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Old 15th February 2010, 22:04   #1
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Exclamation Question regarding Axis bank teaser home loan rate

MODS: Request you to kindly do not merge this with existing home loan thread, as its a different and unique situation that i am in and not like regular home loan query.

Guys, need some info here regarding Axis bank teaser home loan.

I had applied for a home loan at Axis Bank for a construction linked plan of a flat. The ROI offered was 8.25 % fixed for first 2 years and then floating thereafter with NIL prepayment penalty.
I received the sanction letter about 2 weeks back. Soon thereafter, after RBI directive, Axis bank withdrew the scheme of teaser home loan.

Now i have following questions:

1. Under the construction linked plan, the bank has not yet released any payment to the builder yet. Suppose it releases the first construction linked installment in a few days, will my EMIs (pre-emi) be calculated based on the ROI as given in my sanction letter (8.25%) ? Or will the new floating rate apply since the scheme has ended?

2. The sanction letter mentions that the ROI is fixed for first two yrs at 8.25% for disbursements made till March 31 2009. Does that mean that the construction linked installments that are paid *after* 31st March by the bank to the builder will have to be repayed at the current floating rate and not the teaser rate (8.25%) ?

The bank is also delaying the payment of first installment to the builder since around the same time it cut short its teaser home loan scheme, even though building is done upto ground floor slab. Is there something fishy here, deliberately trying to delay payments so that teaser home loan rate is not applicable for me?

Last edited by DCEite : 15th February 2010 at 22:12.
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Old 15th February 2010, 22:30   #2
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Read the complete terms and conditions mentioned in the small print in the sanction letter e.g. outcomes under force major clauses, regulatory decisions, disbursement criterions etc

saction does not mean disbursement.

Bank has the right to withhold the disbursement till actully the disbursement happens. Even after the disbursement happens, banks can change the terms of the financing under the regulatory/force major clauses.

hence the best person to answer these question is the Bank Manager from where your loan has been processed. He may also be waiting for the circular from his regional / head office to decide what to do.
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Old 16th February 2010, 16:32   #3
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The article mentioned that the first disbursement has to happen before 31st March.

In my case too, HDFC seems to be playing around, but since the project i have decided upon is almost complete, i dont see them delaying the process much.

Lets see how it goes.
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