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POSTED BY ON February 3, 2014 4:53 pm COMMENTS (5)
I have an offer of a 10.25% vanilla home Loan from HDFC vis a vis a 10.5% HSBC smart loan. While a smart loan will help me pay off the loan whenever I have spare funds, the rate at HDFC is lower. On the other hand, while there have been doubts about HSBC, at the end of the day it’s still a bank and governed by RBI unlike HDFC, who is free to change rates and claiming to have a multiple conditions around part payments and balance transfers.
Pls help. This decision is killing us!
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Dear Rg19, as no reply from you, should WE assume that you have been killed? Clue taken from your original queries last line. 🙂
thanks
Ashal
General advise without defaming any bank.
Choose a bank that does not have a track record of raising interest rates within months of you taking the loan. Do not take any additional frills like bundled insurance products it will make your choice of switching the loan to another bank easier. So if the company raises rates move out immediately.
Dear rg19,
If the Smart loan of HSBC allows you with the flexibility to park and withdraw funds and if that is what you are looking for then it would be a good option to opt for the same. Besides the interest rate differential of 0.25% would not make much of a difference.
Also, HDFC being a Housing Finance Company is governed by the National Housing Bank (NHB) and has to adhere to the regulations of the NHB.
Regards,
Credexpert
http://www.credexpert.in
Frankly a difference of 0.25% does not make any difference. Don’t let that be a criteria while choosing your loan
Dear Rg19, why are you not considering SBI Max Gain over HSBC’s smart home loan?
Thanks
Ashal