Hi...depends on your amount...hdfc is a hfc and not a bank.. Hence governed by nhb..they do not have base rate but plr to benchmark your variable rate.. Plr is totally discretionary and if hfc wants to play around could easily screw existing customers and offer lower rates to new customers...axis as u know is governed by RBI and uses base rate... Which is far more fair and transparent..having said that hdfc is one of the better hfc .. In my opinion try lic housing finance specially if they have a branch in your city...got the best offer from firstname.lastname@example.org% from them... And being sarkari do not expect a rip off from them
i) you save just .10% by going with LIC but this is only for loans upto Rs.30 lakhs. Anything beyond that and the rate of interest becomes on par with leading private lenders like HDFC etc.
ii) Compared to private banks where you have to pay between s.5515 to Rs.11030 as processing fee, in LIC and SBI you could end up paying close to Rs.20,000/- for getting your loan processed and also, this money has to be paid individually to lawyers, evaluators, bank personnel etc and not at one shot like in private banks.
iii) Processing Time : Where HDFC and Axis Bank can do process the loan file in 15 to 20 working days time, SBI would easily take between 30 to 45 days for the same file. LIC is slightly better but they too take on an average of 30 to 40 days.
And many more reasons that i have explained in my previous post to which link is given above.
Hence in the end, if you are going for loans of less than Rs.30 lakhs, you may think of LIC to save that 0.1% but if you want best service and going for loan of more than 30 lakhs, you should preferrably look at HDFC or Axis Bank as they offer rates on par with LIC but the service is way ahead and you save lot of time and effort.
And since interest rates keep changing often, there maybe times when LIC rates may be on par with private banks in which case, private banks should become your default choice.
I was checking with HDFC Ltd for NRI home loans. they seemed to be ok. Also they have a good scheme called tranche emi option which is good.
What is the Tranche Based EMI repayment option?
To help customers save pre-EMI interest, we have introduced a special facility of Tranche Based EMI.
For under-construction properties, customers can choose the instalments they wish to pay till the time the property is ready for possession. Anything paid over and above the interest by the customer goes towards principal repayment.
However does Axis bank offer similar concept of Tranche Based EMI, it helps to save on interest amount in big way.
Originally Posted by roshan5
Nagendran, which bank did you finally decide to go with ? I am in the same boat.
Go for Axis Bank as they will give you on Base Rate plus margin. And, you can bargain on margin they give you which will be fixed throughout the tenure of the loan period. Base rate is fixed and bank change it periodically depending on RBI CRR, Base rate movement.
Axis Bank is more transparent as compare to HDFC or any other private bank or NBFC's.
Originally Posted by PGandhi
Hi! whats the outcome of this forum ? i need to apply for loan this month and confused on choosing HDFC or Axis. I think both provide same features and similar rates & charges.