Home Loan from a PSU Bank? - Indian Real Estate Forum

realbad · 01-04-10

I'm not aware if similar discussion has happened before or not in this forum.
So could someone provide us the reason why one should go for a PSU bank for a home loan and not any private/MNC bank? I have seen people just blindly looking for any PSU bank without knowing any concrete reason. Is not approaching a psu bank more hassle prone as compared to the private banks? Running for various unnecessary documents, getting signature/approvals from babus, answering to those annoying questions...aren't they more troublesome?

Would like the senior members out here to have their say and clear all our
notions?

realbad · 03-04-10

Still waiting for the response.
doesn't this topic looks worth to be discussed??

pranjandas · 03-04-10

First of all people are not running madly after PSU Banks only. There are private bank customers too for home loans else they will have to close their home loan segment on the contrary they are expanding it! PSU Banks DON'T ask for unnecessary documents, as far as I know, the documents needed by private banks also needed by PSU Banks. There are substantial home loan customers for private banks also, in fact, whomsoever I know who has taken a home loan has taken from either ICICI, HDFC or Axis Bank. They give more loan for same income bracket people as compared to PSU banks. For Example: SBI funds only upto 80% of the cost of the property whereas private banks like HDFC, IDBI etc fund upto 85%. Moreover the concept of "teaser loans" also percolated down to private banks. However RBI has asked banks to stop selling teaser loans. Private banks might be charging a little more than PSU Banks, that could be the trapping for PSU Banks. Govt/PSU employees generally prefer to take home loan from PSU Banks like SBI, PNB etc because they have facility by the company of loan takeover after the employee become eligible for house building advance at a very reduced interest rate (say 4% or 5%). Personally, I would prefer to take home loan from a PSU bank (SBI) so that I can also avail this loan takeover facility by organization after 3 years. This saves the employee substantially on total interest payout.

Quote:

Originally Posted by realbad

I have seen people just blindly looking for any PSU bank without knowing any concrete reason. Is not approaching a psu bank more hassle prone as compared to the private banks? Running for various unnecessary documents, getting signature/approvals from babus, answering to those annoying questions...aren't they more troublesome?

Would like the senior members out here to have their say and clear all our
notions?[/FONT]

realbad · 04-04-10

Quote:

Originally Posted by pranjandas

First of all people are not running madly after PSU Banks only. There are private bank customers too for home loans else they will have to close their home loan segment on the contrary they are expanding it! PSU Banks DON'T ask for unnecessary documents, as far as I know, the documents needed by private banks also needed by PSU Banks. There are substantial home loan customers for private banks also, in fact, whomsoever I know who has taken a home loan has taken from either ICICI, HDFC or Axis Bank. They give more loan for same income bracket people as compared to PSU banks. For Example: SBI funds only upto 80% of the cost of the property whereas private banks like HDFC, IDBI etc fund upto 85%. Moreover the concept of "teaser loans" also percolated down to private banks. However RBI has asked banks to stop selling teaser loans. Private banks might be charging a little more than PSU Banks, that could be the trapping for PSU Banks. Govt/PSU employees generally prefer to take home loan from PSU Banks like SBI, PNB etc because they have facility by the company of loan takeover after the employee become eligible for house building advance at a very reduced interest rate (say 4% or 5%). Personally, I would prefer to take home loan from a PSU bank (SBI) so that I can also avail this loan takeover facility by organization after 3 years. This saves the employee substantially on total interest payout.

Thanks for the insight Pranjan.
was just looking for such expert advice before deciding upon my loan matter.

01-04-10	#1
realbad SUSPENDED Join Date: Feb 2010 Posts: 61 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts	Home Loan from a PSU Bank? I'm not aware if similar discussion has happened before or not in this forum. So could someone provide us the reason why one should go for a PSU bank for a home loan and not any private/MNC bank? I have seen people just blindly looking for any PSU bank without knowing any concrete reason. Is not approaching a psu bank more hassle prone as compared to the private banks? Running for various unnecessary documents, getting signature/approvals from babus, answering to those annoying questions...aren't they more troublesome? Would like the senior members out here to have their say and clear all our notions?

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03-04-10	#2
realbad SUSPENDED Join Date: Feb 2010 Posts: 61 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts	Still waiting for the response. doesn't this topic looks worth to be discussed??