Home Loan
- Thread starter dinjo
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Any bank will have hidden charges. Govt banks have these charges a little less than private banks.. I would suggest going to some not well known nationalized banks for home loans. Last year I got a home loan from United bank of India .. Zero processing fee, zero documentation fee. Interest rates does not differ much from the nationalized banks. its hardly .25% which is 500rs difference per year per lakh.
If you have proper documents, always to go nationalized banks.
If you have proper documents, always to go nationalized banks.
The slightly lower interest rates in nationalized banks is a bait IMO. While there are people who did not have any bad experience with banks like SBI, I would personally suggest against nationalized banks or LIC unless you don't care about a trouble free experience. I know a few people who have horror stories to tell about SBI/LIC. Customers are often treated like sh1t by the loan officers. Often, there will be long delays for "processing" the application. You will be made to run around them where ever and whenever they want you. One guy was even asked to give a bribe by an SBI loan officer to get his application approved. A colleague who applied for a loan from LIC was made to run around them for a month over this and that all in the name of verification before the loan was approved. When he wanted to pre-pay the loan, he was asked to pay a bribe if he wants to get it done quickly without verification of payment source and wavier of pre payment charges.
I preferred to go with HDFC even if the interest rate is a bit higher. My 46.5Lac loan was approved within 3 days of applying and their agent came to their house to collect the documentation. The release process was also trouble free.
I preferred to go with HDFC even if the interest rate is a bit higher. My 46.5Lac loan was approved within 3 days of applying and their agent came to their house to collect the documentation. The release process was also trouble free.
vpraveenis
Explorer
I had a bad experience when applying loan for renovation from SBI.. they made us run from pillar to post and it took them 6 months to approve a renovation loan for just 5Laksh. The payment came 3 months after we completed the renovation. I will never go to SBI ever again even if they offer slightly lower rate.
For home loan I went to a private bank and though they have a slightly higher ROI, I had to go to the bank just once and everything was taken care by phone/email and can be tracked Online. Payments eere released well on time to the builder and had no problems. Hassle free even if I have to pay a bit more
For home loan I went to a private bank and though they have a slightly higher ROI, I had to go to the bank just once and everything was taken care by phone/email and can be tracked Online. Payments eere released well on time to the builder and had no problems. Hassle free even if I have to pay a bit more
+1 to SBI's Max Gain.
Congratulations on getting yourself a house. In the Indian middle class economy, getting the house is one major milestone in life. Once you have that you've crossed a big hurdle of your financial plans. I personally fell elated when I bought my first house.
Coming to home loans, try and find whether some other company also offers a product similar to Max gain. This would work out cheaper in the long run even if the interest rate for this product is 0.5% higher than regular interest rates in the same bank.
Assume that you've taken a loan of 50L through Max gain. They would create a current account where the negative balance is shown as 50L. You have to keep depositing your EMI in this current account, so the outstandings keep reducing and the aim is to achieve zero outstandings i.e. full loan repayment. The interest that you're charged is calculated on the outstanding amount in this account. Now the real magic starts when you start depositing money over and above your EMI. This account allows you to deposit even small amounts (technically you can deposit Rs. 10 too !!) to this current account. Now just imagine that you put in your entire salary (let's assume this to be 1L) in this account on the 1st of the month. Till the time the amount remains in your maxgain account, you will not be charged the loan's interest rate on the same. If not for this account, you would have kept the amount in your saving bank and earned a 3.5% interest. Here you'd end up saving 10%-3.5% = 6.5% interest rate !! (assuming the loan interest rates are 10%). The bigger advantage is liquidity. You can pull out the 1L whenever you want during the month! They even give you a debit card so you can use your ATM for this. It's very convenient. If you diligently start putting all your income in this account as you would have done in any other savings account, you will find that the interest being charged is now on a reduced amount, thus the EMI you are paying would have more principal component than interest component and eventually you'd end up pre-paying the loan much earlier than you have anticipated!
Trust me, after a few years, you'd surprise yourself and wonder how you ended up paying the loan in such a small duration.
Congratulations on getting yourself a house. In the Indian middle class economy, getting the house is one major milestone in life. Once you have that you've crossed a big hurdle of your financial plans. I personally fell elated when I bought my first house.
Coming to home loans, try and find whether some other company also offers a product similar to Max gain. This would work out cheaper in the long run even if the interest rate for this product is 0.5% higher than regular interest rates in the same bank.
Assume that you've taken a loan of 50L through Max gain. They would create a current account where the negative balance is shown as 50L. You have to keep depositing your EMI in this current account, so the outstandings keep reducing and the aim is to achieve zero outstandings i.e. full loan repayment. The interest that you're charged is calculated on the outstanding amount in this account. Now the real magic starts when you start depositing money over and above your EMI. This account allows you to deposit even small amounts (technically you can deposit Rs. 10 too !!) to this current account. Now just imagine that you put in your entire salary (let's assume this to be 1L) in this account on the 1st of the month. Till the time the amount remains in your maxgain account, you will not be charged the loan's interest rate on the same. If not for this account, you would have kept the amount in your saving bank and earned a 3.5% interest. Here you'd end up saving 10%-3.5% = 6.5% interest rate !! (assuming the loan interest rates are 10%). The bigger advantage is liquidity. You can pull out the 1L whenever you want during the month! They even give you a debit card so you can use your ATM for this. It's very convenient. If you diligently start putting all your income in this account as you would have done in any other savings account, you will find that the interest being charged is now on a reduced amount, thus the EMI you are paying would have more principal component than interest component and eventually you'd end up pre-paying the loan much earlier than you have anticipated!
Trust me, after a few years, you'd surprise yourself and wonder how you ended up paying the loan in such a small duration.
One more point to note regarding the max gain account - you would get withdrawal transaction rights only after the possession.
I dont think what one of posts about SBI is true. Atleast in Kerala. I have 3 personal experiences and 4 or 5 from family, also first hand and few from friends and colleagues.
SBI offers very nice offers, dunno if its the best est though. People were nice and courteous, never kept us hanging. In few cases they sped up the process for my family members who were travelling abroad. My second brother did twice for home loan and the second time, there were some formalities we had to do at the branch they said no need to come again. They just took care of all those on basis of the first and just called him for signing. A Thursday. Monday the guy called and said all done and approved. Amounts ranged from 40 to 1 crore in all the ones I am talking about.
Officers from Trivandrum, Pathanamthitta, Kozhikode and Kollam.
Guess its just different people at different places.
SBI offers very nice offers, dunno if its the best est though. People were nice and courteous, never kept us hanging. In few cases they sped up the process for my family members who were travelling abroad. My second brother did twice for home loan and the second time, there were some formalities we had to do at the branch they said no need to come again. They just took care of all those on basis of the first and just called him for signing. A Thursday. Monday the guy called and said all done and approved. Amounts ranged from 40 to 1 crore in all the ones I am talking about.
Officers from Trivandrum, Pathanamthitta, Kozhikode and Kollam.
Guess its just different people at different places.
Party Monger
Juggernaut
SBI experience depends on the branch and even officer to officer.
Also while getting a loan, Tax planning is a very important part. If you get it correct, you can save more.
> Interest can be claimed as a deduction under Section 24. You can claim up to Rs. 150,000 or the actual interest repaid whichever is lower. (You can claim this interest only when you are in possession of the house)
> Principal can be claimed up to the maximum of Rs. 100,000 under Section 80C. This is subject to the maximum level of Rs 100,000 across all 80C investments.
There is more scope if you are joint holders of loan and land with a wife that has seperate income (Different return of income.)
Get a loan from a good place that is responsive to you. You will need to show the statement provided by the lender showing the repayment for the year as well as the interest & principal components of the same. So fancy schemes like the ones mentioned above need to be looked into. Cause the Income tax officers are kind hard people to convince
Also, check if the rate of tax are floating rates or fixed. Country like ours you want things to be certain.
Also while getting a loan, Tax planning is a very important part. If you get it correct, you can save more.
> Interest can be claimed as a deduction under Section 24. You can claim up to Rs. 150,000 or the actual interest repaid whichever is lower. (You can claim this interest only when you are in possession of the house)
> Principal can be claimed up to the maximum of Rs. 100,000 under Section 80C. This is subject to the maximum level of Rs 100,000 across all 80C investments.
There is more scope if you are joint holders of loan and land with a wife that has seperate income (Different return of income.)
Get a loan from a good place that is responsive to you. You will need to show the statement provided by the lender showing the repayment for the year as well as the interest & principal components of the same. So fancy schemes like the ones mentioned above need to be looked into. Cause the Income tax officers are kind hard people to convince
Also, check if the rate of tax are floating rates or fixed. Country like ours you want things to be certain.
IDBI is fully government owned bank. I would suggest pay a visit to your nearest Union Bank Of India branch[DOUBLEPOST=1387562714][/DOUBLEPOST]
every bank will calculate.
Go with Max Gain OD account.. check more information here..
http://www.jagoinvestor.com/2013/05/sbi-maxgain-home-loan-review.html
http://www.jagoinvestor.com/2013/05/sbi-maxgain-home-loan-review.html
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