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Discuss Home loans

Discussion in 'Housing' started by Ooviya, Nov 10, 2009.

  1. ramyav_cse

    ramyav_cse Gold IL'ite

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    Hi All,

    I would like to have expert opinion on what to choose when it comes to bank loan.
    We have finalized on LIC Housing finance and they have 2 types of loans that they are offering us.
    1. Floating -9.25% current rate. Total Tenure: 15 yrs
    2. Fixed time fixed interest - 10.15% for 5 yrs and floating for the rest of the tenure(10 yrs)

    We are not able to decide on which one is better. We expect to pre close 75% of the loan amount in 5 yrs and possibly restructure the loan(loan tenure remaining the same) when we do that. Which of the above mentioned is better given our situation.
     
    Last edited: Apr 6, 2011
  2. Shanvy

    Shanvy IL Hall of Fame

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    Ramya,

    I would go with 10.15% rather than the floating. the floating could go upto 14 is what i get feelers.

    And the advantage you have is you want to prepay. so the number of emi's will definitely reduce. with lic, you can start repayment from the 6 month of disbursement as long as it is from a nre account.

    I have a lic fixed 5 years and floating later. but it was at 8.9 last may. so there is a jump of almost 2% in one year.so you can make a conclusion.
     
  3. senthilkumarav

    senthilkumarav New IL'ite

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    Dear Ilites,
    Finding many useful information on the subject here.

    I am in the process of applying housing loan for an apartment.
    Now the interest rates are in double digits I know.

    But I believe in SBI they have the following rates and it is attractive..
    first year 8.75, 2nd & 3rd year 9.5
    I came to know from SBI official site that this teaser loan that they have extended further.

    :: STATE BANK OF INDIA :: Safe Banking With SBI ::

    I dont have any idea and need to start researching on the options I have now for 32L (80% of the apartment value and I am planning to repay in less than 5 years)

    Can anyone throw some detail on this and advise the pros and cons of dealing with SBI homeloans or any better options with any other Bank that can offer?

    Thanks in advance.
    Shanthi akka, Expecting your ecpert advise.

    With Love, Anitha
     
  4. Shanvy

    Shanvy IL Hall of Fame

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    SBi teaser loans are still under discussion phase.

    this was the tweaked offer that i know of last. and accorind to sbi chief they are still discussing. the reason for the removal of the teaser loans was the fear of repayment and also people misusing it.

    9.5% for loans up Rs 30 lakh and 9.75% for loans up to Rs 75 lakh.

    A special concession for loans sanctioned up to March 31, thus SBI would charge 8.5% in the first year and 9.25% for the second and third year on floating rate basis.

    On loans above Rs 30 lakh, SBI would give a concession of 1% in first year and 0.25% in the second and third years.

    For loans up to Rs 75 lakh, SBI is giving a concession of 1.25% in the first year and 0.50% in second and third years

    I will go with sbi home loans, if i am a resident, and the legal documents that i have will suffice sbi legal panel.

    I still like the transparency offered by sbi home loans.

    since you believe that you can prepay in the next 5 years, either you can go for a fixed tenure of 5 years, or take floating rates and prepay with the prepayment penalty.(it is nris who pay from the nre sources who do not have a prepayment penalty with most banks.)

    if you can manage the 2 lacs. you can go in for the 30lacs band which is still having a discount in interest rates compared to what is offered.

    also the person whom you talk also holds the key.

    you can try idbi, lic too..most of these banks are offering the same/

    all the best to your buying your new home Anitha. which project if it is not interference
     
  5. senthilkumarav

    senthilkumarav New IL'ite

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    Shanvy, Thanks for quick response! Vishranthi, Sunderkhand..
     
    Last edited by a moderator: Apr 12, 2011
  6. Shanvy

    Shanvy IL Hall of Fame

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  7. manosaro

    manosaro New IL'ite

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    Dear Shanvy,

    we booked a flat in vruksha of mettupakkam foundations and planned to apply loan for 30L through Bank of India.First 20% we r going to pay and when the bank starts to pay, EMI (only interest)starts and not the base amount.As of my knowledge paying of principle amount starts only after completion of the project. Is there any way that we can start paying the amount before project completion certificate.

    Thanks
    Mano
     
  8. Shanvy

    Shanvy IL Hall of Fame

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    Manasaro,

    Congrats on your booking. boi states clearly that the repayment starts only after the 18th month or the completion of the project.

    and i think this is one of the banks that is giving upto 300lacs(?).

    I think you can start paying emi and not pre-emi (which is the interest part alone on the loan disbursed till that date). you can talk to the branch and ask. when i was dealing with hdfc, the officer there gave me the option of increasing my emi to a certain amount say 5k towards the principal. i am not sure if this is allowed. but every month after the prepayments restriction time starts, you can pay any amount towards the principal..at present banks will not say no to prepayment is what i have been told.
    Bank of India
    for lic, nri it is from the 6th month of disbursement.
     
  9. Shanvy

    Shanvy IL Hall of Fame

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    AS i mentioned in my earlier post, sbi teaser loans have been closed and the revised interest rates for most banks have been released with effect from 15.04.2011. do check with your bank.

    the interest rate for upto 20/25 lacs now stands 9.5 to 9.75 % and goes upto 11%
     
  10. Geetha83

    Geetha83 New IL'ite

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    Housing Bank Loans

    Hi IL's,
    I know this is silly. But since lots of people are in the process of purchasing the flats, I would like to know which is the best bank to get the housing loan.There are lot of options,but still a marginal difference in rates might make a difference,right? . Also I heard about DHFL( Dewan Housing Finance Limited) who are offering/specalised in NRI loans . Have any one had any experience with them . Please share your thoughts so that I choose the right one.

    Thanks
    Geetha
     

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