[jkrishnakj]

The DD isn’t given by most banks. It’s the bankers cheque as m8002 says.

I was in a similar quandary where my potential buyer had a sale agreement with me with just a 10K advance and 90% funding from HDFC.

I somehow had a feeling that something may go wrong at the e registrar office, but then, he had a DD for the balance of his 10% and HDFC representative had issued a Bankers cheque that was handed over to me at the registration office, details duly captured in the registration documents.

Went easy and cool and the first thing I did was to visit my branch to deposit that cheque with the moneys showing up in the account almost immediately.

[ghodlur]

Anybody here applied recently for HDFC Home loan? I have finalized a flat in Pune and will be opting for home loan from HDFC (have a corporate salary account + credit card). Its a resale flat and intend to register it in my wife's name (first owner) and mine, so will need to have a home loan in both of us names. Does HDFC give any discount on interest rates for female applicants?

Any other bank/HFC offering competitive interest rates than HDFC?

[Ananthang]

Originally Posted by ghodlur

Anybody here applied recently for HDFC Home loan? I have finalized a flat in Pune and will be opting for home loan from HDFC (have a corporate salary account + credit card). Its a resale flat and intend to register it in my wife's name (first owner) and mine, so will need to have a home loan in both of us names. Does HDFC give any discount on interest rates for female applicants?

Any other bank/HFC offering competitive interest rates than HDFC?

Did you check PMAY, there is a some discount there for women buyers. Don’t worry much about interest rate, based on RBI they keep revising it every quarter or so. You can always play like INR 2500 and they can bring that interest down to base rates. Mine was at 8%, so I paid 2500 and got it down to 7.25 and then when RBI reduced post Covid, it further dropped down to 6.9% now.

[longhorn]

Originally Posted by ghodlur

Any other bank/HFC offering competitive interest rates than HDFC?

I am not really sure of the current state of affairs, but from past experience I would bet on SBI for this. From what I understand, their rates do move based on the changes done by RBI on PLR. This was not so, at least in my experience with HDFC. While they are very prompt in hiking the rates, it never moved down in tandem with the PLR. Also remember that HDFC is a HFC, not a bank, so they are not legally bound by the PLR specified by RBI from time to time.

[hothatchaway]

My BIL paid off his home loan for an appartment in noida two years back but was unable to get the hypothecated documents back from LIC, who gave the loan as he works abroad and couldn't travel to India due to COVID.
He went to the disbursing branch this Monday but they are giving him the run around on some pretext or the other. What is the best channel of grievance redressal for lic in particular and matters pertaining to home loan repayments where the customer has paid off the loan without any defaults but the lending institution is acting funny?

I can only put this down to the legendary lic lethargy as all repayments were on time and there is no outstanding.

It would be great if someone with experience in this matter could advise

[Spinnerr]

Originally Posted by longhorn

.... This was not so, at least in my experience with HDFC. While they are very prompt in hiking the rates, it never moved down in tandem with the PLR. ....

+1 to that.

From my brother's experience with HDFC & CanBank Housing Finance;
- Interest rate hikes are prompt and intimated via SMS, emails.
- Whenever rates go down, customer has to bear a "Recalculation fee" after which the revised reduced rates apply. If I remember this right, he paid about Rs. 4000 as the fee, each time.

[sunilch]

Originally Posted by hothatchaway

My BIL paid off his home loan for an appartment in noida two years back but was unable to get the hypothecated documents back from LIC, who gave the loan as he works abroad and couldn't travel to India due to COVID.
He went to the disbursing branch this Monday but they are giving him the run around on some pretext or the other. What is the best channel of grievance redressal for lic in particular and matters pertaining to home loan repayments where the customer has paid off the loan without any defaults but the lending institution is acting funny?

I can only put this down to the legendary lic lethargy as all repayments were on time and there is no outstanding.

It would be great if someone with experience in this matter could advise

Raise a complaint with the Nodal officer at LICHF first and give them a written timeline (say 2-4 weeks to come back). Write in it that you will go to RBI Ombudsman if you don't get a response in this time period. The very mention of Ombudsman will be enough to get the work done.

[sunilch]

Originally Posted by Spinnerr

+1 to that.

From my brother's experience with HDFC & CanBank Housing Finance;
- Interest rate hikes are prompt and intimated via SMS, emails.
- Whenever rates go down, customer has to bear a "Recalculation fee" after which the revised reduced rates apply. If I remember this right, he paid about Rs. 4000 as the fee, each time.

All banks or HFCs have a reset cycle which can be quarterly or annual. So they reset as per the cycle only. However, we notice the increment and miss the cycle dates when rates go up. Human nature.

The charges that they ask are for cycle reset in adhoc manner. So in between the cycle that you are in. Charges is their way of making some money and at time this is also waived off, if you ask the RM.

[RavyaLe]

My Home Loan approval experience with Bank of Baroda, Girinagar - Bangalore.

My Current Residing City : Hyderabad
Property is @ : Mysore road, Near RV Engg. College, Bangalore.
Property Status : RERA Approved, Under Construction Property.
Expected to Hand over : June 2024.
Loan Applied : 55 L
My Cibil Score : ~800
My Current Age : 47
Previous Home Loan : Nil
Builder approved by : SBI, BOB, ICICI, HDFC banks
Home loan Applied : Bank of Baroda (ROI 6.5% to 6.75% based on approval and cibil Score)
- Other Banks were between 6.75 to 7.5 %.
- One of my friend who worked with HDFC suggested for SBI Maxgain home loan.
- I enquired and read reviews that BOB provides the lowest home loan interest rates.
- For under construction properties. BOB home loan linked SB account has advantages compared to SBI Maxgain.
Co-applicant : My wife
Builder referred to : Mr. Umesh, SKS Enterprises, Giri Nagar, Bangalore.
Home Loan Enquired on : 27th Nov. 2021
Loan ROI and other charges quoted was :
- 6.5% (With Home loan insurance),
- 6.55% (Without insurance),
- No charges for down payments,
- No restrictions for number of down (Bullet) payments.
- Home lone linked to Separate Savings account, wherein we can park the idle amount (Similar to SBI Maxgain,).
Home loan Interest will be difference between Disbursed amount & SB deposited amount.
- SB Deposited amount will not generate annual interest.
- We can withdraw the amount in SB account as per our requirement even for under construction property (This provision is not provided by SBI Max gain account).
- BOB also provides Suvidha account for interior and registration expenses @ 7.5% interest.
- Suvidha Account is optional.
Documents Requested from Umesh for Loan Processing :
1) PAN & Aadhaar copy
2) Current residence address proof
3) One passport size photo
4) Three Months Payslip
5) Six Months bank statement
6) Two years form- 16
7) HR letter confirming employment details
8) latest Form-26AS or PF statement for one year
9) Sale agreement copy

Charges:-

1) NIL Processing fee
2) Free accidental insurance for main applicant
3) Legal & Valuation charges: 10,030/-.(8500+18% GST)
4) MOTD : 0.3% on the loan amount at the time of registration
5) Property insurance at least for 5 years : Approximately 10,000/- to 12,000/-.
6) Documentation charges: 1,200 to 1,400/-.

- Legal charges I negotiated to 7500 /- as the property legal evaluation completed by major banks.
- BOB already approved loans for the same property to other customers.
- 7500 /- was paid thro’ Cheques to BOB Girinagar Branch
- No Documentation charges paid to them.
- I didn’t opt for insurance as it was onetime payment
- BOB team didn’t force us for insurance
- I already had term insurance.
- I planned to opt for another term insurance covering my Home loan (in next Financial Year).

21st December, 2021 - Forwarded the required scanned copies Mr. Umesh along with signed home loan application form.

23rd December, 2021- Shipped the hardcopies for loan processing

27th December, 2021 - Builder sent the current demand letter as per the construction status to BOB

6th Jan, 2022- Received call from BOB for loan documentation verification and online formalities at their website.

11th Jan, 2022 - Loan was approved.

14th Jan, 2022
- BOB Shipped the hard copies of my loan application to my nearest BOB branch @ Hyderabad
- Instructed us to Carry 2 photo each, original PAN card and Aadhar Card
- 6 cheques for security
- Property Original documents like sale agreement, cash paid / token advance receipts and hand over to the branch after signing formalities.

21st Jan, 2022
- We both handed over all the original of the property records as instructed
- Submitted the photographs
- Signed almost all the pages of the application, It was almost 50 + signatures.
- The Hyderabad BOB branch staff was cooperative, entire formality completed in 30 min
- Informed Mr. Umesh that, we completed the signing formality.

27th Jan, 2022 - Received call from BOB- Girinagar Branch, Bangalore that Loan was disbursed to the builder as per the current demand.

4th Feb, 2022
- First EMI deducted from my account.
- Meanwhile I requested the BOB Girinagar Staff by email to Change the EMI deduction to 10th of each month.
- My request was honored and approved by BOB Team.

To Conclude:
- The entire process was done online
- I never took leave from my work to process my home loan (Mine is 6 days week job)
- I have not visited the Loan processing BOB – Girinagar Branch
- I have not met the SKS enterprises Staff Mr. Umesh and BOB Girinagar Branch Manager (Mr. Kundan) or other Staff (Mrs. Mehar) in the entire Loan processing till date.
- Only my personal visit was to BOB Hyderabad branch for signing the documents – it was only 30 min. (For this I took 2 hours Permission from my office to visit the Bank)
- Paid only processing charges Rs.7500 by Cheque to BOB, no other charges are deducted to me.
- I have not paid bribe or no one requested for the same.
- If we take loan protecting insurance 0.05% interest will be reduced.
- BOB staff never insisted to take Home loan insurance for loan processing.
- They also informed that, if I am willing to take I can take with any insurance provider. Not compulsory with BOB assisted insurance providers.
- For me the entire processing was completed in about 60 days.
- There was no delay from Bank or the supported agency, they assured that if all the documents are submitted they will disburse the loan in 2 weeks.
- Delay in loan processing was from my side only, I delayed document submission.
- I wanted to push the EMI deduction as much as possible by requesting builder that, “loan is under processing”.
- Even though I reside @ Hyderabad, Home loan processing @ Bangalore was completed without visiting branche @ Bangalore. This gave a big relief and savings for me during the pandemic days.

Disclaimer : I am not associated with BOB or SKS enterprises Girinagar Bangalore.

Thanks you for your patience, any info / clarification required please feel free to contact me.

[pandey.jai]

What is the role of SKS Enterprises in this deal?

[KK_HakunaMatata]

Originally Posted by pandey.jai

What is the role of SKS Enterprises in this deal?

I presume they could be a DSA getting commission from the bank, like many of them in the field.

KK

[thanixravindran]

Originally Posted by RavyaLe

- Home lone linked to Separate Savings account, wherein we can park the idle amount (Similar to SBI Maxgain,).
Home loan Interest will be difference between Disbursed amount & SB deposited amount.
- SB Deposited amount will not generate annual interest.
- We can withdraw the amount in SB account as per our requirement even for under construction property (This provision is not provided by SBI Max gain account).
5) Property insurance at least for 5 years : Approximately 10,000/- to 12,000/-.
6) Documentation charges: 1,200 to 1,400/-.

Earlier SBI used to have the option in MaxGain to withdraw funds from the Separate Savings account at any time. We will be given a Cheque book for it as well you can transfer out online. I am wondering what is the use if it now if parked funds cannot be withdrawn for liquidity in SBI. It will then become like a Fixed Deposit, isn't it?

Also, please be aware Banks have internal/external audits and some times your loan account will be flagged with missing property insurance. I also did not took any term or property insurance during loan disbursement but after an year, I got a letter stating to get the property insurance. But the letter reached me 30 days or 2 months, so SBI added their property insurance for 15 years and added it to loan

I came to know that this is due to the audits both internal and external in nationalized banks from my Father In Law who was a banker in one of the other nationalized banks at that time.

[RavyaLe]

Originally Posted by pandey.jai

What is the role of SKS Enterprises in this deal?

Correction in the firm name : Kindly read as SK associates not SKS enterprises, mistake from my side while drafting the post.

They are the the agency to process the loan, may be they are getting the commission from the banks as well as builder to process the loan, I am not sure.

I never had to worry as they took care of the process and kept me posted on the progress. They aware of the entire procedures/ documents required for the approval. Mr. Umesh was also grounded and was picking up my calls whenever I called and answered my questions with lot of patience. This helped me a lot as a new person applying for home loan. They know the builder as well the bank staff. Any missing documents from builder, they arranged / picked from builder. I can say that I had a pleasant experience with him and the BoB team.

Good part is they never charged me for the processing and never delayed processing. This firm helped me to save time, money and eased my loan approval processing, that too during Pandemic days as I was stationed in another city.

Originally Posted by thanixravindran

Earlier SBI used to have the option in MaxGain to withdraw funds from the Separate Savings account at any time.

- I was also doubtful about this withdrawal facility from BOB, I enquired to the Bank staff, they updated that this is SB account we can withdraw as per our requirement. Since mine is u/construction property I wanted withdrawal facility as builder or another pandemic may delay the transfer of the property. I don't want to park the money for long time or as FD.

Originally Posted by thanixravindran

Also, please be aware Banks have internal/external audits and some times your loan account will be flagged with missing property insurance. .

- Thanks for this update. I was not aware of this. True the banks may bring the clause as per their wish after the loan sanction. I wonder how the SBI added property insurance without your consent. We have other options to take insurance and submit the proof to them.

As I mentioned I planned to take a term insurance for the loan amount in coming months. Term insurance has better benefits than bank insurance.

[thanixravindran]

Originally Posted by RavyaLe

Thanks for this update. I was not aware of this. True the banks may bring the clause as per their wish after the loan sanction. I wonder how the SBI added property insurance without your consent. We have other options to take insurance and submit the proof to them.

As I mentioned I planned to take a term insurance for the loan amount in coming months. Term insurance has better benefits than bank insurance.

I am a bit confused. Are you referring to the term insurance offered by the Bank along with loan that you were not taking but going for your own term insurance?

If so, yes, it is better to cover your liabilities with your own term insurance and you can pay each year till when you need it

But this is always optional for home loans because Bank has secured their loan via property even if the owner is no longer alive. The one time premium of the Bank term insurance is quite costly and they will add it to loan. Several years ago, one of my friend was duped by adding 1 Lakh premium for this one time term insurance which was added to loan and he was paying EMI for that also. Classic case of mis-selling.

However property insurance is little different and Banks wants to reduce their risk against natural calamities like earthquakes, floods washing away buildings. Here the owner survives and if he defaults, there is no property to auction to recover the loan amount. May be mine is individual house, so it was flagged in Audit. As mentioned, the letter or notice gave 15 days time beyond which they will do it. I think Rs. 15,000 as one time payment for 15 years was added to loan and I added the equivalent amount in MaxGain so that no interest is charged against it.

[RavyaLe]

Originally Posted by thanixravindran

I am a bit confused. Are you referring to the term insurance

- Yes, here I was referring to term insurance, this is only for loan protection in case of unfortunate incident.

Originally Posted by thanixravindran

The one time premium of the Bank term insurance is quite costly and they will add it to loan. Several years ago, one of my friend was duped by adding 1 Lakh premium for this one time term insurance which was added to loan and he was paying EMI for that also. Classic case of mis-selling.

- This one time Term insurance was offered by BOB, and they quoted 1.65 L (One time Premium) for my approved loan amount. If we take this onetime term insurance from BOB, they will reduce the interest rate further to 0.05%. I didn't opt for this.

Originally Posted by thanixravindran

However property insurance is little different and Banks wants to reduce their risk against natural calamities :

Oh! This is new to me. I was not aware of the property insurance. As per my understanding till date BOB not informed me about property insurance clause in home loan. May be once property ready and handed over to me, they may add this to my Homeloan premium.