aryam

WHich bank home loan is good ? I want to take home loan around 30 L,
Any bad thing about axis bank?

aryam

any suggestion or site where one can find pros and cons of diff bank loans?

itzme005

If you want the best interest rate - now gor for SBI / Vijaya Bank / Dena Bank / Bank of Maharashtra. If you want fast processing go for Axis / HDFC

sakelkar

Most PSU banks have similar schemes. Though I have only closely seen BoB and SBI Easy Home Loan schemes and just skimmed through BoI Star Home Loan.


Commanlities among PSU banks such as BoB/BoI/SBI are:

1> Fixed RoI 8/8.5/8.75 for 2/3 years and option to go for floating rate/fixed rate thereafter.

2> Daily reducing balance interest

3> No prepayment penalty

4> Mortgage deed registration charges will be same across all the banks


Given above common things one needs to look at other aspects of expenses/safety provided by home loan

1> Does bank offer free Personal Accident Cover + Home insurance, at least covering the amount borrowed if not the value of property

2> Does bank offer free life insurance cover

3> Any waiver of processing charges

4> Any waiver of legal expenses

5> Any waiver of valuation charges


{ All the points below are valid for special "teaser rate" schemes which are currently floated by SBI and BoB and are valid up until 31March 2010. }


Pros of SBI Easy Home Loan
==========================
1> Interest rate discount for the first 3 years. Very good for people who have aggrasive loan fore closure target like 5 Years or so.

Cons of SBI Easy Home Loan
==========================
1> Very high Property Insurance which "Premium of Rs. 565 per lac of property value". Besides that apperas to be non standard way to calculate property insurance the figure per lac is very high. I think SBI is making up for the interest rate discounts here by charging considerably _high_ premium. A quick calculation of Property insurance with single premium option gave me results which are 60% cheaper

2> No free life insurance cover

3> No free personal accident cover

4> SBI loan processing is bit annoying as per general feedback I have.

Pros of BoB home loan
=================
1> BoB processing is swifter than other PSU banks including SBI/BoI. {very personal opinion}

2> Free Persoanal Accident cover and Home insurance (as per their website)

3> Free Life insurance cover (as per their website)

4> Waiver of processing charges.

5> Possible discount of .25% if employer is in their list of favored employer. This is really subjective but gives some scope to bargain.


Cons of BoB home loan
=====================
1> Interest rate is makred to market. No discount on interest rates. Other than this nothing really that I could sight after above mentioned analysis.


When I actually sat down and compared BoB and SBI home loan, figures told me that, BoB home loan was actually better since it covered life insurance at the similar or only slightly higher (less than 4K) amount paid to the bank at the end of 3 years.

I assumed 9.5/10/11 RoI on loan on BoB to speculate net payable to bank for the first 3 year period to compare it with 3 year scheme floated by SBI in the name "Easy Home Loan".

Recently heard that BoI is offering loan for 8% fixed RoI for first 2 years with free insurance cover. Analysis not yet done on that.

HTH