[NetfreakBombay]

Originally Posted by abhi3284

1) If i get say X Amount from the Buyer, do i pay it to the Builder and take a Maxgain Loan of (75L - X)?

If you take a loan of lesser amount, interest rate might come down. That will help you save significant interest.

If you are saving .1% in interest rate, it would be better to reduce initial loan amount.

[sairamboko]

Hi all - does HDFC Ltd ( the red logo one and not the blue bank logo one ) home loan offer online facility to make part or full pre payments? Also is there any charges for the same ? I did search online but couldn't find clear answers. What are the things to check before signing loan agreement? I have been offered 8.35% ROI . Thanks in advance!

[amitk26]

Originally Posted by abhi3284

Guys, i had applied for SBI Maxgain HL for 75L and it should be done soon.
I am selling off my current Home, for which i have found a Buyer and the Transfer should be done in a month or so. Mostly, my EMI's might start from December and i need some opinions on a couple of scenarios.

1) If i get say X Amount from the Buyer, do i pay it to the Builder and take a Maxgain Loan of (75L - X)?

Which scenario will be most sensible and beneficial for me?

Thanks.

Option 1 is best

(A) To avoid Income tax on capital gains from house property you need to show that the amount you received after selling first property is invested to purchase second so there is no gains in case of (1) there is no ambiguity and you can show it clearly if ever IT asks.

(B) SBI usually asks for various monies which are proportional to the loan amount so on a smaller amount loan you pay less processing fee and other fees.

(C) The interest rate of SBI is lowest for loans below 30 Lakhs.

(D) SBI Forces you to either purchase a term life Insurance policy called Rin Raksha equal to the loan amount for tenure of loan from their sister concern SBI Insurance or find a guarantor for the loan.
Smaller the loan amount lower is your premium outgo or hassle for guarantor.

(E) Less loan liability you have better credit rating you will have for any future loan you need. In MaxGain OD Account though you may park a large sum but notionally they will keep on showing outstanding amount same as outstanding without your parked money.

[clevermax]

If you are taking a home loan at a later part of your life/career (Assuming your monthly earnings are few times higher than the stipulated EMI figure), there is no better loan than the SBI Maxgain.

The more money you park in that overdraft account, the less interest you will end up paying. I took an SBI Maxgain around 2.5 years ago and I've been putting a significant portion of my monthly earnings into the loan account ever since. This is a safe thing to do, because the money isn't going to a black hole like the other loans - you can withdraw the additional amount anytime. But as long as it lies in the loan account, you save interest on that much money.

My loan was 32 Lakhs, and EMI is INR 32000. Now after 2.5 years, my monthly interest figures are only around INR 3000. If I was repaying strictly the EMI amount all throughout, I would still be paying around INR 24000 as interest every month.

Here's the actual plot of the monthly interest amount I paid. This plummeted because I was paying back few times the EMI every month.

[amitk26]

I have couple of question on SBI home loan top up,

1. Do they take current market value of property in to consideration while calculating top up eligibility or the registered value of property at the time of sale ?

2, As interest rate is slightly higher compared to original home loan is the raised interest applicable on top up portion or complete home loan principal remaining + top up?

3. Property is already mortgaged to SBI does the top up loan involve any additional legal verification ?

[Oxy]

Originally Posted by clevermax

If you are taking a home loan at a later part of your life/career (Assuming your monthly earnings are few times higher than the stipulated EMI figure), there is no better loan than the SBI Maxgain.

The more money you park in that overdraft account, the less interest you will end up paying. I took an SBI Maxgain around 2.5 years ago and I've been putting a significant portion of my monthly earnings into the loan account ever since. This is a safe thing to do, because the money isn't going to a black hole like the other loans - you can withdraw the additional amount anytime. But as long as it lies in the loan account, you save interest on that much money.

My loan was 32 Lakhs, and EMI is INR 32000. Now after 2.5 years, my monthly interest figures are only around INR 3000. If I was repaying strictly the EMI amount all throughout, I would still be paying around INR 24000 as interest every month.

How does that work?

I mean, if you had taken a traditional loan and put the same amount of money into the "black hole" via part payment, would your interest still not be INR 3000 as it is now?

What I knew was that Maxgain allows you to withdraw the money that would normally go towards part payment on other loans. I didn't know you could avoid paying such a sizable chunk towards interest.

[clevermax]

Originally Posted by Oxy

How does that work?

I mean, if you had taken a traditional loan and put the same amount of money into the "black hole" via part payment, would your interest still not be INR 3000 as it is now?

Yes. Even in the case of any other loan if you pay back like how I did it, interest part would be going down the same way.

The problem is the black-hole in case of other loans. You wouldn't want to put all your money into it, knowing that you can't withdraw from it if there is a need. In Maxgain, this risk is avoided as the money can be withdrawn anytime. It is like an instant loan anytime you need it.

I have completely paid back my car loan within a very short tenure (SBI, same type as of Maxgain). Now the interest is zero. However, I won't close the loan prematurely because I have a major portion of that money available for withdrawal anytime I need it. If there is a need, I will withdraw, and pay interest applicable until I am able to put that money back into the OD loan account.

Interest calculation is pretty simple - say you have taken a home loan of 30 lakhs. After the loan gets disbursed, assume you are able to put some 20 lakhs back into the loan account after a month. From that day onwards, interest will be calculated only for 10 lakhs (minus the minuscule part of principal that has been considered re-paid as per amortization schedule)

[motorsan]

Have a query about foreclosure letter. I am trying to move my home loan from IDBI bank to SBI. SBI requires a foreclosure letter (which tells the outstanding balance) from IDBI bank to proceed further. IDBI bank is telling that it will take 15 working days to give that letter.

Is it normal for a bank to take that much time to give the foreclosure letter?

[StarrySky]

Originally Posted by motorsan

Is it normal for a bank to take that much time to give the foreclosure letter?

HDFC took about 10 working days to issue a similar letter for me.

[srishiva]

Originally Posted by amitk26

I have couple of question on SBI home loan top up,

1. Do they take current market value of property in to consideration while calculating top up eligibility or the registered value of property at the time of sale ?

2, As interest rate is slightly higher compared to original home loan is the raised interest applicable on top up portion or complete home loan principal remaining + top up?

3. Property is already mortgaged to SBI does the top up loan involve any additional legal verification ?

They take the current value of the property
The new interest is applicable only on the new top up amount (so they are separate and you have 2 EMIs to pay)
They do additional legal verification. Also, you need to extend the mortgage by adding the new top up amount to the original amount

[Pancham]

Guys I need some suggestions. I had earlier posted about my SBI home loan which I had obtained in November 2015. Now the project is complete and I am falling short of few lakhs to get the property registered. The initial sanctioned amount of loan was based on my salary that I received in 2015. Considering my salary has increased since then, is there any way I can get the amount of loan increased ? I asked the bank and the only solution they gave was to get a top up (which is actually like a personal loan at home loan interest). Also I am told that I can only apply for top up after the property is registered. So my only option now is to apply for a personal loan for the amount X (the shortfall) and pay for the registration and then obtain a top up and pay off the personal loan. Is it good idea? Suggestions please.

[Pancham]

Bumping up the thread. Guys please help me with my above query.
I need to take a call this week.

[VKS]

Why dont you balance transfer to a different bank with increased loan amount, but that will come with processing fees, MOD charges etc

In case of PL please note that most banks wont allow foreclosure before an year.Axis Bank is an exception.

There are 3 options 1) Balance transfer 2) personal loan closed with own funds 3) personal loan closed by topup loan, you can choose which is most economical.

Option 2) will be easiest route though.

[amitk26]

Originally Posted by Pancham

Guys I need some suggestions. I had earlier posted about my SBI home loan which I had obtained in November 2015. Now the project is complete and I am falling short of few lakhs to get the property registered. The initial sanctioned amount of loan was based on my salary that I received in 2015. Considering my salary has increased since then, is there any way I can get the amount of loan increased ? I asked the bank and the only solution they gave was to get a top up (which is actually like a personal loan at home loan interest). Also I am told that I can only apply for top up after the property is registered. So my only option now is to apply for a personal loan for the amount X (the shortfall) and pay for the registration and then obtain a top up and pay off the personal loan. Is it good idea? Suggestions please.

Check HL transfer option to another bank with increased limit. SBI has strange process including that of legal verification again of property which is already mortgaged to them so if they say property has to be registered there is no way out.

Personal loan for short duration may be an option but interest rates in PL will be high , I feel HL transfer is best option.

[Pancham]

Originally Posted by amitk26

Check HL transfer option to another bank with increased limit. SBI has strange process including that of legal verification again of property which is already mortgaged to them so if they say property has to be registered there is no way out.

Personal loan for short duration may be an option but interest rates in PL will be high , I feel HL transfer is best option.

I was thinking of taking a personal loan for 5 years but foreclosing it within 6 months.

Originally Posted by VKS

Why dont you balance transfer to a different bank with increased loan amount, but that will come with processing fees, MOD charges etc

In case of PL please note that most banks wont allow foreclosure before an year.Axis Bank is an exception.

There are 3 options 1) Balance transfer 2) personal loan closed with own funds 3) personal loan closed by topup loan, you can choose which is most economical.

Option 2) will be easiest route though.

Option 3 is what I am looking for.

What are the charges like if I transfer the loan to a private bank ? Anyway I am facing a lot of problems with SBI. It's nothing less than a headache to be honest.