[adithya.kp]

I am looking for a home loan. Loan eligibility is not a problem. Things that matter are, interest rate, customer service, quality of legal verification. ( of-course, I will also do my own legal check) and processing time. I have shortlisted SBI, Kotak and HDFC. I found SBI very professional. But their interest rate in higher than the other two. The sales guy says they are the best because they do a thorough legal verification. (Is this true ?). HDFC offered the lowest interest rate. To my surprise, most of their branches have a very poor google review. Can someone help me select the best among these three?

[adithya.kp]

Hi Guys,
Any input?. Update: I have dropped Kotak (Since they are small in home loan category) and HDFC (Since its an NBFC and the reviews are poor)
But added Bank of Baroda (Since its in Bangalore, it was a Vijaya bank branch before). Today I visited a BOB branch. Its a very small office, and looked old. Not much crowd. Very courteous manager. Their interest rate is much lower than SBI. They claim no hidden charges, forced insurance etc. On the other hand, SBI manager (though very courteous) is always busy. The specific branch is always crowded.
Can someone throw some light on SBI vs Bank of Baroda in terms of customer service, quality of legal verification ?

Originally Posted by adithya.kp

I am looking for a home loan. Loan eligibility is not a problem. Things that matter are, interest rate, customer service, quality of legal verification. ( of-course, I will also do my own legal check) and processing time. I have shortlisted SBI, Kotak and HDFC. I found SBI very professional. But their interest rate in higher than the other two. The sales guy says they are the best because they do a thorough legal verification. (Is this true ?). HDFC offered the lowest interest rate. To my surprise, most of their branches have a very poor google review. Can someone help me select the best among these three?

[Sran]

Originally Posted by adithya.kp

Can someone throw some light on SBI vs Bank of Baroda in terms of customer service, quality of legal verification ?

Bank of Baroda, Bank of India, Canara Bank and Punjab National Bank are the Big four nationalised banks other than SBI. You should not have any problem in dealing with any of the nationalised banks let alone these four. Every bank do their own due dilligence and all have almost same criteria.

[tc_rides]

Go for HDFC for a hassle free service and professionalism. SBI works best if you’re availing MaxGain facility. Don’t trust any loan provider for doing fact checks of the property on behalf of you. Better take a paid legal advice and get a personalized opinion.

[Pancham]

Guys, I have a an SBI Home loan which I have servicing for more than 6-7 years now. The EMI has been fixed since the beginning. Today when I logged in to the online account I see that my EMI has been increased by a few thousands. They are still deducting the old EMI amount. So this is in fact impacting my CIBIL score.

My question is how did they all of a sudden increase the EMI? Are they allowed to do this without my authorization? Even if interest rates go up, my understanding was that the interest amount will go up and principal gets reduced. But in my case they have increased the entire EMI amount.

Any help here will be helpful.

[thanixravindran]

Originally Posted by Pancham

Guys, I have a an SBI Home loan which I have servicing for more than 6-7 years now. The EMI has been fixed since the beginning.

My question is how did they all of a sudden increase the EMI? Are they allowed to do this without my authorization?

Any help here will be helpful.

Any change in interest rate shall either change the tenure or monthly EMI amount. This is part of the loan agreement one signs. Generally banks increase or decrease the tenure because EMI is standing instruction and you need to change often whenever there is a corresponding increase or decrease in interest. Some times when you already have taken maximum tenure, they will change the EMI amount. They have to notify you by post for this change and you need to submit fresh standing instruction. So please visit in person and sort this out with the Bank.

[Pancham]

Originally Posted by thanixravindran

Any change in interest rate shall either change the tenure or monthly EMI amount. This is part of the loan agreement one signs. Generally banks increase or decrease the tenure because EMI is standing instruction and you need to change often whenever there is a corresponding increase or decrease in interest. Some times when you already have taken maximum tenure, they will change the EMI amount. They have to notify you by post for this change and you need to submit fresh standing instruction. So please visit in person and sort this out with the Bank.

This is what I dont understand as my current rate of interest is way lower than what it orginally was. I will visit the branch today.

Thanks a lot.

[balenoed_]

Is it equally easy to get a home loan to buy a house on re-sale (A 9 yr old property) compared to getting a loan for buying a brand new house? And in terms of interest rates, documentations, processes.. is it the same or does getting a loan for a resale purchase not that easy?

[One]

Originally Posted by balenoed_

Is it equally easy to get a home loan to buy a house on re-sale (A 9 yr old property) compared to getting a loan for buying a brand new house? And in terms of interest rates, documentations, processes.. is it the same or does getting a loan for a resale purchase not that easy?

Everything with respect to rates/ charge is same including them checking the legality of the property in the first place. Documentation is key, they ask for entire chain of agreements of all previous owners. Rest everything is smooth if everything is in order.

[adithya.kp]

I have almost finalised BoB. ( Lowest interest rate of 7.45). But I see that Citibank is offering 6.95. Does anybody have any experience with citibank home loan?

[batish]

Originally Posted by adithya.kp

But I see that Citibank is offering 6.95. Does anybody have any experience with citibank home loan?

Aren't they shutting their shop here? From what I had read, Axis is taking them over. So, if the ROI is on floating basis won't Axis rates apply?

[adithya.kp]

Thanks. You are right. I didn't realise that.

Originally Posted by batish

Aren't they shutting their shop here? From what I had read, Axis is taking them over. So, if the ROI is on floating basis won't Axis rates apply?

[balenoed_]

Any IDBI home loan customers here? Any comments on their service?

[sumeethaldankar]

A friend of mine is interested in buying a flat which is ready possession but said flat does not have a OC. I told him to avoid it but he insists on same as it is close to the upcoming metro. Will a bank "legally" provide a home loan on a flat without an OC. I understand loan can be processed with under the table arrangements with dubious characters approving same. But by default is it even legal for a bank to give loan on flat with above mentioned issue?

There is no hope for getting the OC as the builder has refused to do so and the society is running like that for many years ie without OC. They have trouble getting constant water supply and have to be sustained on basis of tankers.

[sunilch]

Originally Posted by sumeethaldankar

A friend of mine is interested in buying a flat which is ready possession but said flat does not have a OC. I told him to avoid it but he insists on same as it is close to the upcoming metro. Will a bank "legally" provide a home loan on a flat without an OC. I understand loan can be processed with under the table arrangements with dubious characters approving same. But by default is it even legal for a bank to give loan on flat with above mentioned issue?

There is no hope for getting the OC as the builder has refused to do so and the society is running like that for many years ie without OC. They have trouble getting constant water supply and have to be sustained on basis of tankers.

Most bank won't provide the loan for the same reason. Some NBFCs may provide however.