Help me choose the best bank for Home Loan

Icici. 

Ask HDFC to reduce rate of interest.

I got an offer for 8.45%

ChindiChor99 wrote:

Ask HDFC to reduce rate of interest.

I got an offer for 8.45%

He said it is based on Cibil and the lowest he can offer is 8.5%. My Cibil is 794, is yours' more than 800?

If open to Public Sector bank, why avoid BOB, I've heard they have one of the lowest interest rates and other fees.

Plus, used to have accounts with them earlier. BOB afaik should be better than SBI as they aren't overworked like SBI and won't make you run as much

Pravnz wrote:
He said it is based on Cibil and the lowest he can offer is 8.5%. My Cibil is 794, is yours' more than 800?

my CIBIL is 999999999

Go for "money saver" home loans. Some banks that provide are ICICI, SBI, Standard Chartered.

I would recommend SBI if you property has all the documents in place . Check if you have a SBI Home Loan Processing Center in your city and if yes opt for the loan from them rather than the nearest branch. 

With private sector banks property insurance is mandatory, with SBI I just had to give an undertaking 3 years back that I have adequate Term Cover to avoid the scam of property insurance which banks trick you into buying .

With HDFC  ( pre merger ) since it was not a Bank I guess we had to request for rate waivers and it was not linked to REPO.

If your Home Loan is going to be for a long tenure like 20 or 30 years , I would blindly opt for SBI to avoid any future issues.  Home loan is generally a long term commitment and with so many changes in law the private banks find a way or another to make money as soon as the law changes .  The best interest rate providing bank today , will surely change in the next 2 years and the existing customers get stuck as for interest reduction 

Avoid getting into the trap of cheapest interest rate with private sector banks if you need piece of mind . 

Also on the contrary , for Home Loans we do not really need to do much once the loan is processed . Pay EMIs , do prepayments , get the yearly Interest Certifictate and I have never visited SBI Home Loan Branch for any of these.  EMIs / Prepayments you can do from Netbanking or YONO .

Automatically get the SBI Interest Rate Certificate on email / or you can drop your branch an Email for any mid year certificate need and you get it done. You can request from the app / website as well but I guess it does not happen as quickly as the Auto Email / mailing the branch 

Also note that SBI doesn't charge you for pre closure of home loan but the private banks do.

My home loan is also from SBI and best would be to get hold of an agent and get it done from there only. He'll charge nominal amount, should be less than 5k

22sumit wrote:

Also note that SBI doesn't charge you for pre closure of home loan but the private banks do.

My home loan is also from SBI and best would be to get hold of an agent and get it done from there only. He'll charge nominal amount, should be less than 5k

With variable rate loans from Scheduled Commercial Banks under RBI there are  no pre closure now. I think only NBFCs and probably Co-operative banks would have the pre closure charges now . 

However, banks charge a fixed amount of few thousand for releasing the documents and stuff though not in the name of preclosure charges 

Fixed rate home loans which are rare now I guess continue to have the pre closure charges. 

PaytmKaPoojari wrote:
With variable rate loans from Scheduled Commercial Banks under RBI there are  no pre closure now. I think only NBFCs and probably Co-operative banks would have the pre closure charges now . 

However, banks charge a fixed amount of few thousand for releasing the documents and stuff though not in the name of preclosure charges 

Fixed rate home loans which are rare now I guess continue to have the pre closure charges. 

Any difference in pre-payment charges between NBFCs and Scheduled banks?

Pravnz wrote:
Any difference in pre-payment charges between NBFCs and Scheduled banks?

Please go through my comments here. I have experience with SBI and would not suggest it if you don't want to run around for service. If you still have doubts after reading this please let me know i will try to help:

https://www.desidime.com/discussions/home-loan-...

You can go for another public sector bank like Indian Bank,BoB ,if you want loan earlier..as like SBI they don't have much loan proposal/burden..they will process it quickly..

If you anticipate extra money to park in future, then opt for SBI maxgain account (overdraft). You will save lot on interest. Google for maxgain product. But if no extra amount to park, then dont go for maxgain. 

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I had loan with ICICI had to pay them 1180 to reduce the interest rates and still they would not compete with what they offer to new customers, I understand that is not the case with SBI or Public sector banks as they mostly automatically follow EPR rates and spread throughout  tenure

SuperKnight wrote:

I had loan with ICICI had to pay them 1180 to reduce the interest rates and still they would not compete with what they offer to new customers, I understand that is not the case with SBI or Public sector banks as they mostly automatically follow EPR rates and spread throughout  tenure

This is exactly why I am skeptical to go with private banks

Pravnz wrote:
This is exactly why I am skeptical to go with private banks

My rate rose to 9.45 when in covid times it was around 6.8, and they were offering me 9 even when i paid 1180 bucks while they were offer 8.6 to new customers easily. so choose either peace of mind with high interest or low interest but with relatively more struggle to start with

PaytmKaPoojari wrote:

I would recommend SBI if you property has all the documents in place . Check if you have a SBI Home Loan Processing Center in your city and if yes opt for the loan from them rather than the nearest branch. 

With private sector banks property insurance is mandatory, with SBI I just had to give an undertaking 3 years back that I have adequate Term Cover to avoid the scam of property insurance which banks trick you into buying .

With HDFC  ( pre merger ) since it was not a Bank I guess we had to request for rate waivers and it was not linked to REPO.

If your Home Loan is going to be for a long tenure like 20 or 30 years , I would blindly opt for SBI to avoid any future issues.  Home loan is generally a long term commitment and with so many changes in law the private banks find a way or another to make money as soon as the law changes .  The best interest rate providing bank today , will surely change in the next 2 years and the existing customers get stuck as for interest reduction 

Avoid getting into the trap of cheapest interest rate with private sector banks if you need piece of mind . 

Also on the contrary , for Home Loans we do not really need to do much once the loan is processed . Pay EMIs , do prepayments , get the yearly Interest Certifictate and I have never visited SBI Home Loan Branch for any of these.  EMIs / Prepayments you can do from Netbanking or YONO .

Automatically get the SBI Interest Rate Certificate on email / or you can drop your branch an Email for any mid year certificate need and you get it done. You can request from the app / website as well but I guess it does not happen as quickly as the Auto Email / mailing the branch 

Spoke with SBI Agent today and he said property insurance is mandatory, looks like I need to talk to a manager

Edit: Spoke to Loan Managers from couple of branches, they said Property insurance is mandatory and it is part of the application. One guy said even he too had paid the amount for his home loan
Also, the MITC (Page-2, not page 1) for SBI Home loan mentions about property insurance
"Insurance:
The house/flat shall be insured comprehensively for the market value covering fire, flood, Earthquake etc.
in the joint names of the Bank and the borrower. Cost of the same shall be borne by the borrower."
https://www.sbi.co.in/webfiles/uploads/files/13...

SuperKnight wrote:
My rate rose to 9.45 when in covid times it was around 6.8, and they were offering me 9 even when i paid 1180 bucks while they were offer 8.6 to new customers easily. so choose either peace of mind with high interest or low interest but with relatively more struggle to start with

have they hiked more than repo rate % hike by RBI ? 
If yes then what is the meaning of repo link home loan ? 

I m having loan in SBI at 6.7%. Now it is at 9.2% (They have hiked exactly same as repo rate hike of RBI). Although story is same in SBI too. My rate is 9.2% while they are offering 8.5% to new customers  
Not only that, they are not reducing my rate even when I m ready to pay some amount. 

SuperKnight wrote:

I had loan with ICICI had to pay them 1180 to reduce the interest rates and still they would not compete with what they offer to new customers, I understand that is not the case with SBI or Public sector banks as they mostly automatically follow EPR rates and spread throughout  tenure

I have loan with LIC.. My interest rate is also 9.45. What is that amount bro, 1180?

Pravnz wrote:
He said it is based on Cibil and the lowest he can offer is 8.5%. My Cibil is 794, is yours' more than 800?

No, mine was also 794 when I applied for the loan.
But 8.45 and 8.5 are pretty much same. Doesnt have much affect on EMI.

satish_26284 wrote:

I have loan with LIC.. My interest rate is also 9.45. What is that amount bro, 1180?

1180 is rate conversion charges...icici has option to reduce spread based on your relationship with icici during loan tenure ...  Home loan interest is Repo rate + Spread.

drjpatwa wrote:
have they hiked more than repo rate % hike by RBI ? 
If yes then what is the meaning of repo link home loan ? 

I m having loan in SBI at 6.7%. Now it is at 9.2% (They have hiked exactly same as repo rate hike of RBI). Although story is same in SBI too. My rate is 9.2% while they are offering 8.5% to new customers  
Not only that, they are not reducing my rate even when I m ready to pay some amount. 

You can request for lower rate. This will hit cibil score. Also check for sbi limit where they take into consideration if amount of loan is somewhere above 25 lacs. In my brother case loan amount was slightly lower than 25 lac as outstanding when we approach for lower rate of interest. There can be slabs when u want to reduce interest from same amount. Try to connect agent or from where from your loan sanctioned.

If any one of you are in Gurgaon, and your existing home loan ROI is above 9%, you can DM me for getting loan takeover in public sector bank with almost no expense. I am employee not agent.

asli_shashikant wrote:
You can request for lower rate. This will hit cibil score. Also check for sbi limit where they take into consideration if amount of loan is somewhere above 25 lacs. In my brother case loan amount was slightly lower than 25 lac as outstanding when we approach for lower rate of interest. There can be slabs when u want to reduce interest from same amount. Try to connect agent or from where from your loan sanctioned.

I contacted both local branch as well as RACPC. They are saying we are transparent & like the private banks. We don't have any such system to lower interest rate even y paying some amount. 

Cibil hit i won't mind. I already have 803 cibil. My current outstanding loan is 19 lacs. So in ur brother's case, did they lowered Interest rate? What was the procedure u followed? 

My brother was exactly same situation as you 3 months ago. Has salary account, cc with ICICI.

Also he had considered 3 options as you and seller was not ready to wait for more than 1 month. That ruled SBI out.

I am not sure if HDFC home loan is via HDFC LTD OR HDFC bank currently.

If there is no difference of ROI, charges better you go with ICICI.

that's what my brother did and it was very fast process. In your case try to visit nearest branch and esclate issue of your manager not responding.

drjpatwa wrote:
I contacted both local branch as well as RACPC. They are saying we are transparent & like the private banks. We don't have any such system to lower interest rate even y paying some amount. 

Cibil hit i won't mind. I already have 803 cibil. My current outstanding loan is 19 lacs. So in ur brother's case, did they lowered Interest rate? What was the procedure u followed? 

No. It was slightly lower than 25 lacs. They said 25 hona chye tha toh dekh lete. Even cibil was hit after this due to enquiry. This written application by hand went to Belapur - navi mumbai branch for checking. Sadly nothing happened no lower rate of interest.

drjpatwa wrote:
have they hiked more than repo rate % hike by RBI ? 
If yes then what is the meaning of repo link home loan ? 

I m having loan in SBI at 6.7%. Now it is at 9.2% (They have hiked exactly same as repo rate hike of RBI). Although story is same in SBI too. My rate is 9.2% while they are offering 8.5% to new customers  
Not only that, they are not reducing my rate even when I m ready to pay some amount. 

If you are not in Maharashtra opt for a balance transfer, Maharastra Govt charge .3% additional so you have to add that while deciding

SuperKnight wrote:
If you are not in Maharashtra opt for a balance transfer, Maharastra Govt charge .3% additional so you have to add that while deciding

I m thinking to shift to HDFC. But these private players are notorious. In PSU 1 thing is sure - Spread won't change. So when i took home loan at that time repo rate was 4% & their spread was 2.7% effectively i got loan at 6.7%. So in PSU it is very much straight forward now that my loan rate will be 2.7% + repo (Which is currently 6.5%). So now my loan is 9.2% currently. 

While in private players are I m not sure whether they will follow same path or not. Like Currently they are offering HL at 8.5% (Means at 2% spread). If in future repo rate goes back again to 4%, I m sure at that time my home loan won't be at 6% in private banks. 

For OP, i would say SBI or other PSU would be best bcoz they won't play with spread & currently spread is lowest !!!