[dmplog]

Originally Posted by babhishek

I recently paid a 0.56% processing fee to reduce my Maxgain Loan from a rate of 12.05% to 9.95%.

Ditto here in Pune. It was a pleasant surprise when the Branch Manager quoted 0.56% as fees as against my expectation of 1%!!

BTW, does anybody has a SBI contact person for Home Loan processing in Pune? Need it for my friend who wants to process his home loan.

[ani_meher]

Is there any rule that for second home loan, SBI maxgain can't be availed? First home loan is not from SBI.

[dmplog]

Originally Posted by ani_meher

Is there any rule that for second home loan, SBI maxgain can't be availed? First home loan is not from SBI.

As far as I know, there was no such rule. I had two home loans running simultaneously (both SBI Maxgain) untill March 2012. Not sure if there are any restrictions put in recently.

[sa_kiran]

I have taken home loan from SBI and it took, believe it or not, OVER 5 MONTHS. Well, my builder is to blame for the major portion, as he did not give necessary documents.

Now that the agreement signing process is completed, SBI is up to the usual dirty tricks, forcing me to go for insurance, whose premium is over 34,000/-. Well, there is a clause in the agreement about this insurance. The dirty trick of SBI is to arrange signing amidst piles of paper in a hurry. Moreover, the clauses are deliberately made complex (though the language of insurance clause is straight forward). SBI is now saying that they will not disburse the amount without insurance, not surprising though.

Having fought several battles earlier with thuggish ways of private banks, I'm not ready to give up on this one without a fight.

[MaxTorque]

Well I understand your feeling. If you have sufficient insurance from a different company, SBI can not force you to buy a fresh insurance policy from them. Alternately you can consider buying insurance from another provider and communicate it to SBI. I think it should work.

Another option is to ask them for the circular from the bank which mentions this insurance condition. As you have already signed the agreement, I am not sure whether it will work.

[pahwa]

A quick question folks - SBI, other than the processing fee, needs me to pay Rs. 5000 as legal charges, Rs. 1500 as valuation charges?

I reckon these charges are completely baseless and should be covered under the processing fees. The banks today are minting money from salaried buyers!

[pahwa]

Had a super smooth experience with SBI, except one hassle where the lady I was supposed to meet for a pre-fixed appointment took a leave and stopped taking my calls the moment she got to know I am in office.

It took 10 working days from document submission to first disbursal. The key is to arrange all the documents in one go, in proper order and format.

This was for a project pre-approved by SBI.

[dass]

Originally Posted by pahwa

A quick question folks - SBI, other than the processing fee, needs me to pay Rs. 5000 as legal charges, Rs. 1500 as valuation charges?

I reckon these charges are completely baseless and should be covered under the processing fees. The banks today are minting money from salaried buyers!

Not pertaining to SBI, but I guess legal charges are something every bank charges. Some of them have it as part of the processing charges and some call it out separately. How much was your processing charges? I paid around 10k as processing charges which included legal charges as well with Axis Bank.

[hserus]

I have 2 SBI home loans so far (one closed). Good - they are transparent and they don't sanction loan if their survey finds ANYTHING at all funny about the property in question - clear title required, no deviations from approved plan etc etc. Whereas some corporate / private banks will sanction loan for anything at all.

The insurance thing is bad though - and I got stung by it too, to my shame - and I consider myself an aware investor. Note for all - If you got sold a sbi life 2 premium policy as a single premium, see this article and chase your banker. They + sbi life might deny it but at least any future loans you take from them they won't try such games on you.

http://timesofindia.indiatimes.com/b...w/31866910.cms

Note - you can get comprehensive homeowner insurance from for example New India Assurance, Oriental Insurance etc for a much lower cost. Once you produce that insurance policy copy, your banker does not have any leg left to stand on in refusing to disburse the loan.

Originally Posted by sa_kiran

I have taken home loan from SBI and it took, believe it or not, OVER 5 MONTHS. Well, my builder is to blame for the major portion, as he did not give necessary documents.

Now that the agreement signing process is completed, SBI is up to the usual dirty tricks, forcing me to go for insurance, whose premium is over 34,000/-. Well, there is a clause in the agreement about this insurance. The dirty trick of SBI is to arrange signing amidst piles of paper in a hurry. Moreover, the clauses are deliberately made complex (though the language of insurance clause is straight forward). SBI is now saying that they will not disburse the amount without insurance, not surprising though.

Having fought several battles earlier with thuggish ways of private banks, I'm not ready to give up on this one without a fight.

[pahwa]

Originally Posted by dass

Not pertaining to SBI, but I guess legal charges are something every bank charges. Some of them have it as part of the processing charges and some call it out separately. How much was your processing charges? I paid around 10k as processing charges which included legal charges as well with Axis Bank.

Right, all banks charge this but seems unethical to me. Legal and valuation is not something a customer wants them to do. Its banks' duty do it do it for their own sake.

I paid Rs. 6500 as processing fee, 3k as legal charges and 1.5k as valuation charges.

[dass]

Originally Posted by pahwa

Right, all banks charge this but seems unethical to me. Legal and valuation is not something a customer wants them to do. Its banks' duty do it do it for their own sake.

I paid Rs. 6500 as processing fee, 3k as legal charges and 1.5k as valuation charges.

I can understand the frustration. Lot of times, these processing fees are waived off during some special schemes. You can discuss with the branch manager about this possibility.

Anyways, think of it as one more payment towards the cost of purchasing a house, pretty soon you will forget about it.

[sa_kiran]

Originally Posted by pahwa

Right, all banks charge this but seems unethical to me. Legal and valuation is not something a customer wants them to do. Its banks' duty do it do it for their own sake.

I took the matter till Banking Ombudsman. I provided all the proof (mail exchanges and handwritten notes from the bank). I also provided the mail from the bank that they did not inform about the insurance till the last moment. However, the Ombudsman did not consider any of them!! I had heard from a lot of people that the Ombudsman is a toothless organization and is an eyewash. This case proved those points.

[hserus]

I took it to the ombudsman as well - the part about where I was sold a policy that IRDA had ordered a refund on - which is currently under appeal if I am not mistaken.

Got much the same reply as you did - so I guess I will wait for if and when that gets refunded.

[clevermax]

Originally Posted by pahwa

I paid Rs. 6500 as processing fee, 3k as legal charges and 1.5k as valuation charges.

Same with me. My home loan of 32L got approved last month. Don't you think it is a bit on the higher side?

[anujmishra]

Originally Posted by ani_meher

Is there any rule that for second home loan, SBI maxgain can't be availed? First home loan is not from SBI.

The rule is there for third home loan not for second home loan. I just took third home loan and first one is closed. Second one almost at end. I was denied SBI MaxGain as the third loan is termed as CRE (Commercial Retail Exposure). However, I did not see any harm in it. Infact I got less interest rate than MaxGain Loan by 0.2%. Whatever Savings I will be having in Future, I can directly transfer to loan account.