What are the charges other than processing and administrative fees for NRI home loans?

I heard from sales agent that NRIs has to pay a EM (Equity Management) charges, which is 0.5% of the loan amount and has to take insurance (which is only for natural calamities)

Is that true? Can any one please help?
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  • I think my total processing charges came to 50,000-60,000 rupees
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  • mine was a fixed 5642 with Axis Bank
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  • I saw this charges in axis bank website. That alone comes around 35000. Is that not necessary. Were you able to get without paying that.
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  • Originally Posted by Nagendran
    I saw this charges in axis bank website. That alone comes around 35000. Is that not necessary. Were you able to get without paying that.


    Everything in Home Loan is NEGOTIABLE, including interest rate too ..)
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  • Originally Posted by Nagendran
    What are the charges other than processing and administrative fees for NRI home loans?

    I heard from sales agent that NRIs has to pay a EM (Equity Management) charges, which is 0.5% of the loan amount and has to take insurance (which is only for natural calamities)

    Is that true? Can any one please help?



    Hi,

    0.5% of the loan amount and other charges if any, are just on papers, in actual it varies between Rs. 5000/- to 12000/- only for a loan amount upto 75 Lakhs with most of the banks.

    Even if agent/bank ask for 0.50% processing charges, just tell them that you will only proceed further if they provide you 'discount' in processing fee that is 5000 to 12000/- as above.

    In my case (HDFC Ltd), initially overseas agent was asking for 0.50% of loan amount but later he come up with less amount (about 11K) stating that there was some scheme going on (always I think!!!!).
    :bab (48):
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  • Originally Posted by Designer


    Even if agent/bank ask for 0.50% processing charges, just tell them that you will only proceed further if they provide you 'discount' in processing fee that is 5000 to 12000/- as above.
    :bab (48):


    Is it worth the effort to save on 5,000-10,000 rupees when you're making an investment of 40-50 lakhs? Why give the Bank the moral high ground as if they will be doing you a big favor? They will use this moral high ground to create pressure on you later on documentation or make investments in their bank mutual funds or simply give them some "bakshis"!
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  • Originally Posted by stinaikar
    Is it worth the effort to save on 5,000-10,000 rupees when you're making an investment of 40-50 lakhs? Why give the Bank the moral high ground as if they will be doing you a big favor? They will use this moral high ground to create pressure on you later on documentation or make investments in their bank mutual funds or simply give them some "bakshis"!


    Hi,

    Very much agree that 5000-10000 is peanuts as compared toloan amount......but it is normal and a part of their marketing strategy, they are not going to provide us any favour in rate of interest etc. even if we accept each and everything without any question.

    If we start loosing at intial stages, chances are more that we are going to loose much more at later stages as well.

    :bab (48):
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  • Originally Posted by stinaikar
    Is it worth the effort to save on 5,000-10,000 rupees when you're making an investment of 40-50 lakhs? Why give the Bank the moral high ground as if they will be doing you a big favor? They will use this moral high ground to create pressure on you later on documentation or make investments in their bank mutual funds or simply give them some "bakshis"!


    It's your own money and you have all the rights to go for best 'Value for Money' for you.

    No one is doing favor to you, they are doing just business. I normally would start process with few banks simultaneously and then would decide which one to continue with. And all the time, I will directly or indirectly inform the banks that I am working with multiple options. If you want my business then pay attention to me or else I have options.

    It all depends, who drives the show. If you let the bank clerk drive you, you will get mad. I don't mind paying extra or go for a slightly higher rate but will try for the best value for my money and time.

    In good market when all the banks are behind you to give loan, it is not tough to get the best service and best price ...

    In dull market, masjid ko mulle ka paas jana padega .. or else don't buy!!

    Keep in mind that, everything in home loan is NEGOTIABLE, based on who is in a commanding position.
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  • I pretty much agree with gharondabhai.. In my case I took an NRI home loan from SBI and had to pay just INR 6500/-

    This does not include a few extra expenses that incurred in international courier and phone calls which came to around INR 1500/-
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