Please help with your Home Loan experience !! Newbie here

[|V|]

Hello Everyone,

I am a complete newbie regarding home, never taken any loan before. This home loan will be the first loan, hence I am seeking some expert's help.

I had booked the property in 2021 and still now I made 3 demands from the builder. Its still an under construction property
Now, the next demand they gonna make, I will need a homeloan to cater to that.

I have few questions on which bank would cater to my needs and provide much flexibility. Following are my requirement; please let me know based upon my requirement which bank should I go to ->

• Any 3rd party middle man who would get best deal for me ?

• What are the random charges for home loan; which bank would have least charges and what are the ways to avoid additional random charges ?

• Is pre-EMI a must ? I do not want pre-EMI where the principal component isn't deducted. I want regular EMI for under construction property. How is the interest charged or EMI charged on such situation : Lets say builder makes 10L demand now; I ask bank to disburse it. They disburse it; I pay EMI for 10L only, quickly what if I prepay this 10L entirely before next demand is done by the builder ? I have no EMI till next demand is disburse ? (I hope I made sense)

• I would want a hassle free pre-payment and pre closure option. Any excess fund I have which I don't invest; I would be putting it into the home loan account. My intension is to close this home loan in 5 years. Any bank which offers home loan for small timeframe of 5 years only.

• Minimal post closure hassle. Speaking to one of the Kotak agent; he mentioned I should avoid SBI; as they will keep the property document with them and after closure I will have to go through the hassle of taking the document back; Kotak claims they don't take original document.

• Option to take more funds for interior. Its always a good option to have incase I need more fund for doing the home interior.

Let me know your experience on these please. Thank you.

 

[arun4455]

Hello Everyone,

I am a complete newbie regarding home, never taken any loan before. This home loan will be the first loan, hence I am seeking some expert's help.

I had booked the property in 2021 and still now I made 3 demands from the builder. Its still an under construction property
Now, the next demand they gonna make, I will need a homeloan to cater to that.

I have few questions on which bank would cater to my needs and provide much flexibility. Following are my requirement; please let me know based upon my requirement which bank should I go to ->

• Any 3rd party middle man who would get best deal for me ?

• What are the random charges for home loan; which bank would have least charges and what are the ways to avoid additional random charges ?

• Is pre-EMI a must ? I do not want pre-EMI where the principal component isn't deducted. I want regular EMI for under construction property. How is the interest charged or EMI charged on such situation : Lets say builder makes 10L demand now; I ask bank to disburse it. They disburse it; I pay EMI for 10L only, quickly what if I prepay this 10L entirely before next demand is done by the builder ? I have no EMI till next demand is disburse ? (I hope I made sense)

• I would want a hassle free pre-payment and pre closure option. Any excess fund I have which I don't invest; I would be putting it into the home loan account. My intension is to close this home loan in 5 years. Any bank which offers home loan for small timeframe of 5 years only.

• Minimal post closure hassle. Speaking to one of the Kotak agent; he mentioned I should avoid SBI; as they will keep the property document with them and after closure I will have to go through the hassle of taking the document back; Kotak claims they don't take original document.

• Option to take more funds for interior. Its always a good option to have incase I need more fund for doing the home interior.

Let me know your experience on these please. Thank you.

I would suggest to go with SBI, if your property is approved by them. They are competitive in terms of the price. Slight hassles while taking the loan, but pre-payment and pre-closure will be hassle free. Loan account will be added as an account in your netbanking. You just can do the transfer from your account to loan account as many times as you want.

 

[|V|]

I would suggest to go with SBI, if your property is approved by them. They are competitive in terms of the price. Slight hassles while taking the loan, but pre-payment and pre-closure will be hassle free. Loan account will be added as an account in your netbanking. You just can do the transfer from your account to loan account as many times as you want.

Thanks for the input. The property is indeed approved by SBI and few others like HDFC, PNB, L&T Finance, ICICI and Axis.

There is not limit on how much pre-pay we can do in SBI correct ? Unlike in HDFC where I heard you can only do fixed prepay in a year.

 

[arun4455]

Thanks for the input. The property is indeed approved by SBI and few others like HDFC, PNB, L&T Finance, ICICI and Axis.

There is not limit on how much pre-pay we can do in SBI correct ? Unlike in HDFC where I heard you can only do fixed prepay in a year.

There is no limit in SBI on prepayment. They calculate the interest on daily balance, so amount is adjusted on the date of payment itself.

 

[opaque]

SBI - if you want to prepay any amount without going to branch.

Also, if you are salaried and willing to move your salary account, check if they have any concession ( like 0.1% lower rate, lower processing fee).

I was told that I can start prepayments only after paying 6 EMIs. So check if this rule is still applicable.