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POSTED BY ON May 8, 2012 9:59 pm COMMENTS (18)
Hi Manish & Nandish, you have not given the results of the voting of the best home loans? Further if you create a comparative statement of diferent home loans provided by different banks, something like you created of Term Insurance, it will be really helpful. It may incule things like interest rates, maximum loan terms, Maximum loan amounts, prepayment charges, loan processing fees, change of loan provider etc. Do think about it & make something like that.
I have to take home loan from Allahabad Bank (as suggested by my builder -Maitreya developers, Nagpur because it has the lowest interest rate of 10.5% and IDBI bank as suggested by you guys offers 11.25% interest rate).What you guys have to suggest in this case?
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Dear Ashal,
Most of the banks must be checking all the details of the project including the land details before approving, is it not? then how it is possible that SBI is not approving and other public sector banks like Allahabad bank, IDBI and Union bank of india are approving the same?
Will there still be risky if i go with Allahabad bank?
i think i will also go to SBI once to enquire what it has to say about this project. Then i will think and take final decision ? What do you think?
Dear Arvind, each bank has it’s own set of rules & to check that same rules are implemented or not there are employees. Now these employees are all human & it’s possible that in the influence of the advocates & other technical person, these employees are not as much stringent or tight in following the rules as SBI people are.
if possible to you, please visit SBI Branch & check on your own for their version of story.
Thanks
Ashal
Dear Ashal thanks for your insightful replies,
One more thing, I can apply for home loan in more than 1 bank and select which suits me best? Please correct me if I am wrong?
If I apply in 1 bank and it approves the same, it is not a binding on me to take the same from this particular bank, if I want to take it from some other bank?
Dear Arvind, instead of applying to multiple banks & then opting from one bank, I w’d ask you to search first, which bank is suitable to you & then apply there only. The reason is, each bank ‘ll demand set of property + your financial papers & how many copies of the same ‘ll you provide. More over there is cost involved in the form of processing fee & other charges which is non refundable.
Yes you can refuse to accept the loan from a bank even after the same has been sanctioned.
Thanks
Ashal
Dear Ashal & others,
Thank you veru much for your replies. Some more things are bothering me, if you can give some suggestions i will be grateful to you. Actually I asked the person from the builder’s side who is helping me in getting home loan from Allahabad bank and other things that i want to apply in SBI for home loan, but he says that it will be a waste of time there, as they had also approached the bank for some previuos customers. The bank asked for some documents related to land i.e. related to previous owners of the land, which they could not provide.
So should i not try in SBI for loan? And go by his recommendation for Allahabad bank?
One more thing he asking me for registration of the Agreement to Sale and payment of the Stamp duty on giving him 20%(of basic price of the house, which is under construction, possession after 1 year or so) token amount and final disbursement of the bank loan amount. He says that by doing so i will not have to pay anything when Sale deed is registered.
Is what he is saying is correct? Because what i have heard from my friends and relatives that the registration of house is being done after possession.
I am confussed how should i proceed???? Please help??
Dear Arvind, SBI demanded certain land related papers & same could not be arranged by your builder, Is it not a danger sign in itself?
Wait & think for a while for your situation. Do not get too much emotional for that dream home.
Please search for other properties also in the same area.
Thanks
Ashal
Should i surrender my existing LIC policies if i am falling short of money for my EMI of home loan?
Dear ARvind, if your cash flow is tight, please surrender all these LIC policies but at the same time, please do purchase a term cover of st least 12-15 times of your yly income + home loan.
Thanks
Ashal
Can the existing LIC policies be of any use in taking of the home loans?
Dear Arvind, existing LIC policies are of no use for getting a loan.
Thanks
Ashal
What ways can be use to bargain with banks for home loans and with builders for buying a house?
Dear Arvind, from banks you can ask to waive off processing or any other charges.
From builder you can bargain for a better location, floor, & of course price. Also force your builder that the loan ‘ll be from your choice of bank & not from builder’s choice.
Thanks
Ashal
Some other questions?
It is necesary to pay stamp duty and register a under construction house before taking home loan?
or can it be registered after taking possession on completion of construction?
Further is it fine if the builder/developer says of making the sale deed of the house instead of actual price/ticket price, of lesser price that of the amount for which home loan is being taken?
And are there any suggestions which can be taken into considerations before taking home loan or buying a house from a builder/developer?
Dear Arvind, please clarify – are you asking for applying home loan or disbursal of loan amount for that registration & stamp duty thing?
From your original query it seems that your builder has APF (Approved Project File – in simple words, bank has already checked the property papers in details & the property is ready for loan approval) with Allahabad bank that’s why he is recommending the same.
I ‘ll always ask you to go with SBI & there too with Max Gain product, no matter your builder has APF or not with SBI.
Thanks
Ashal
Dear Ashal, Thanks for your replies. For home loan , you are asking me to go with SBI with Max Gain product. What does this “Max Gain product” exactly means?
Dear Arvind, please check the below link, if you are still in doubts, you may ask here again.
http://localhost/jagoforum2/how-to-maximize-the-gains-in-sbi-maxgain-homeloan-account/2635/
Thanks
Ashal
Hi Arvind,
Here I am sharing few infos which might help you. In my view go for public sector banks like SBI,UBI etc. Though interest rates are keep changing, one of my friends Home Loan from IDBI at 10.5%, there processing charge is 1%. Where as I had borrowed from Bank of India at 11% interest. So please keep your eyes and compare rates from all banks. But I think there must be some way to bargain with branch managers.
thanks.
Arvind
A comparision chart is not suggested because interest rates and penality etc keep changing and we need constant things in the chart .
More than just interest rates , look for other things like processing , after loan service , perpayment support and charges etc etc .. Based on the poll results , I can see that most of the people recommend SBI , HDFC and LIC , however in smaller banks IDBI and Axis at at top position . Allahabad Bank was not in the list , may be becasue of small reach , I cant say that they are good or bad here .
Also I know you do not want to go with Axis, because of one incident I posted on our blog ,but then its one incident and each bank has those kind of incidents
Manish