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Discuss Home loans

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

  1. thenmozhiboo

    thenmozhiboo New IL'ite

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    thanks shanvy, as everyone i am worried about two things-
    1. what if the rate decreases further - safe bet here is 10% 2 yrs
    2. what will be the floating rate that LIC will offer, they say its rake/card rate? will it be like the other banks - confused here if LIC is the better choice. I have axis and lic as choices provided from builder.
    NOTE: the 10% plan states, the floating interest will be 25 pts less than the card rate after 2 years. How about your plan? After 3 years is it the card rate for you?
     
  2. k11

    k11 Silver IL'ite

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    If you are on a floating rate loan then if the rate goes down, your rate also goes down.

    Bank always keep a reference rate or card rate. SBI call it SBAR.
    This rate moves up or down depending on Reserve Bank's rate. All the loans are based on this rate.

    Stick to public banks (PSU), LIC, SBI, Indian Bank, PNB, BOB, etc. They have lowest processing fee.

    LIC I think gives 0.25% off for women. But check all the options.
    Go to the public bank that you have a good relationship with and can process it faster.

    For private ones, HDFC is bit better. Icici is not good. very high processing fee.
     
  3. thenmozhiboo

    thenmozhiboo New IL'ite

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    thx k11, now tat i have only option - LIC. I am confused in which one can i go?

    1. 2 yrs - 10% fixed and later floating
    2. 10 yrs - 10.95% fixed and later floating

    I am planning for 20 yrs and not going to do many prepayments for this loan. It will run for quiet some time. With this please advice,
     
  4. hrastro

    hrastro Platinum IL'ite

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    LICHF has the special scheme for women 10% for first two years and then (floating rate - .25%)

    The only thing they need from women is their id proof, the woman should be first applicant in loan and also first applicant in the sale deed of the property, the income proofs etc will be collected from the husband as the co-applicant.

    I think this is a good option for you to reduce the interest payments and the total cost of the loan

    If you dont get SBI loan, go for the women's scheme of LICHF. SBI has lesser rates and lesser EMIs for the same rate, so your loan cost will reduce drastically :)
     
  5. namrathamorab

    namrathamorab Gold IL'ite

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    Hi.. Got to read a lot of the Home loan stuff here.. out of what I know I have some thigs in here
    1.The Fixed Loan does not stay put at the same rate it is also susceptible to revision.
    2.As far as the Interest rates are concerned - The simple math for a NBFC lending is Prime lending rate minus the discount, please check the discount availability and for the banks its base rate plus a percentage earning - the bank rates are prone to change faster than that of the non banking.
    Do check with HDFC also. (Plz note that the HDFC Ltd is a separate entity from the HDFC Bank)
     
  6. thenmozhiboo

    thenmozhiboo New IL'ite

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    yes hrastro, i am planning to opt that women's plan only. My builder gave me two options only - axis and lic. So i went for LIC, and now confused with 2 yrs or 10 yrs fixed. 2yr fixed as u told is special plan for women.
     
  7. k11

    k11 Silver IL'ite

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    Just go for the 2-yr fixed.
    Rates can come down in future so going for 10yr fixed does not make lot of sense.

    When I took the home loan three years ago, I got into the SBI teaser rate scheme. They closed it now, I got in last week of the scheme.
    My loan was 1st year 1% off, 2 and 3rd 0.75% off and final year 0.5% off.
    Mine was a 10 year loan. I saved close to bit less than 3% becasue of this scheme.
    RBI made a big deal and forced SBI and other banks to shut this scheme down. I felt these offers do make sense for lot of responsible payers.

    Also these are good deal for younger people. Incomes do rise and in first 2-3 years, many will be appreciate the savings.
     
  8. Nanimom

    Nanimom Gold IL'ite

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    hi, I am also in the process of getting home loan...
    need some clarifications...

    our builder is arranging loan through Axis bank.. while talking they gave us two options as usual like floating and fixed.. I think in fixed also after few years we have to pay floating rate na ..

    they told me that its a special offer where we are suppose to pay only 11.75% for full tenure... even if we go for 20years tenure, it is only 11.75%

    Im really confused and not able to believe thinking there may be some hidden things..

    I went through the prwvious posts, read pre-closure and pre-payment is made with no penality.. but these bank people told that there is another special offer where you get pre-closure and pre-payment completely free so that I can go for either fixed or 0%penality..

    pls clarify me.. Im completely a new buddy with loans, constructions.. pls guide me
     
  9. Shanvy

    Shanvy IL Hall of Fame

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    floating rates in homeloans have increased in most banks. where it was a 10.75 it is now 11.75%:drowning
     
  10. DeepaliMohite

    DeepaliMohite Senior IL'ite

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    When you choose a lender, remember that you will need to go back to them for service requests – address change, change in loan tenure, part pre-payment of the loan etc. If your lender is unreachable from the beginning, know that these routine requests would also be a challenge to have executed. Therefore, given the long term interaction you will have with the lender over your loan tenure, you want to be sure that you have obtained the best possible home loans interest rate and terms. To know more on choosing the best lenders visit Importance of choosing the right lender
     
    coolmoon likes this.

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