Any idea which bank is offering lowest home loan interest rate?
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  • Originally Posted by nilesh_phalke
    Any idea which bank is offering lowest home loan interest rate?

    can i get through out fix interest rate for 15-20 years from any bank?
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  • Please enquire in bank of baroda ,

    they have very good folating rates 8.75 (8.5 for customers mantaining 1 lakh quarterly balance in S/B) ...about fixed, I think they are offering 10% not sure.
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  • Originally Posted by nilesh_phalke
    can i get through out fix interest rate for 15-20 years from any bank?


    I don't think so. I will suggest u to go for floating as rates will be stable or may go down.
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  • SBI has indicated that there would be 100 bps point hike in Sept 09.
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  • Not very sure about the lowest interest rate, but Bank of Baroda is providing a home loan 8.75% for a tenure of 15 years and if you have a Quarterly Average Balance 1 Lac then 0.25% less, If you get your loan processed before 15th August then no processing charges. Fixed interest rates are 1% more then the floating rates and will change every 3 years.
    SBI has come up with a new plan as well - 1st year 8% 2nd and 3rd year 9% and from the 4th year whatever is the Floating rate applicable.
    LIC Hsg Finance also has an interest rate of 8.75%.

    I would suggest that get your loan processed from a Nationalised bank for the checks they carry out for a property. Although painful an requires a lot of follow up but still lot better then any of the private banks in the longer run.
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  • There is no such thing like fixed rate.Even though we call it as fixed rate they are not fixed.If you read the loan agreement carefully,Banks have mentioned that they can review the fixed interest rate after 3-5 years regularly.No one can predict interest rate for next 15-20 years so Banks also don't guarantee fixed rate for such a long period.
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  • Factors that influence your loan rate.

    Originally Posted by nilesh_phalke
    Any idea which bank is offering lowest home loan interest rate?

    It all depends as interest rates are nego. It is based on your income & the amount of loan you are opting for, it's tenure, your relationship with the bank, company or salary account in the bank, previous credit history (you are star rated for all loans you have opted for till date irrespective of bank & type of loan) etc.

    Generally, PSU Banks have lower interest rates but getting one is hassling compared to private ones. In PSU, personally I prefer Bank Of Baroda.

    * Don't opt for ICICI under any circumstances.
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  • realacres, do u have a relative in Bank of Baroda??They dont even come to pick up your documents in 7 days. They give a time of pick up after 7 days..reason: all their executives are busy. Most horrible customer care.very bad experience. guyss check out with realacres may be he can help u with Bank of Baroda!!
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  • Originally Posted by 1001acres
    realacres, do u have a relative in Bank of Baroda??They dont even come to pick up your documents in 7 days. They give a time of pick up after 7 days..reason: all their executives are busy. Most horrible customer care.very bad experience. guyss check out with realacres may be he can help u with Bank of Baroda!!

    Hey, I said before, working with PSU can be hassling initially. Btw, you are right in other case, some of the most senior people in BoB are my neigbours & we have old relationship with that bank. There are also various types of accounts. If you do have a special account in their bank like 'Priority in Axis' or 'Premier in HSBC' everything changes.

    So, again it all depends between you & the bank.
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  • Interest Rate Fixed for entire Tenure of Loan

    Yes there are home loan where interest rate is fixed for entire tenure, but then while signing the agreement ensure that any such clause of rate hike under extra ordinary circumstances is slashed. At this juncture when such fixed rate loans are provided at 10+%, won't suggest to go for them. Rather you can go for SBI loan where I believe for initial 3-4 years they have fixed 9-9.5% ROI and after that as per market rate.
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  • Rates

    Man the days of fixed rates are over.

    Practically banks now do not offer an instrument like Fixed Rate for 15-20 yr.

    Even the fixed offered nowadays are fixed only for 3 - 5 yrs then, reset.

    I tried to get fixed rates quote from two-three banks, since one of my colleague got a deal from SBI. One of the manager explained me the fundas. The advertised fixed is fixed at high rates and that also for 3/5yr.
    The friend has got the deal since he has already paid 80 % of amt already in an approved project. So it all comes down to nego. as pointed by Real.

    Float are the best and can be changed to fixed later.
    PS: the spread rate betwn fixed and float is 3-4 %. which is huge.
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  • the spread rate betwn fixed and float is only 1 % in BoB & I also agree that BoB is the best bank for Home loan...
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  • Originally Posted by ash7979
    the spread rate betwn fixed and float is only 1 % in BoB & I also agree that BoB is the best bank for Home loan...

    I too agree BoB offers best home-loan terms like low rate, free personal/life insurance.Besides they're flexible as well.
    One just need to spend more time & be patient availing home-loan.
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  • Quotes

    Originally Posted by hitmady
    I too agree BoB offers best terms for home-loan like low rates, free personal/life insurance. Besides they are flexible as well.
    One just need to spend more time & be patient availing home-loan.



    hi Mady,
    Can u give the quotes/info for their rates and agents details

    Thanks
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  • You can visit their website www.bankofbaroda.com you can get the ROI info there,as a PSU bank they have total transparency in ROI...Fixed rate is just 1 % more than flexible one...as Mady said they offer free property & life insurance upto the property value (loan taken) & till 15 Aug they are even not charging any processing fees to sanction your loan...And their ROI is BEST in the market...

    They deal directly, so u have to go any of the BoB branch or their retail loan factory, its on ghole road...

    I myself x-ferred my loan to BoB baroda, so I can tell u they will take almost 2 months from start to handing over check to u...but this 2 months Pains is worth it !!!
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