[Prash22]

Originally Posted by diyguy

What's the process to shift? I have two plot loans with LIC and guess am bleeding. I have an account with citi too but I think plot loans are not easy to come by!

Try HDFC. I had a plot loan from HDFC and their interest rate is same as home loan. I was with 10.15% sometime last year.

[sbala]

Originally Posted by diyguy

What's the process to shift? I have two plot loans with LIC and guess am bleeding. I have an account with citi too but I think plot loans are not easy to come by!

You just have to shortlist the new lender and they will assist you on the process. It took me couple of visits to LIC and One visit to Citi bank to do the change over.

[diyguy]

What is the point of no return in an EMI tenure? When does it become not worthwhile to foreclose or balance transfer? For ex I am in my 53rd installment of 120 installments of my plot loan (4 years and 4 months over of a ten year plot loan). At some point the scale tips over on the principle vs interest portions of an EMI. Any thoughts will be welcome.

[veyron_head]

I have a home loan from LIC and it was 10.25 interest fixed for the first two years. The 2 year threshold just got over last month and now the interest, as seen in my online account is a whopping 12%!!.

I am looking to transfer the loan to another bank to save on the interest rates. I am tempted to go in for Citibank which offers 'Home credit account' where you can deposit your savings every month and they would reduce whatever is there in that account from your outstanding principal when they calculate interest for the month.

Do you guys think Citibank is a good option? Another major question racking my brain, I really haven't seen anyone going in for a home loan with a Citi or a ICICI. Everyone seems to go with LIC or SBI or some such public sector bank. Is there any risk that I am not seeing?

Any help would be greatly appreciated.

[serious_maniac]

Originally Posted by veyron_head

Do you guys think Citibank is a good option? Another major question racking my brain, I really haven't seen anyone going in for a home loan with a Citi or a ICICI. Everyone seems to go with LIC or SBI or some such public sector bank. Is there any risk that I am not seeing?

Any help would be greatly appreciated.

Citibank's product is good. SBI has similar product in "MaxGain" which you can explore. SBI seems to be a "price leader" in terms of interest rates.

One thing that you should check is how good the bank is in extending lower interest rates to existing customers. While many banks are very prompt in reducing rates for new customer but they aren't as forthcoming for existing customers.

~maniac

[ILTDrive]

Originally Posted by veyron_head

Do you guys think Citibank is a good option? Another major question racking my brain, I really haven't seen anyone going in for a home loan with a Citi or a ICICI. Everyone seems to go with LIC or SBI or some such public sector bank. Is there any risk that I am not seeing?

Any help would be greatly appreciated.

Go with SBI if you have that option. Though getting the loan is a difficult process, once everything is in place, it is the most hassle free service. LIC is a pain, I had mine and they do not reduce interest with the reduction in rates, but bump up at the first sign of increase in rates. For that matter, any Nationalized bank is a better option, as they are governed by the RBI regulations. For the NBFC's, like LICHFL and CANFIN, they have a different guidelines.

I have shifted to Axis bank and they are good as well. No experience with Citibank though.

[sbala]

Originally Posted by serious_maniac

Citibank's product is good. SBI has similar product in "MaxGain" which you can explore. SBI seems to be a "price leader" in terms of interest rates.

One thing that you should check is how good the bank is in extending lower interest rates to existing customers. While many banks are very prompt in reducing rates for new customer but they aren't as forthcoming for existing customers.

~maniac

I am with CITI Bank. Similar to SBI's Max Gain, Citi bank provides home loan with Home Credit option where you can park additional funds and get savings on your interest. Citi Bank revised my interest rate 4 times - twice up hill and twice down hill. But after recent rate cut by RBI, i am yet to get the benefit from Citi Bank.

Otherwise, Citi Bank provides the best online banking experience. You can prepay/get all tax related documents online. You dont have to visit the branch. Let me know if you have any more questions.

[veyron_head]

Originally Posted by serious_maniac

Citibank's product is good. SBI has similar product in "MaxGain" which you can explore. SBI seems to be a "price leader" in terms of interest rates.

One thing that you should check is how good the bank is in extending lower interest rates to existing customers. While many banks are very prompt in reducing rates for new customer but they aren't as forthcoming for existing customers.

~maniac

Now that's news to me! I would have thought they would give better rates to existing customers because of their history. Thanks. Will check.

Originally Posted by ILTDrive

Go with SBI if you have that option. Though getting the loan is a difficult process, once everything is in place, it is the most hassle free service. LIC is a pain, I had mine and they do not reduce interest with the reduction in rates, but bump up at the first sign of increase in rates. For that matter, any Nationalized bank is a better option, as they are governed by the RBI regulations. For the NBFC's, like LICHFL and CANFIN, they have a different guidelines.

I have shifted to Axis bank and they are good as well. No experience with Citibank though.

Completely agree! LIC is such a pain. My 12% is almost close to a car loan.

Originally Posted by sbala

I am with CITI Bank. Similar to SBI's Max Gain, Citi bank provides home loan with Home Credit option where you can park additional funds and get savings on your interest. Citi Bank revised my interest rate 4 times - twice up hill and twice down hill. But after recent rate cut by RBI, i am yet to get the benefit from Citi Bank.

Otherwise, Citi Bank provides the best online banking experience. You can prepay/get all tax related documents online. You dont have to visit the branch. Let me know if you have any more questions.

Yes. One of the major reasons I am considering these banks is because I can do most stuff online. Except for seeing my balance online, I have go to the branch for everything else in LIC.

How much is their processing fee and interest rate currently? do they negotiate on both? Please let me know.

[sbala]

Originally Posted by veyron_head

Yes. One of the major reasons I am considering these banks is because I can do most stuff online. Except for seeing my balance online, I have go to the branch for everything else in LIC.

How much is their processing fee and interest rate currently? do they negotiate on both? Please let me know.

They charged me a flat 4k as processing fee which i felt nominal. I believe there was some offer on processing fee/application fee that time. On the interest rate, I got 10.25%. After some negotiation, they gave Home credit benefit with this interest rate. Ideally, interest rate of Home loan with home credit benefit will be little higher by 0.25% to 0.5%

[krish_veera]

Hi Veyron_head,

I am also in the same boat as you are. I took a home loan for 20 lakhs for a period of 12 years with 10.75% fixed interest rate for the first 3 years. Just last month, the fixed period got over. The interest rate is hovering at 12% right now.

Looks like Citibank also have a similar loan like Max Gain. Do we need to have a savings account with them to avail this offer. I have a Citibank Credit Card though.

Please let me know if you decide on transferring the loan to other financial institution.

Thanks,
Veera

Originally Posted by veyron_head

I have a home loan from LIC and it was 10.25 interest fixed for the first two years. The 2 year threshold just got over last month and now the interest, as seen in my online account is a whopping 12%!!.

I am looking to transfer the loan to another bank to save on the interest rates. I am tempted to go in for Citibank which offers 'Home credit account' where you can deposit your savings every month and they would reduce whatever is there in that account from your outstanding principal when they calculate interest for the month.

Do you guys think Citibank is a good option? Another major question racking my brain, I really haven't seen anyone going in for a home loan with a Citi or a ICICI. Everyone seems to go with LIC or SBI or some such public sector bank. Is there any risk that I am not seeing?

Any help would be greatly appreciated.

[veyron_head]

Originally Posted by krish_veera

Hi Veyron_head,

I am also in the same boat as you are. I took a home loan for 20 lakhs for a period of 12 years with 10.75% fixed interest rate for the first 3 years. Just last month, the fixed period got over. The interest rate is hovering at 12% right now.

Looks like Citibank also have a similar loan like Max Gain. Do we need to have a savings account with them to avail this offer. I have a Citibank Credit Card though.

Please let me know if you decide on transferring the loan to other financial institution.

Thanks,
Veera

Sure..have just started the due diligence process. Had been to SBI yesterday..theirs is at 9.75 for men and 9.70 for women. The lowest I guess.The processing fee is also waived off as part of an offer.

[diyguy]

I have been talking to HDFC to take over two of my plot loans. My outstanding loan is 12 Lakh each. I was told about a MOD fee that was introduced in 2011/12. I need to pay Rs. 5100 towards registrar fee for registering each loan. However when speaking to SBI, I was told that this Rs 5100 is only if the loan amount exceeds 25L. Can anyone confirm this? Am I liable to pay the registrar fee of Rs. 5100 irrespective of the loan amount?
Here is the excerpt from the SBI checklist.
Attachment 1388472

[Night Rider]

I have taken a home loan of Rs 30 Lakh for 15 years (10.15% fixed interest rate for 5 years) from LICHFL. My target is to close the home loan within 5 years (the fixed interest rate period).

In order to achieve my target, I have been making yearly part payments combined with increasing the EMI over a period of time. The balance as on date is less than Rs 10 Lakh. I am planning to make further part payment some time in Sep-15. My dilema is to go for this payment and close the loan within 5 years or let it continue beyond 5 years to save on income tax. (I'm paranoid thinking about the interest rate going up after the 5 years and corresponding increase in loan tenure)
Please advise.

[Night Rider]

I took the loan in 2010.

[vrprabhu]

Originally Posted by Night Rider

My dilema is to go for this payment and close the loan within 5 years or let it continue beyond 5 years to save on income tax. (I'm paranoid thinking about the interest rate going up after the 5 years and corresponding increase in loan tenure)

Income Tax Rebate is allowed on (a) the interest on the housing loand and (b) repayment towards principal portion of the home loan.

Even if you are paying tax at the highest rate i.e. 30%, effectively you are continuing to bear interest @ 7.10% (10.15 minus 30% of 10.15), not considering the benefit you are getting towards principal repayment.

Going by the current market rates, it is not likely that the interest after the fixed period may go up substantially - given the fact that you have repaid the loan in advance, LICHFL may be inclined to give you some rebate once it turns into floating rate.

By taking the home loan you have created an asset. As long as the asset appreciates at a rate higher than the interest you incur, you shouldn't worry too much....