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Home Loan FAQs Made Easy.

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Home Loan FAQs Made Easy.

Last updated: August 14 2016
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  • #51

    #51

    Re : Home Loan FAQs Made Easy.

    Originally posted by amit3011 View Post
    Hovv is the Punjab National Bank for Home loan? Is it good compared to other PSU banks?
    PNB is also good, has less ROIs in many cases as well but BoB is the best.
    Originally posted by gsa177 View Post
    Dont know why people say avoid private banks. My experience with ICICI has been good so far. SBI was also offering loans for the project I had booked in, so guessed that the builders paperwork must be Ok. And I wanted a faster turnaround so went with ICICI. Its not that something is hidden from you when you take a loan from private bank. So why this reluctance for private banks. Not trying to promote private banks here but want to understand the rationale.
    Hidden charges, pre-closure charges, loan transfer charges, penalties etc. are far higher. Also, in case of ROI hike, PSU are the ones who do the last & the least as well. But again it depends on your relatonship as well. If your co. has company a/c, then you are entitiled for lesser ROIs too! Hence, need to check all in totality but for a layman, PSUs are better as they offer more peace of mind & are not hand in glove with builders as well.
    Last edited by realacres; March 16 2010, 11:44 PM. Reason: new point
    If you are happy, you are successful.

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    • #52

      #52

      Re : Home Loan FAQs Made Easy.

      hi ..
      For a loan amount of 20 lac.. if I have two options :
      1. BoB - ROI 8.75 but no processing fees (saving of around 8k)
      2. Axis - RoI 8.5 fixed for 1 year .. will convert to floating later.

      Which will be better choice ?

      Comment

      • #53

        #53

        Re : Home Loan FAQs Made Easy.

        Originally posted by thatsnick001 View Post
        hi ..
        For a loan amount of 20 lac.. if I have two options :
        1. BoB - ROI 8.75 but no processing fees (saving of around 8k)
        2. Axis - RoI 8.5 fixed for 1 year .. will convert to floating later.

        Which will be better choice ?
        What is Axis banks' current PLR and what spread they are offering after one year?

        Comment

        • #54

          #54

          Re : Home Loan FAQs Made Easy.

          Originally posted by amjamirs2 View Post
          What is Axis banks' current PLR and what spread they are offering after one year?
          The current the Mortgage Reference Rate (MRR) of Axis Bank is 12.25.
          For Spread I will get the details by afternoon ..will update here.

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          • #55

            #55

            Re : Home Loan FAQs Made Easy.

            Originally posted by thatsnick001 View Post
            The current the Mortgage Reference Rate (MRR) of Axis Bank is 12.25.
            For Spread I will get the details by afternoon ..will update here.
            I would suggest not just compare the 8.75% of BoB with 1 year fixed 8.5% of Axis. Compare what is the rate Axis bank offering after 1 year with BoB's 8.75%

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            • #56

              #56

              Re : Home Loan FAQs Made Easy.

              Guys

              Majority of us think the PSU banks (SBI, BOB etc) are better for home loans and I agree. If we can survive the application formalities, I believe its good luck.

              Main Differentiators are
              - Processing Fee: Waived off in most PSUs
              - PRocessing Time: Short in most Private banks
              - Prepayment Penalty and ability to reduce EMI
              I need advice on this one.

              Banks like Kotak offer "no penalties for upto 25% (annually) of outstanding principle" on their loans. I believe this brings them close to the public sector witht he advantage of quick processing time.

              However, when one prepays, does the princicple reduce immediately and hence the EMI. Is there any difference how a private sector (like Kotak or HDFC) treats pre-payment versus public sector.

              Appreciate your views/suggestions and concerns.

              Thanks

              Comment

              • #57

                #57

                Re : Home Loan FAQs Made Easy.

                Guys

                Majority of us think the PSU banks (SBI, BOB etc) are better for home loans and I agree. If we can survive the application formalities, I believe its good luck.

                Main Differentiators are
                - Processing Fee: Waived off in most PSUs
                - PRocessing Time: Short in most Private banks
                - Prepayment Penalty and ability to reduce EMI
                I need advice on this one.

                Banks like Kotak offer "no penalties for upto 25% (annually) of outstanding principle" on their loans. I believe this brings them close to the public sector witht he advantage of quick processing time.

                However, when one prepays, does the princicple reduce immediately and hence the EMI. Is there any difference how a private sector (like Kotak or HDFC) treats pre-payment versus public sector.

                Appreciate your views/suggestions and concerns.

                Thanks

                Comment

                • #58

                  #58

                  Re : Home Loan FAQs Made Easy.

                  In most cases, the pre-payment charges in private banks are much higher than PSUs. Also, if RBI brings in new norms which is good for the market, the PSUs are the first to implement them. However, except for ICICI & HDFC, I don't think there is major issue with other private banks like Axis Bank. Just make sure to calculate 2 major things:-
                  1. Pre-payment charges,
                  2. The total amount you will pay at the end of the tenure.
                  If you are happy, you are successful.

                  Comment

                  • #59

                    #59

                    Re : Home Loan FAQs Made Easy.

                    Just enquired loan details of Axis bank.
                    Found it pretty much similar to BoB scheme.
                    Both have same rate of interest 8.75
                    Both have no prepayment charges
                    Both provide free Insurance
                    Both offered me nearly the same loan amount and tenure
                    Processing charges : Axis.25%, BoB:.4%
                    Infact Axis has benefit of faster processing being private.
                    Axis also offered no charges for loan transfer to another bank, the guy confidently saying that "Our Customers dont transfer loans elsewhere" :P
                    Seems like axis is a better choice...

                    Comment

                    • #60

                      #60

                      Re : Home Loan FAQs Made Easy.

                      axis vs BoB

                      Just enquired loan details of Axis bank.
                      Found it pretty much similar to BoB scheme.
                      Both have same rate of interest 8.75
                      Both have no prepayment charges
                      Both provide free Insurance
                      Both offered me nearly the same loan amount and tenure
                      Processing charges : Axis.25%, BoB:.4%
                      Infact Axis has benefit of faster processing being private.
                      Axis also offered no charges for loan transfer to another bank, the guy confidently saying that "Our Customers dont transfer loans elsewhere" :P
                      Seems like axis is a better choice...

                      Comment

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