[vinodbijlani]

Hi,
i did see posts about better interest rate. pnb seems to be providing good interest rate 10%. hdfc 11%
wht i m looking at low preclosure cost. hdfc is 5%. is that a standard or there are lower options which u guys have come across.
thanks

[esteem_lover]

find out from PNB. I think the nationalised banks do not have any preclosure penalties.

[vinodbijlani]

thanks esteem lover for quick reply. will talk to pnb on monday. any idea if i would need a reference/guarantor or an account with them?
thanks again

[esteem_lover]

I don't think you need any of the things mentioned by you. You will have to have an account in some bank, a good credit history, a pay certificate or the latest IT return, some docement for residential proof, like a ration card or a telephone bill. maybe some other small things i have left out. i would advice you to take the loan from a nationalised bank only.
cheers

[theMAG]

Moderators, pl delete this post. It got repeated

[theMAG]

The nationalized banks in general have little to no preclosure fees. And the option of flexi EMIs

[vinodbijlani]

checked with pnb preclosure is 2%
does SBI also have preclosure charge too?

[greatpower]

SBI also has 2% charge.

[itwasntme]

PNB MAY ask for guarantor in case you have not stayed in your city for long enough etc. Try IOB. They didn't ask me for a guarantor.

[vkochar]

Originally Posted by vinodbijlani

checked with pnb preclosure is 2%
does SBI also have preclosure charge too?

Is preclosure 2% that you have mentioned on the Outstanding amount ?

For example - If I take a Loan for 3lacs for 3 yrs. Lets say EMI is 10000 P.M. After 2 Years I want to finish this off, then do I pay 2% on the balance 1.2L left. I might sound like a fool asking these stupid questions, but sometimes these banks really make a fool out of us.

Cheers !!

[vinodbijlani]

thts a good question to ask - pay 2% on the balance 1.2L left?
will ask

[narayan]

foreclosure is typically on the PRINCIPAL outstanding as on date of closure ...
further, its always advisable to take in WRITING the foreclosure/preclosure charges when u take the loan itself bcos these things are typically a call the bank takes while u close and depends on people u know in the bank, ur other relationship with the bank by way of a/cs u hold etc...

so pls take in writing at the outset itself...

[WhiteKnight]

Originally Posted by narayan

bcos these things are typically a call the bank takes while u close and depends on people u know in the bank, ur other relationship with the bank by way of a/cs u hold etc...

@narayan, thank you!. Good to have guys in the know.

So, essentially it is a hit and try policy. Some unsuspecting customer may pay whatever being asked by the "MNC" bank. If the MNC bank bangs its head agaist a customer who is strong, and has time and resource to kick back, then the bank retracts its claws and goes hiding

Sounds similar to the "late payment fee" so conveniently used by credit card vendors

[gmano]

Originally Posted by WhiteKnight

@narayan, thank you!. Good to have guys in the know.

So, essentially it is a hit and try policy. Some unsuspecting customer may pay whatever being asked by the "MNC" bank. If the MNC bank bangs its head agaist a customer who is strong, and has time and resource to kick back, then the bank retracts its claws and goes hiding

Sounds similar to the "late payment fee" so conveniently used by credit card vendors

yes. you are correct. Almost all the Banks follows this kind of procedure, including the nationalized banks. RBI and and the Government have to straighten this situation and give some clear guidelines regarding lending and recollection procedures.

While taking loan also, we are not at discretion to ask the bank to change some clauses in the agreement, if we need the loan we just have to sign whatever papers they show us.

[narayan]

Originally Posted by gmano

yes. you are correct. Almost all the Banks follows this kind of procedure, including the nationalized banks. RBI and and the Government have to straighten this situation and give some clear guidelines regarding lending and recollection procedures.

While taking loan also, we are not at discretion to ask the bank to change some clauses in the agreement, if we need the loan we just have to sign whatever papers they show us.

all banks do this..im a banker...so am not trying to defend any bank. but thing is in the loan agreement all these would be speicified...

typically foreclosure charges are meant to put a penalty on cms bcos ( banks when they lend to a client for , say 3 years, they expect a certain interest income and also create certain liability profiles to fund this )...

at the end of day, as a customer we need to be aware and take the best deal from our point of view...