I have bought a property jointly with my wife and were in need of a home loan of around 60-65 lakhs. We have also gone for a Contruction Linked Payment Plan and the possession of the said property will be towards end of 2016. Together, me and my wife have a CTC of around 20 lakhs p.a. with no existing loans.
When I went to SBI for a Home loan request they placed a condition saying that they will grant loan only if I submitted the original registry of the home that my father owns as guarantee. So did PNB bank. As we did not want to risk another property while buying a new one, we did not go for this option.
We have finally taken a loan of Rs.6078976 with Pre-EMI of Rs.61716 (starting October 2012) from PNB Housing at a ROI of <10.75 + 0.25> for 20 years. We also paid a processing fee of <0.25>. We have been informed that by opting for Pre-EMI, as the actual amount paid to the builder will increase as construction progress, it will help reduce the principal amount and we could end up paying the bank lesser by 20-25 lakhs on the interest of this total loan.
However, There was some mis-selling done in this process and we did end up feeling a little cheated. We were told a rate of 10.5% which after documents processing came to be 10.75% and as the first payment deadline was due , we had no option left but to proceed with the loan from PNBH.
I know I could have done better by referring this website earlier, but I am now trying to focus on what I can do now to help my cause. Hence, I would very much like to seek help of the experts on this forum which might help me in repaying the loan with as liitle extra cost and interest as possible.
So I’d like advice on if it would be advisable to get it transferred to SBIH or LICH or SBI(not sure if they will accept or not) in the near future or at the earliest possible? I am not sure how to calculate the exact costs in this case or how to get started or research this?
Would really appreciate your help.
Thanks,
Pragyan