI, it seems it is only applicable for full variable rate loan. Mine was fixed for first 2 years and variable then onwards and apparantly I need to shell out the pre closure charges. Thanks for the document you posted. Will need to go through the same in detail and see if there are such loopholes.
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Old 4th July 2012, 13:23   #270
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Default re: Help with a home loan!

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Originally Posted by Jaguar View Post
Even I was thinking of switching over to SBI max gain from HDFC but the sad part is, SBI does not do re-finance. They'll only accept new loans it seems. That is the reason to go with StanC. Btw, what is the rate for SBI Max Gain for 30lac? Stan C is offering me 11%. This is anyways better than the 12% I am currently paying to HDFC.
There is an offer with HDFC, where you can increase the spread from the RPLR for the bank. It involves paying a transfer amount, which increases the spread, thereby bringing down the loan interest percent.

I was able to lower the percent by 1%, which should start from next month onwards.
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