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Suggestions for Home loan

Last updated: June 1 2012
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  • Suggestions for Home loan

    Dear members,

    After comparing home loan rates from all leading banks, I found that LIC housing finance is giving loan at best rates For loan above 30 lacs, their floating rate is 10.4 and fixed rate is 10.7%. Almost all other banks are offering 10.75 % for floating rates.

    After doing a bit of research, I found that people are not very happy with LICHF loan approval processes and customer care. Many people advised me to pay a bit extra to private banks for peace of mind.

    I invite suggestions from experienced member here for going ahead with LIC. Has LICHF really changed recently as claimed by their agents?

    Also, keeping current economic scenario into perspective which one is recommended - floating or fixed?????

    Thanks
  • #2

    #2

    Re : Suggestions for Home loan

    Seeking urgent advice

    Gurus,

    I believe many people on this forum can offer best reviews on the home loan and interest rate scenario based on economic understanding.
    Hence reopening the thread and requesting you all again to provide your kind guidance. I need to decide on home loan urgently where the bank and fixed/floating needs to be frozen.

    Please help...

    Thanks

    Comment

    • #3

      #3

      Re : Suggestions for Home loan

      as per the current scenario better select floating rates because interest rates are at peak right now.
      as far as PSUs vs private banks are concerned PSUs are cheaper in long run and private banks are costlier even 0.25% difference for 10 lakhs loan makes huge difference over the period of 20 years.
      i'll suggest apply loan application with PSUs like LIC SBI PNB etc and in private i'll suggest you to start process with HDFC and avoid ICICI (they are the worst banker in india)

      Comment

      • #4

        #4

        Re : Suggestions for Home loan

        Originally posted by manishag View Post
        as per the current scenario better select floating rates because interest rates are at peak right now.
        as far as PSUs vs private banks are concerned PSUs are cheaper in long run and private banks are costlier even 0.25% difference for 10 lakhs loan makes huge difference over the period of 20 years.
        i'll suggest apply loan application with PSUs like LIC SBI PNB etc and in private i'll suggest you to start process with HDFC and avoid ICICI (they are the worst banker in india)
        Thanks Manishag for your prompt reply!!
        But, the economy doesn't look in good shape and with increasing inflation, I foresee RBI pulling out more money from the market, which can increase the lending rates...

        How about 10.7 % fixed rate for 3 years from LIC??
        I was told by LIC agent that even it is possible to switch to floating in case rates come down substantially..Is it really possible...do bank allow before 3 yrs???

        Thanks..

        Comment

        • #5

          #5

          Re : Suggestions for Home loan

          Originally posted by IndianPundit View Post
          Thanks Manishag for your prompt reply!!
          But, the economy doesn't look in good shape and with increasing inflation, I foresee RBI pulling out more money from the market, which can increase the lending rates...

          How about 10.7 % fixed rate for 3 years from LIC??
          I was told by LIC agent that even it is possible to switch to floating in case rates come down substantially..Is it really possible...do bank allow before 3 yrs???

          Thanks..
          yes you can switch between the fix and floating rates after paying nominal charges(or may be free depending upon bank)
          in nay case fix rate is also not completely fix banks resets it depending upon some criteria like difference between floating and fix goes more then 3% banks resets it. so you need to check it with the Bank.
          also rules do changes like prepayment charges has been removed.
          it's you decision that weather you go for 3 years fix and then floating.
          i took loan during teaser rates where interest was fix for 1st 3 years then it got reset to floating rate.

          Comment

          • #6

            #6

            Re : Suggestions for Home loan

            well you should always go for a floating rate.. there is no funda like fixed rate.. trust me.. the bank offers a fixed rate but there are many conditions attached to it..which is harmful in the long run.. and as someone said very correctly Rates are already on all time high and there is a very very bleak possibility of rates going up further to an extent of surpassing the fixed rate...

            Go for any bank but avoid NBFC's like LICHousing finance.. hope it helps

            Comment

            • #7

              #7

              Re : Suggestions for Home loan

              Originally posted by IndianPundit View Post
              Dear members,

              After comparing home loan rates from all leading banks, I found that LIC housing finance is giving loan at best rates For loan above 30 lacs, their floating rate is 10.4 and fixed rate is 10.7%. Almost all other banks are offering 10.75 % for floating rates.

              After doing a bit of research, I found that people are not very happy with LICHF loan approval processes and customer care. Many people advised me to pay a bit extra to private banks for peace of mind.

              I invite suggestions from experienced member here for going ahead with LIC. Has LICHF really changed recently as claimed by their agents?

              Also, keeping current economic scenario into perspective which one is recommended - floating or fixed?????

              Thanks

              LIC 10.4% is only for first 3 month. They are making fool customer.
              Just ask direct LIC person.

              Don’t go for fixed rate when rate are on higher side & likely to go down.
              When rates are on lower side, then choose fix.

              My priority list :

              1) HDFC
              2) SBI
              3) PNB
              4) IDBI

              All are offering on 10.5% except PNB. Pls check.
              I have both home loan with HDFC & choose after lot of comparison.
              In case of any doubt, pls feel free to revert.

              Comment

              • #8

                #8

                Re : Suggestions for Home loan

                Originally posted by varshneyiet View Post
                LIC 10.4% is only for first 3 month. They are making fool customer.
                Just ask direct LIC person.

                Don’t go for fixed rate when rate are on higher side & likely to go down.
                When rates are on lower side, then choose fix.

                My priority list :

                1) HDFC
                2) SBI
                3) PNB
                4) IDBI

                All are offering on 10.5% except PNB. Pls check.
                I have both home loan with HDFC & choose after lot of comparison.
                In case of any doubt, pls feel free to revert.
                Yes, you are right that 10.4 % from LIC is for only 3 months; I got to know this from LIC manager in the bank. He said that it will be 10.7 after 3 months
                But HDFC is also offering 10.75 floating; I checked directly with the bank.
                @Srivastav : what can be the problems with LICHFL???

                Thanks

                Comment

                • #9

                  #9

                  Re : Suggestions for Home loan

                  Originally posted by IndianPundit View Post
                  Yes, you are right that 10.4 % from LIC is for only 3 months; I got to know this from LIC manager in the bank. He said that it will be 10.7 after 3 months
                  But HDFC is also offering 10.75 floating; I checked directly with the bank.
                  @Srivastav : what can be the problems with LICHFL???

                  Thanks
                  Take loan of 29 lac. You will get 10.5

                  Comment

                  • #10

                    #10

                    Re : Suggestions for Home loan

                    Originally posted by varshneyiet View Post
                    Take loan of 29 lac. You will get 10.5
                    Thanks!!
                    But I need minimum of 40 lacs..

                    Comment

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