Home Loan from GIC or DHFL ?

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ravihpa

ravihpa

Forerunner
Hey guys,

I know this is a technology forum, but you guys have always been very helpful, and I am in a dilemma, hence would appreciate any input in this :)

I am trying to procure a home loan, but a huge chunk (40%) of my income on the salary slip is "incentives", hence other nationalized banks and institutions like LIC HFL, SBI, etc., are only providing me a home loan according to the "fixed" portion of my salary slip, per se the 60% remaining amount, which is not sufficient.

Now, I have been informed of two financial institutions that can provide me a good amount of home loan, and they are known as GIC and DHFL.

Now, I am being a little bit skeptical in going ahead with these institutes as they are 1) Private 2) Not government, and after googling, I have read horror stories about DHFL. Not much about GIC though.

About DHFL, I read many horror stories where they increased the rate of interest after 2 months of application and didn't reduce it.

What would you guys suggest ? Anyone had any experience with these institutes ?

Any info on this would be highly appreciate.

Thanx a lot in advance guys :)
 
I would strongly advice not to go with private NBFCs. GIC and DHFL are amongst them. And the simple reason to avoid them is that their cost of borrowing is higher which they pass on to the borrowers.
Their rate of interest will always be higher compared to banks. You will rarely see drop in rates but they will be first to increase it.
If its not urgent, I suggest to postpone the loan till the time you are eligible as per banks rules.
 
How about HDFC Bank ? I have yet to speak with a HDFC executive, but I think they consider 50% of the amount of incentives earned after cross checking 6 salary slips.

Edit: It's not that much of an emergency but I have to get the home loan sanctioned by 15th Feb, 2013, give or take 10 more days, till 28th Feb, 2013.
 
ravihpa said:
How about HDFC Bank ? I have yet to speak with a HDFC executive, but I think they consider 50% of the amount of incentives earned after cross checking 6 salary slips.

Edit: It's not that much of an emergency but I have to get the home loan sanctioned by 15th Feb, 2013, give or take 10 more days, till 28th Feb, 2013.
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HDFC bank is fine. My preference would be like this:
1. Public Banks.
2. Private banks.
3. Public NBFC
4. Private NBFC(avoid).
 
You at least need to apply home loan before 4-6 month of actual need. If you IT returns is STRONG & Earning is Good than go with Nationalized bank like SBI (I always have worst experience with them). Never ever accept 6 month vacation period by ANY BANK it will cost you bomb after 6 month.

ravihpa said:
How about HDFC Bank ? I have yet to speak with a HDFC executive, but I think they consider 50% of the amount of incentives earned after cross checking 6 salary slips.

Edit: It's not that much of an emergency but I have to get the home loan sanctioned by 15th Feb, 2013, give or take 10 more days, till 28th Feb, 2013.
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Well, can you give me some example of Public NBFCs ? I think HDFC is one of them, not sure though.

Is there any list on the internet, which lists all these banks so I can get in touch with their representatives and get it going ?
 
ravihpa said:
Well, can you give me some example of Public NBFCs ? I think HDFC is one of them, not sure though.

Is there any list on the internet, which lists all these banks so I can get in touch with their representatives and get it going ?
Click to expand...

HDFC is private NBFC. You can contact LIC housing which is public NBFC.

LIC Housing Finance Limited

Here is a site which gives you comparison of loans provided by almost all lenders. Check it out.
Home Loan: Home Loan Interest Rates: Compare Housing Loans & Apply - BankBazaar
 
Dont forget to read the whole terms and conditions before accepting the loan.

There are plenty of other nationalized banks like BOB, IOB, OBC, Dena, little SBI's etc. Go to each one of them. I am pretty sure some of them will give you the loan.
 
GIC Housing Fin is a govt company like LIC Housing Fin.

Public sector banks are normally the cheapest, but have the biggest nuisance value - they feel that they are doing you a favor by giving you a loan.

There are a bundle of websites site apnaloan.com. Check out.
 
Jambumali said:
GIC Housing Fin is a govt company like LIC Housing Fin.

Public sector banks are normally the cheapest, but have the biggest nuisance value - they feel that they are doing you a favor by giving you a loan.

There are a bundle of websites site apnaloan.com. Check out.
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Wow, is that true ? Are you sure about that ? The person I am dealing with says he has very good links with GIC and that he can get me loan on full amount without any tension. If GIC is to be trusted and is almost equal to LIC HFL, then all my tensions are gone. Should I go ahead with GIC then ? Reason I was holding back was I thought GIC was a private company like DHFL.
 
Ummm don't think that is true. Quoted from their website.

The Company was promoted by General Insurance Corporation of India and its erstwhile subsidiaries namely, National Insurance Company Limited, The New India Assurance Company Limited, The Oriental Insurance Company Limited and United India Insurance Company Limited together with UTI, ICICI, IFCI, HDFC and SBI, all of them contributing to the initial share capital.
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What to do yaar, so confusing. LIC and other banks are only giving 13 to 14 lac loan whereas my requirement is 16 lacs. So far only DHFL (I don't think I will go for them) and GIC are giving me 16 lac loan.

I called GIC office in Thane yesterday and they said there is a new scheme where interest will be fixed @ 10.5 for 5 years and then floating. Not sure it's good or bad. So confusing :(
 
get that 2 lakhs from somewhere else , dont go for these fixed and floating , you be paying more in the end, get 14 from hdfc or other banks and get that 2 from somewhere else
 
Rather than going for the rate of interest it would be making sense to check out there emi per lac and check what is the total amount you pay back given the combination of current fixed rate for the period the loan is on a fixed rate and assuming the variable rate of the remaining period to be equal to current rate.

bankbazaar will give you the total of the same.

In my case SBI at those days was quoting a rate of 8% fixed for year and then variable after two years on.Now, in case of HDFC, they were offering 8.5% for first year, then 9.5% and variable after that.

In my case hdfc was about 3.6k more per annum than sbi on a 12 lac loan, but I went for hdfc. Currently my loan has completed the two financial year and I am paying 9.75 variable rate.

Usually the issue with private sector bank is that people perceive and rightly so, that when the rate go up, they hikes rate but when rates come down they dont offer the benefit to the existing customers. New customers will obviously offered a sweeter deal.

That one of the reasons that RBI introduced base rate regime for bank. NBFC are outside there purview I guess, not sure on that and hdfc still offers loan on PLR. but if you look at the current scenario, with base rates also the bank has done the same stuff as with PLR and changed the spreads for new customers.

Check out this article.
Why YOU are paying high EMIs on your home loan - Rediff Getahead

At the risk of being labelled a troll, I believe if you are ok with the emi amount and you think the property is acceptable, then please go ahead.

Slightly off topic, but believe its relevant
For properties in the budget segment from smaller developers and the property is not approved, then go for either the bank which has the property approved or for private sector banks as the process of getting the property approval is simpler.

When other banks are charging 10% a private nbfc will charge .25% extra.

So for a 20 year loan of Rs. 15 lacs
@10% interest rate you pay a emi of 14,976
@10.25% you pay a rate of 15,229

Thats 300 bucks extra per month or 3600 extra a year.
Or if you take a look you will end up paying 72000 extra.

Whats the prospective saving on getting a loan from sbi ? Calculate that and decide if the figure is fine with you or not.
You will have cases where if you take two loan from same banks one in 2008 and one in 2012, then the earlier loan even though fixed is @ 10.75% and the newer loan is at 10.25%.

Most private sector banks will allow you to move to the lower rate but by paying a conversion fee of 0.1-0.25% of the loan outstanding. And ofcourse if you still are paying too much, you can prepay a loan and scout for a another loan.
 
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Wow dude, REALLY APPRECIATE the effort you took to make that post. Thank you so much :)

I would love to go with SBI, but I have heard that they take a very long time in getting the loan sanctioned. Do you think it's worth it ? I have to get the loan sanctioned before February 15th.

Also, how good is Axis bank ?
@kippu dude, even I am thinking of doing the same. Lets see how it goes :)
 
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axis is fine , sbi is fine too but they ask you take some insurance and also ask you get construction agreement done, just ask the builder the approved banks list , pretty hdfc be there , i think right now its 10.25 for less than 30 , go with it...axis is also good enough
 
the personal approval part doesnt take much time. Its the property approval which will take up the most time.

My thumbrule would be
1. Big developer/preapproved project/project under processing already by some other flat buyer in the same block - Go to SBI, 3 months is more than enough. Even a month in enough.
2. Not in the above case, avoid avoid avoid
ravihpa said:
Wow dude, REALLY APPRECIATE the effort you took to make that post. Thank you so much :)

I would love to go with SBI, but I have heard that they take a very long time in getting the loan sanctioned. Do you think it's worth it ? I have to get the loan sanctioned before February 15th.

Also, how good is Axis bank ?
kippu dude, even I am thinking of doing the same. Lets see how it goes :)
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bitsandpieces said:
the personal approval part doesnt take much time. Its the property approval which will take up the most time.

My thumbrule would be
1. Big developer/preapproved project/project under processing already by some other flat buyer in the same block - Go to SBI, 3 months is more than enough. Even a month in enough.
2. Not in the above case, avoid avoid avoid
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Hmm....well I did not get the "avoid avoid avoid" part but I have selected the flat. It's a 3-storey building constructed in the year 2000 (means it's 11 years old and is in its 12th year), registered co-op hsg society, road side, ground floor flat. The current party is the second party. All registry and society papers are PERFECT. I double checked every paper.
 
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