Hi

I am a new user to the forum and this is my first post as well. I am also first time investor in property and looking for home loan (fist timer again).

I have given an advance of 10% for a property in Indrapuram, Gyan Khand1, Ghaziabad.

Now for that I need a loan of 30 Lakhs, which I can repay in another 5 years, with funds coming from ancestral property.

I was looking for Loan institutions and had options to choose from HDFC and LIC.I have chosen LIC and they have taken all the docs etc for verification.
I am co applying for same with my wife and in combo we earn decently.

I have been offered 10.15% and the option to convert to 10.65% fixed(for 5 yrs) after loan is sanctioned. However this might vary because of recent upscale by RBI last week.

The agent/financial planner from LIC suggests us to take the loan for tenure of 20 Yrs, whereas I can afford to pay the extra amount and want to go for 15 yrs tenure.

My query starts here.

The agent said you should start repaying extra savings after 6 months of inception and was trying to convince me for 20 years period.
Does anybody have logical thoughts or reasoning to this.
Should I go for 20 yrs as agent is insisting or 15 years, knowing that I will repay in another 3-5 yrs period.

Look forward to hear on this thread.

Thanks and Regards,
D
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  • If you are open to re-consider then first withdraw your application and look for some other option. LIC should not be even last choice.

    Originally Posted by greymatter
    Hi

    I am a new user to the forum and this is my first post as well. I am also first time investor in property and looking for home loan (fist timer again).

    I have given an advance of 10% for a property in Indrapuram, Gyan Khand1, Ghaziabad.

    Now for that I need a loan of 30 Lakhs, which I can repay in another 5 years, with funds coming from ancestral property.

    I was looking for Loan institutions and had options to choose from HDFC and LIC.I have chosen LIC and they have taken all the docs etc for verification.
    I am co applying for same with my wife and in combo we earn decently.

    I have been offered 10.15% and the option to convert to 10.65% fixed(for 5 yrs) after loan is sanctioned. However this might vary because of recent upscale by RBI last week.

    The agent/financial planner from LIC suggests us to take the loan for tenure of 20 Yrs, whereas I can afford to pay the extra amount and want to go for 15 yrs tenure.

    My query starts here.

    The agent said you should start repaying extra savings after 6 months of inception and was trying to convince me for 20 years period.
    Does anybody have logical thoughts or reasoning to this.
    Should I go for 20 yrs as agent is insisting or 15 years, knowing that I will repay in another 3-5 yrs period.

    Look forward to hear on this thread.

    Thanks and Regards,
    D
    CommentQuote
  • Thanks but that's pretty stark statement... couple of my colleague have their loans going from LIC they didn't confess any probs, however 1 of the guy moved from hdfc..

    I only had option of lic and hdfc in ghaziabad so preferred lic. u can elaborate your bit and also guide me on the original query I had.

    thnx n rgds
    d

    Originally Posted by nkg_8
    If you are open to re-consider then first withdraw your application and look for some other option. LIC should not be even last choice.
    CommentQuote
  • Scheme/Term/Intrest rate are different issue but the problem which I faced was no processing of loan even after depositing processing fees. They work on "Bhagwan Bharose" style, If you are applying their then be ready to wait for six months and then they will say they need your latest salary slips and latest bank statements once again. Totally useless fellows, even there is no use of escalating your problem to any senior.

    Some people could be lucky, but not all.
    CommentQuote
  • Hi Greymatter

    I was googling the same which you posted one year ago and believe me, your 1 years old query is dipto same as my todays question. I have a choice of HDFC or LIC, Please share your exp here and guide me, which is better 15 or 20 Yrs ... also did u face any problem in LOAN processing procedure..

    Also, there are 3 charges, I am not sure why LIC wants these 3 extra charges

    01) Cheque for upfront processing.Rs.5618.(Not refundable in any case)

    02) *Proccesing Fee. Rs.0.5% of loan amount+ S.tax - for corporate employee
    03) Rs.2000 Cash for mortgage.-Payble at the time of delivery of the sanction letter

    I am not sure why there are 3 differnt type of charges...please share your exp...
    CommentQuote