[nagr22]

Originally Posted by aadya

Things move slower and smoother if remain less demanding by time factor with SBI. We never hurried them. First loan took us 23 days end to end and second one 14 days end to end.

Happy to know you had a good experience with SBI. In my case it has already been 60 days since I initiated my application and they have been asking for more time without any clear reason. The last straw was the managers attitude when we enquired about the delay and at this point my FIL who is a retired SBI employee himself told us to look somewhere else.

Regarding registration with photocopy of DD, maybe builders are comfortable doing it that way as they are generally well equipped to handle disputes legally or by brute. I am buying a resale flat and if I was in my sellers shoes I too would not be comfortable registering a property without first receiving the money. For an individual seller, the hassle of going through legal process to get the property back is simply too much and will take ages to settle even if it is obvious that he will win the case.

[jkrishnakj]

Nagr22- I recently sold my flat. The buyer took a loan from HDFC. What they did was to give me a photo copy of the DD and said that the DD will be given to me only after registration.

I had a separate one page document that I got signed by the buyer that if the DD isn’t handed over, the agreement is null and void. I know legally this page doesn’t hold good, but it was just a comfort.

The DD was handed over by the bank representative on the date of registration and it was a smooth experience.

I think that might be the process for all those sale that isn’t through a builder.

[fordday]

Originally Posted by aadya

Bangalore loan was much smoother with us changing the EMI mandate to different bank and resetting the link from Base rate to MCLR to repo rate at present. It stands at 7.4% at present.

Curious to know how the repo rate is at 7.4%. SBI and other banks too are advertising HL ROI as 6.7% interest rates. Is that a bait?

I too have a maxgain at base rate of 7.4% and wondering if it makes sense to switch to card rate if they are actually offering at 6.7%

[selfdrive]

A relative is looking to get a home loan to cover part of his new flat costs (around 30%). he is paying the majority through proceeds of sale of another property.

ICICI guys are telling him he needs to have a co applicant. He is unmarried, an only child and his parents are retired.

Whats the need to have a co applicant really?
Even if required, can he just get his father to be co applicant?

Is this the same for other banks, say SBI ??

[Avinash_R]

Originally Posted by selfdrive

A relative is looking to get a home loan to cover part of his new flat costs (around 30%). he is paying the majority through proceeds of sale of another property.

ICICI guys are telling him he needs to have a co applicant. He is unmarried, an only child and his parents are retired.

Whats the need to have a co applicant really?
Even if required, can he just get his father to be co applicant?

Is this the same for other banks, say SBI ??

From what I know, a co-applicant is needed to bump up the loan amount eligibility level and can be done with someone who's working (not sure if your relative's father is working and even if he is, will he not be closer to retirement? ).

It's definitely NOT the norm for banks to ask this unless they are not very satisfied with your relative's repayment capacity and want additional source of income behind him or it could be to buff up the loan eligibility.

[sunilch]

Originally Posted by selfdrive

A relative is looking to get a home loan to cover part of his new flat costs (around 30%). he is paying the majority through proceeds of sale of another property.

ICICI guys are telling him he needs to have a co applicant. He is unmarried, an only child and his parents are retired.

Whats the need to have a co applicant really?
Even if required, can he just get his father to be co applicant?

Is this the same for other banks, say SBI ??

The bank is pushing for the co-applicant from their Risk Management perspective only. Your relative should be straight and ask them to stop the processing if he doesn't want to add his parents as co-applicants.

Also, loan co-applicant can be added only when the other person is also a joint owner of the said property. Not without it. So be direct with the bank and take your business elsewhere if needed.

[Pequod]

Originally Posted by fordday

Curious to know how the repo rate is at 7.4%. SBI and other banks too are advertising HL ROI as 6.7% interest rates. Is that a bait?

While the current repo rate offered by most of the major banks is 6.7% or thereabouts, it doesn’t mean that all repo rate borrowers are charged this ROI.

To illustrate, if one had switched to the repo regime for an existing loan in Aug 2020, the prevailing repo-linked ROI at that time would have been applied to the loan account. Banks generally peg the floating ROI for 1 year, meaning in this example any change in repo-linked ROI shall not affect this loan till August 2021. Hope this is clear.

Originally Posted by selfdrive

Whats the need to have a co applicant really?
Even if required, can he just get his father to be co applicant?
Is this the same for other banks, say SBI ??

Co-applicants are generally insisted on to mitigate risk in case of death of the main borrower, since the co-applicant is equally liable for the loan. Even in case the main borrower has sufficient income and repayment capacity, banks (by policy and/or practice) insist on a co-applicant joining the loan, generally spouse in case the main borrower is married, else parents. It must also be mentioned that banks generally do not mandate co-ownership of property - they just need concurrent liability for the loan.

Of course, it’s up to the borrower to decide whether or not they would want to abide by such a condition.

[selfdrive]

Originally Posted by Avinash_R

It's definitely NOT the norm for banks to ask this unless they are not very satisfied with your relative's repayment capacity and want additional source of income behind him or it could be to buff up the loan eligibility.

His loan eligibility is at least 2.5x of the amount he is seeking.

Originally Posted by sunilch

Also, loan co-applicant can be added only when the other person is also a joint owner of the said property. Not without it. So be direct with the bank and take your business elsewhere if needed.

His parents will be joint owners in the property any way.

Originally Posted by Pequod

Co-applicants are generally insisted on to mitigate risk in case of death of the main borrower, since the co-applicant is equally liable for the loan. Even in case the main borrower has sufficient income and repayment capacity, banks (by policy and/or practice) insist on a co-applicant joining the loan, generally spouse in case the main borrower is married, else parents. It must also be mentioned that banks generally do not mandate co-ownership of property - they just need concurrent liability for the loan.

Of course, it’s up to the borrower to decide whether or not they would want to abide by such a condition.

That's ridiculous. The current value of the apartment is more than 4x of the loan amount. I am assuming the property will anyway be hypothecated to the bank till the loan is completely repaid. There is absolutely no reason for anyone to ask for a co applicant.

I have asked him to take his business elsewhere. He will ensure this feedback is provided to the relevant personnel.

Thanks everyone!

[Pequod]

Originally Posted by selfdrive

His parents will be joint owners in the property anyway.

Then rest assured - whichever bank he may approach, they are going to insist on parents being co-applicants.

While co-applicants need not necessarily have co-ownership, all co-owners compulsorily have to be liable for the loan and mortgage, and rightfully so.

[eyesice]

Hello all,

I am planning to sell my 7 year old flat. The prospective buyer has approached ICICI bank for home loan. Initially the buyer told me that ICICI were willing to provide him 90% of the property cost.

Today, the buyer told me that since the total cost of property is less, there is a chance that ICICI will provide him with 100% loan with 0 down payment.

I have a couple of questions -

1. I have never heard banks providing loans with 0% down payment for home loans.
2. Is it possible for me to verify the DD / cheque issued by the bank somehow before registration for verifying authenticity?

[sunilch]

Originally Posted by eyesice

Hello all,

I am planning to sell my 7 year old flat. The prospective buyer has approached ICICI bank for home loan. Initially the buyer told me that ICICI were willing to provide him 90% of the property cost.

Today, the buyer told me that since the total cost of property is less, there is a chance that ICICI will provide him with 100% loan with 0 down payment.

I have a couple of questions -

1. I have never heard banks providing loans with 0% down payment for home loans.
2. Is it possible for me to verify the DD / cheque issued by the bank somehow before registration for verifying authenticity?

1) 90% or 100|% - it makes no difference. Simply take your token from the prospective buyer to ensure he is sincere and wait for his sanction letter to come. Once you see the sanction letter, it will specify the amount of the loan he is entitled/granted. This he should avail before registration.

2) Yes you can. Bank will issue DD only in your name and not a cheque. Before registration, get a copy of the DD and for your piece of mind, visit any ICICI branch and they can do the verification for you if you have any relationship with them.

[eyesice]

Originally Posted by sunilch

1) 90% or 100|% - it makes no difference. Simply take your token from the prospective buyer to ensure he is sincere and wait for his sanction letter to come. Once you see the sanction letter, it will specify the amount of the loan he is entitled/granted. This he should avail before registration.

2) Yes you can. Bank will issue DD only in your name and not a cheque. Before registration, get a copy of the DD and for your piece of mind, visit any ICICI branch and they can do the verification for you if you have any relationship with them.

Thank you for the suggestions. I will definitely try to get the sanction letter and take the DD to an ICICI branch (though I dont have an account with ICICI) and verify the instrument.

[Jaguar]

Originally Posted by sunilch

1Yes you can. Bank will issue DD only in your name and not a cheque. Before registration, get a copy of the DD and for your piece of mind, visit any ICICI branch and they can do the verification for you if you have any relationship with them.

Not always. In my case, HDFC gave a cheque and not DD, since we were in a hurry (both buyer and the seller) to get the registration done by a particular date and the loan processing was taking time. The bank person handed over the cheque to the seller in the registrar's office and our lawyer ensured that the cheque details are captured in the sale deed.

[sunilch]

Originally Posted by Jaguar

Not always. In my case, HDFC gave a cheque and not DD, since we were in a hurry (both buyer and the seller) to get the registration done by a particular date and the loan processing was taking time. The bank person handed over the cheque to the seller in the registrar's office and our lawyer ensured that the cheque details are captured in the sale deed.

That is weird to be honest. Ideally they should not have given a cheque at all. I know there is no law for it but DD is what is more safe and Banks being Banks, they should have given a DD only.

[m8002?]

Banks give something called a banker's cheque which is as good as a DD. There payer is the bank and hence almost 0 chance of bouncing.