I have a query regarding home loan process.

There is a gap of an employment (of 6 months) in my last year's form 16. LICHF is unable to process the file due to above mentioned deviation. Can anyone let me know about other options based on their past exp in getting home loan sanctioned? Any other bank which would waive of this deviation in form 16?

Appreciate your feedback on this.
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  • Originally Posted by andy912
    I have a query regarding home loan process.

    There is a gap of an employment (of 6 months) in my last year's form 16. LICHF is unable to process the file due to above mentioned deviation. Can anyone let me know about other options based on their past exp in getting home loan sanctioned? Any other bank which would waive of this deviation in form 16?

    Appreciate your feedback on this.


    I don't think any PSU bank will process loan for you.
    Try Axis bank in private sector.. they may proces your loan.
    Even for PSU banks... you may put your case with other financial supports.. like total years of experiance, previous loan history, investments you already have etc. But in abscence of a strong backing of these things, PSU banks would not lend you.
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  • Originally Posted by amjamirs2
    I don't think any PSU bank will process loan for you.
    Try Axis bank in private sector.. they may proces your loan.
    Even for PSU banks... you may put your case with other financial supports.. like total years of experiance, previous loan history, investments you already have etc. But in abscence of a strong backing of these things, PSU banks would not lend you.


    Thanks for the info.

    I am checking with Axis bank and waiting for their reply. As you mentioned, supportive documents have been provided (they were provided to LICHF too). Any other bank or HF should I be looking at?
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  • Originally Posted by andy912
    Thanks for the info.

    I am checking with Axis bank and waiting for their reply. As you mentioned, supportive documents have been provided (they were provided to LICHF too). Any other bank or HF should I be looking at?



    There should not be any problem as long as you can provide the supportive documents. You may provide them 2 years F-16's to remove any element of doubt. LICHF is pretty cool on documentation these days..
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  • Originally Posted by Rishabh_Jain
    There should not be any problem as long as you can provide the supportive documents. You may provide them 2 years F-16's to remove any element of doubt. LICHF is pretty cool on documentation these days..


    Well, LICHF needed 1 year form 16, there's where the hurdle was/is.
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  • Try GICHF! They are not too stringent!
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  • For me, just go with the small conservative PSUs, one with the lowest SPREAD - between base rate and floating home loan rate.

    A spread of 0.5-1% is OPTIMAL. Ofcourse, the small PSUs would not have pre-payment penalities -- or go with the ones that DONT.

    The one with the lowest EMI THEN should be the target.

    Dont worry about the interest rate differential of 0.5-1% !!!!!!!

    Think long term-- NOT short term gains !

    Also, DONT ever go with NBFCs like HDFC,LICHF or GICHF -- they have NOT migrated to base rate and once the initial fixed period is over -- you will be on BPLR (for hdfc its 16.5%)-- royally %$#%.
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  • Originally Posted by pcpune
    For me, just go with the small conservative PSUs, one with the lowest SPREAD - between base rate and floating home loan rate.

    A spread of 0.5-1% is OPTIMAL. Ofcourse, the small PSUs would not have pre-payment penalities -- or go with the ones that DONT.

    The one with the lowest EMI THEN should be the target.

    Dont worry about the interest rate differential of 0.5-1% !!!!!!!

    Think long term-- NOT short term gains !

    Also, DONT ever go with NBFCs like HDFC,LICHF or GICHF -- they have NOT migrated to base rate and once the initial fixed period is over -- you will be on BPLR (for hdfc its 16.5%)-- royally %$#%.


    Thx! I understand what you say about spread. HFCs have not migrated to the base rate and not sure when would that happen.

    My concern is the deviation in form 16, and I believe small conservative PSUs would be more conservative in raising a concern about the deviation! (my guess though)

    Can you please let me know few names to bank upon?
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  • try IDBI bank

    Originally Posted by andy912
    Thx! I understand what you say about spread. HFCs have not migrated to the base rate and not sure when would that happen.

    My concern is the deviation in form 16, and I believe small conservative PSUs would be more conservative in raising a concern about the deviation! (my guess though)

    Can you please let me know few names to bank upon?
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  • Originally Posted by andy912
    Thx! I understand what you say about spread. HFCs have not migrated to the base rate and not sure when would that happen.

    My concern is the deviation in form 16, and I believe small conservative PSUs would be more conservative in raising a concern about the deviation! (my guess though)

    Can you please let me know few names to bank upon?


    Well, I would target UBI,Syndicate,BoB,Central,Canara and Corporation Bank
    Others may be Canara and Dena, I personally found UBI very good but that was 3-4 years back, so best to check whats on offer,

    A single home loan document - without any frills/fancies are best
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  • Originally Posted by pcpune
    Well, I would target UBI,Syndicate,BoB,Central,Canara and Corporation Bank
    Others may be Canara and Dena, I personally found UBI very good but that was 3-4 years back, so best to check whats on offer,

    A single home loan document - without any frills/fancies are best


    Thanks for the list. I will check them out.
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  • Waiting for AXIS reply, it seems it should not be a problem.

    Strange thing I noticed regarding HDFC (in my recent conversation with bank) is that they can not proceed until project is approved by them. Is it true?
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  • Originally Posted by pcpune
    For me, just go with the small conservative PSUs, one with the lowest SPREAD - between base rate and floating home loan rate.

    A spread of 0.5-1% is OPTIMAL. Ofcourse, the small PSUs would not have pre-payment penalities -- or go with the ones that DONT.

    The one with the lowest EMI THEN should be the target.

    Dont worry about the interest rate differential of 0.5-1% !!!!!!!

    Think long term-- NOT short term gains !

    Also, DONT ever go with NBFCs like HDFC,LICHF or GICHF -- they have NOT migrated to base rate and once the initial fixed period is over -- you will be on BPLR (for hdfc its 16.5%)-- royally %$#%.



    Dear friend PCP,

    Thank you for all ur valuable inputs.
    Can you explain what is meant by SPREAD ? How is it going to
    affect the EMIs we will be paying in the long term.

    regards
    unlikely
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  • As said earlier, Spread is the difference between the existing base rate and the existing floating rate for home loan.For if a bank has a base rate of 9% and home loan rate of 9.5%, Spread is just 0.5%.

    Instead if another bank has base rate of 7.5% and floating home loan rate of 9.5%, the spread is 2%.

    More Spread = More you are charged over and above others or new customers.

    Hence, even if the "floating home loan" rate is 9% or 9.5% or 10%, go with the bank with the lowest SPREAD.

    In Long Term, the bank cannot increase the "Base Rate" as it pleases as ALL ITS Loans become costlier.

    And when the bank decreases base rate, your effective home loan rate would decrease.

    I think worst example is HDFC Bank - a base of 7.5% and floating rate of 9.5% or 10%. Now the bank has 2-2.% of play -- teaser schemes, new lower rate schemes for new customers,etc,.

    Hope you understand -- Importantly just Google for "Base Rate"
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  • PCPune, now I'm confused. My loan agreement stays the spread will always remain same, so if bank changes base rate, my rate will also change by equal amount. Then it doesn't matter what the spread is as long as I am getting a good rate. What am I missing here ?
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  • Originally Posted by rendezvous
    PCPune, now I'm confused. My loan agreement stays the spread will always remain same, so if bank changes base rate, my rate will also change by equal amount. Then it doesn't matter what the spread is as long as I am getting a good rate. What am I missing here ?


    Lower spread (for example, 1.5%) as compared so someone else having spread of 2% will give you an edge provided that both banks have same base rate.
    Spread seems to be calculated based on credit risk, tenor, and product of the home loan selected.

    useful info can be found here - http://www.investmentyogi.com/planning/bplr-to-base-rate.aspx
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