[the_skyliner]

Originally Posted by lambuhere1

Was discussion about the home loan with friends, and during the recession times, its a very hard decision to make.

Looking at the scenerio, if we loose our jobs and are not able to pay the EMI's, are there any insurance products that take of payment of the EMI on account of loss of job ?

Was wondering if anyone is aware of any product like this ? Understand that the premium might be high, not sure though!

You can get home insurance which covers your outstanding loan amount in few unforeseen scenarios like, accidental death, disability, fire, critical illness, etc as well as 3 EMIs in case of job loss. HDFC ERGO has a decent product and other banks has it as well. I heard the one from SBI is most VFM. I have details of HDFC ERGO in my inbox, if you want I can send you. Just PM me you email address.

Buying home is more of an investment than spend. It will add to your assets list though loan will seem to be a big liability. Add to that the tax benefit on principle and interest as well.

In worst case you can sell off at zero or a very minimal loss.
Just make sure you get a good deal and not pay more than market rate.

Cheers!

[lambuhere1]

Originally Posted by the_skyliner

Buying home is more of an investment than spend. It will add to your assets list though loan will seem to be a big liability. Add to that the tax benefit on principle and interest as well.

Skyliner, thanks a ton for the email doc. It was helpful

Guys, need help. Did anyone avail Tranche Based EMI Home loan from HDFC/LICHF ?

it appears to be a better choice as some payment goes towards principal during Pre-emi stage.

Was trying to dig more information on it, but only data I could locate was from the link below

http://www.hdfc.com/loans/hm-loan-repay-options.asp

Tranche Based EMI

Customers purchasing an under construction property need to pay interest ( on the loan amount drawn based on level of construction) till the property is ready. To help customer save this interest, we have introduced a special facility of Tranche Based EMI. Customers can fix the installments they wish to pay till the time the property is ready for possession. The minimum amount payable is the interest on the loan amount drawn. Anything over and above the interest paid by the customer goes towards Principal repayment. The customer benefits by starting EMI and hence repays the loan faster

Help

[shavian]

I am guessing this is the right thread for my query below. Kindly excuse if that isnt the case.

I am in the process of a tri-party agreement, where I am buying a flat from a seller directly before they have registered the property. The property in about complete. The tri-party agreement is between the builder, seller, and me. The seller has paid in full to the builder.

I had applied for a loan from PNBHFL for about ~70 lacs. Some 25 days back PNBHFL cut the demand draft to pay to the seller directly for the full loan amount. However, they made the draft on the assumption that they will get a NOC from the builder's bank (Andhra bank) in 2-3 days. The builder defaulted and hasn't produced the NOC till date, however indicates that it will be produced in a day or 2. The builder is a class A builder in Bangalore. They have given one NOC from their own side, but it is the NOC from their financing back which is pending.

My problem is that PNBHFL channel manager tells me that, since the loan has been "disbursed" (disburse = demand draft ready) I am being charged interest on it and the first EMI has also been deducted a few days back. However, the money is in limbo - neither in PNBHFL account and not has it been paid to the seller. This is being done to "safeguard" me, the loan taker.

Additionally, he says that this is not the bank's fault. This is their normal operating procedure - to keep the draft ready under the assumption that the NOC from the builder's financing bank will normally come through in a couple of days. He says, they do this to be "ready" for registration etc.

I questioned him on who is liable for this interest of 25 days on the loan amount? Clearly I shouldn't be, since the monies hasn't been paid out to the seller at all. He says, that this is the builder's fault and they are the ones who should compensate. I find this a bit odd, since I am sure there is no written guarantee form the builder that the said NOC will be handed over in 2-3 days.

To me, its clearly the bank's fault, since they cut the demand draft before the documentation was complete. Its black and white in my eyes. However, they are not budging.

The property is clear and ready for possession.

Would really appreciate some advise on what my options are here. Is this really a normal "operating procedure"? Shouldn't the bank be waiting for each and every document to be in their possession before cutting the demand draft?

[phamilyman]

I have a question here:
http://rbidocs.rbi.org.in/rdocs/noti...HF290613FL.pdf

says on page 14 that Loan to Value ratio cannot cross 75% for loans above 75L.


But HDFC agents are saying that they can give us 80% of agreement value. Are they correct? Am I missing something? Please advise.

[NetfreakBombay]

Originally Posted by phamilyman

But HDFC agents are saying that they can give us 80% of agreement value. Are they correct? Am I missing something? Please advise.

That is why HDFC Ltd is not a bank (and probably never will be). It opened a new entity for bank.

Agents are correct.

[aryasanyal]

Originally Posted by phamilyman

But HDFC agents are saying that they can give us 80% of agreement value. Are they correct? Am I missing something? Please advise.

Originally Posted by NetfreakBombay

That is why HDFC Ltd is not a bank (and probably never will be). It opened a new entity for bank.

Agents are correct.

NetfreakBombay is correct. HDFC/LIC HFL/DHFL, etc. are NBFCs and do not fall under the direct purview of RBI. They come under NHB.

RBI guidelines mostly do not apply to these entities.

[vasanthjn]

Originally Posted by shavian

I am guessing this is the right thread for my query below. Kindly excuse if that isnt the case.


My problem is that PNBHFL channel manager tells me that, since the loan has been "disbursed" (disburse = demand draft ready) I am being charged interest on it and the first EMI has also been deducted a few days back. However, the money is in limbo - neither in PNBHFL account and not has it been paid to the seller. This is being done to "safeguard" me, the loan taker.

I questioned him on who is liable for this interest of 25 days on the loan amount? Clearly I shouldn't be, since the monies hasn't been paid out to the seller at all. He says, that this is the builder's fault and they are the ones who should compensate. I find this a bit odd, since I am sure there is no written guarantee form the builder that the said NOC will be handed over in 2-3 days.

Would really appreciate some advise on what my options are here. Is this really a normal "operating procedure"? Shouldn't the bank be waiting for each and every document to be in their possession before cutting the demand draft?

Hi,

What PNBHFL told you is absolutely bull s**t. The bank can charge you interest only from the date you receive the DD/Cheque from them, otherwise they cant.
I have taken a HL from HDFC and I collect the cheque for the builder only 2/3 weeks after informing them. For example, the cheque may have a date of 1st June 2014 and if I have collected the cheque from HDFC on 19th June, the interest is charged only from 19th June, the reson being the fund is still in their account and not transferred to the borrower/builder's account. Make it very clear on this to PNBHFL.

Additionally, in general the HFC generally dont give a DD, they mostly issue a Cheque only, which is accepted by everyone since it has been issued by a HFC of repute.

[vasanthjn]

Originally Posted by lambuhere1

Skyliner, thanks a ton for the email doc. It was helpful

Guys, need help. Did anyone avail Tranche Based EMI Home loan from HDFC/LICHF ? it appears to be a better choice as some payment goes towards principal during Pre-emi stage. Was trying to dig more information on it, but only data I could locate was from the link below

Help

Hi,

I have availed the Tranche Based EMI from HDFC. This is really helpful if you have additional funds to spare. This is nothing but you start the full EMI even before the full disbursal of the loan. I have done this and have repaid nearly 10% of the Loan Amount even before the full disbursal of the loan. Once the full disbursal is complete, HDFC will automatically convert this into normal EMI.

Hope this helps.

[vdi]

Did anyone opted for home loan from DHFL?

How reliable they are?

[dass]

Originally Posted by vdi

Did anyone opted for home loan from DHFL?

How reliable they are?

I tried getting my home loan shifted from LICHFL to DHFL, I logged into their website, provided my details, a ticket number was generated and sent to me as SMS. I got a call in the next couple of days from one of their executives that they would be sending someone to collect the documents and the loan would be serviced within 15 days. That was the last I ever heard from anyone in DHFL. I did not bother to call them back either.

A point to note, all these NBFC (LICHFL, DHFL, HDFCHFL) are not governed my RBI guidelines, so most of them do not offer any option for you to reduce your interest rate in the future. I would suggest that you stick to one of the banks, PSU or private.

[Kumar R]

Originally Posted by dass

A point to note, all these NBFC (LICHFL, DHFL, HDFCHFL) are not governed my RBI guidelines, so most of them do not offer any option for you to reduce your interest rate in the future. I would suggest that you stick to one of the banks, PSU or private.

Housing Finance Companies are regulated by National Housing Bank (NHB). As a general rule NHB adopts most RBI policies (as they are not only in the similar regulatory field but NHB is a wholly owned subsidiary of RBI). NHB will doubtless have directions/circulars on such subjects. Maybe this circular will help.

[dass]

Originally Posted by Kumar R

Housing Finance Companies are regulated by National Housing Bank (NHB). As a general rule NHB adopts most RBI policies (as they are not only in the similar regulatory field but NHB is a wholly owned subsidiary of RBI). NHB will doubtless have directions/circulars on such subjects. Maybe this circular will help.

Been there, seen that with LICHFL and also know of Canara HFL too. These are just guidelines, which they do not follow.

[1lokesh]

Hi, can anyone tell me if home loan companies are still charging processing fee for a new loan? Last when I took a loan from HDFC and then LICHFL, they waived off this component. This was about 4-5 years back.

Case in hand is for HDFC, who is asking for a processing fee of INR 5k for a loan disbursement in a project yet to be launched. Under subvention scheme.

Any help will be highly appreciated.

Cheers!

[condor]

Question:
What is a negative spread ? If the bank is offering a higher negative spread is it good ? Can it be accepted ?

[vrprabhu]

Originally Posted by condor

What is a negative spread ? If the bank is offering a higher negative spread is it good ?

Spread is the difference (margin the bank wants to earn) which is built into the rate offered to the customer.

Crudely put - when you put money in a fixed deposit you get 9.00%; you take a loan, you are charged 11.00%. Spread is 2.00%.

All rates to be quoted by Banks are tied to their Base Rate (This is a RBI regulation).

AFAIK, no Bank can give a loan with a negative spread.

If you can provide any other info of what exactly is the offer, it will throw more light on your question.