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Old 15th June 2009, 15:45   #91
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Do the banks provide the home loan money (cheque/DD) in the name of the builder or in the name of the borrower? I have recently purchased a flat paying full amount to the builder (excluding registration charges) and would now like to go for a home loan? Possible?
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Old 15th June 2009, 15:59   #92
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I think they provide it directly in the name of the builder. If you can manage to convince your builder to give you back your money and accept the bank's cheque then you can still go ahead with your plans.
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Old 16th June 2009, 11:24   #93
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Just noticed that Federal bank has a home loan product in which they reimburse the cost of a flat already purchased: The Federal Bank Ltd -Housing Loans Let me try them

Meanwhile, if anyone has some experience with Federal Bank, do post here.
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Old 16th June 2009, 12:29   #94
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For a new project, does the EMI start immediately with Interest+principal or only the Interest amount till construction is completed ?
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Old 16th June 2009, 12:56   #95
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Axis is worst IMO. I am using ICICI
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Old 16th June 2009, 14:05   #96
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Quote:
Originally Posted by DCEite View Post
For a new project, does the EMI start immediately with Interest+principal or only the Interest amount till construction is completed ?
By default, pre-emi payments are only the interest payments. ICICI calculates this as simple interest on the amount disbursed till now, using the current floating rate.

However, I do know that we have options to start paying EMI from day one. How is this calculated is not very clear to me. Some say that its the EMI we would pay for the total amt to be disbursed, others say its on the amt disbursed till now.

Regards,
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Old 17th June 2009, 12:28   #97
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I have been in talks with few of the banks as i am also looking for home loan. I already paid the first two installment. Here is some of the info quoted by their agent:

AXIS Bank:
Interest = 9%
EMI Per Lac = 900
When EMI starts: For Construction Linked. theie will be Pre -EMI till 18 Months or Full disbursement (whichever is earlier)
Prepayment Penalty: NIL
Processing Fee: 1%


ICICI Bank:
Interest = 9.25%
EMI Per Lac = 920
When EMI starts: NA
Prepayment Penalty: 2% if closed before the first 3 yrs, Else free on condition that prepayment was made from your own sources and using any loan transfer to any bank
Processing Fee: 1%


IDBI Bank:
Interest = 9.25%
EMI Per Lac = 918
When EMI starts: NA
Prepayment Penalty: 2% if the full amount is closed, free if 75% is paid.
Processing Fee: 1%

HDFC

Interest = 9.25%
EMI Per Lac = 920
When EMI starts: NA
Prepayment Penalty: 2%
Processing Fee: 1%

My best bet is going towards AXIS bank, since they are offering the lowest interest rate and NO prepay penalty. So that even if i need to transfer the loan tomorrow I can do without paying any fine.

Another things is I have still 3 more months to pay my next installment, so I would wait for the budget. There might be softening of interest rate and news are coming tht it can be offered @ 7.5 for upto 30L loan
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Old 17th June 2009, 14:36   #98
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Quote:
Originally Posted by ajayr View Post
Just noticed that Federal bank has a home loan product in which they reimburse the cost of a flat already purchased: The Federal Bank Ltd -Housing Loans Let me try them

Meanwhile, if anyone has some experience with Federal Bank, do post here.
My dad has an account in fed bank Chennai. Service is good. No experience with thier home loan product though.
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Old 17th June 2009, 14:45   #99
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Quote:
Originally Posted by abbey4u View Post
I have been in talks with few of the banks as i am also looking for home loan. I already paid the first two installment. Here is some of the info quoted by their agent:
...
My best bet is going towards AXIS bank, since they are offering the lowest interest rate and NO prepay penalty. So that even if i need to transfer the loan tomorrow I can do without paying any fine.

Another things is I have still 3 more months to pay my next installment, so I would wait for the budget. There might be softening of interest rate and news are coming tht it can be offered @ 7.5 for upto 30L loan
Please avoid going for private banks for home loans as they tend to have higher interest rates, especially when the rates are falling. In my case for example, ICICI bank still charges me 12.5% when they offer new loans at 9.5%. Similar difference will be there for other pvt banks between the new loans and existing loans. They also have stricter terms for pre-payment and closure, forget about customer service when asked to transfer loans, provide documents etc.

Please try with banks like PNB, Bank of Baroda, LIC HF etc who gives better rates and also keeps the rates updated for existing customers with falling interests. They also tend to listen to government/RBI orders asking to reduce interest rates unlike pvt banks who are more adamant citing profit margins etc.

However pvt banks are good for deposits and other banking services compared to nationalised banks who tend to be lethargic in customer service.

Last edited by appuchan : 17th June 2009 at 14:47.
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Old 17th June 2009, 14:50   #100
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Quote:
Originally Posted by amohit View Post
By default, pre-emi payments are only the interest payments. ICICI calculates this as simple interest on the amount disbursed till now, using the current floating rate.

However, I do know that we have options to start paying EMI from day one. How is this calculated is not very clear to me. Some say that its the EMI we would pay for the total amt to be disbursed, others say its on the amt disbursed till now.

Regards,
Typically this depends on the payment you are making to the builder. If the builder provides an option to make full payment in advance, then you can avail the full loan amount and start EMI immediately. Most good builders provide you a cash back facility for such advance payments. You also save on interests by starting EMI payment for both principal and interest components.
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Old 17th June 2009, 14:50   #101
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There is some news about tax free slabs to be increased to 2.5 lakh, after taking a home loan. I read that in a hurry. Anybody can clear the air on it? Is it still a bill or has it passed in the house ?
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Old 17th June 2009, 15:00   #102
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Originally Posted by prince_pervez View Post
There is some news about tax free slabs to be increased to 2.5 lakh, after taking a home loan. I read that in a hurry. Anybody can clear the air on it? Is it still a bill or has it passed in the house ?
This is a proposal for the coming budget. Only FM can clear the air on it as of now! In any case it will be with effect from 2009-10 financial year.
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Old 17th June 2009, 15:03   #103
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Originally Posted by appuchan View Post
This is a proposal for the coming budget. Only FM can clear the air on it as of now! In any case it will be with effect from 2009-10 financial year.
Thanks @appuchan. Is it for the existing home loans ones as well ?
I certainly hope so
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Old 18th June 2009, 19:14   #104
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I have a question.

Suppose, for a newly launched project, i take a loan amount of 80% from a bank, and lets say that booking amount for the property is 10%.
Now lets say i choose for construction linked plan where builder demands certain money after stages of completetion.
In such a case, what happens to the remaining 10% - ie, the amount remaining after subtracting 80% loan from 10% booking amount.
When is this 10% paid and it is paid to whom - the bank or the builder ?
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Old 18th June 2009, 20:04   #105
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If bank needs to pay builder upfront than bank would not release 80% payment unless you submit receipts for 20% payment to builder.

If bank would disburse in steps as well, than at each step you need to make your payment first.
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