Loan Help

[Dhruvit.S]

Hi Guys,
I am planning on taking a home loan. It's a big amount for me. I don't know intricate details to lookout like ROI and tricks to get the rate lower.
Also things to lookout before signing for a loan.

Please share your suggestions and experience as to how to pursue.

Any suggestion will be of great help

Thanks in advance

 

[techsearch]

I can share what i have learnd from my experience:

• you can get better rates by negotiation, check with multiple lenders , some banks offer lower rate than normal if you show them rate you got from other banks.
• check your cibil score before starting the process, it there is any error then get it fixed.
• Understand prepayment rules and charges , also plan how you want to prepay your loan.
• go for maximum tenure, why ? because lower EMIs will help you during difficult times, it did help me during covid. and Whenever you have surplus money you can always prepay multiple times in a year.
• Check Tax benefits and apply for single or joint loan accordingly.

rest i think if you can provide more details i can share information accordingly.

 

[Slayer]

Prepayment is good with long tenure only if you pre-pay during the earlier part of your loan tenure

 

[Dhruvit.S]

I spoke with HDFC Bank. They offering at 8.5%
I feel it's high

 

[techsearch]

8.4 8.5 is the lowest you can get currently from well known lenders, because of high repo rate from RBI.
you can check with HSBC they may offer lower but they will bring it to the same level in two years...

 

[Dhruvit.S]

8.4 8.5 is the lowest you can get currently from well known lenders, because of high repo rate from RBI.
you can check with HSBC they may offer lower but they will bring it to the same level in two years...

So it's of no use to get from hsbc?

 

[techsearch]

ahh difficult to say, it really depends upon what terms and conditions they give you...my friend got cheaper loan from HSBC but now after 3 years roi is same for both of us...mine is from SBI..

best you can do is get sanction letter from HSBC and use that for negotiation with other lenders..

 

[Dhruvit.S]

ahh difficult to say, it really depends upon what terms and conditions they give you...my friend got cheaper loan from HSBC but now after 3 years roi is same for both of us...mine is from SBI..

best you can do is get sanction letter from HSBC and use that for negotiation with other lenders..

Do they charge for sanction letter?

 

[techsearch]

Do they charge for sanction letter?

sorry didn't get your question...

 

[akshayhs]

sorry didn't get your question...

He meant if they charge any amount/fee to issue the sanction letter?

 

[Dhruvit.S]

ahh difficult to say, it really depends upon what terms and conditions they give you...my friend got cheaper loan from HSBC but now after 3 years roi is same for both of us...mine is from SBI..

best you can do is get sanction letter from HSBC and use that for negotiation with other lenders..

I dad enquired with a cooperative bank. They said 7.5%

Take it with a grain of salt but can it be true and any issues?

Also there are non bank lenders so how are those?

 

[techsearch]

I dad enquired with a cooperative bank. They said 7.5%

Take it with a grain of salt but can it be true and any issues?

Also there are non bank lenders so how are those?

7.5 really ? i would also like to get my loan transferred there.

TBH while taking loan it doesn't really matter from where you are taking because we have to take money not give.....so even its corporative bank it should not be a problem, just check that they don't have any hidden condition.

If you get it for 7.5 then its a great deal i would say, is it fixed rate or repo rate based ?

Also for sanction letter banks dont charge anything nowadays, earlier they used to.

 

[Bodhi]

I can share what i have learnd from my experience:

• you can get better rates by negotiation, check with multiple lenders , some banks offer lower rate than normal if you show them rate you got from other banks.
• check your cibil score before starting the process, it there is any error then get it fixed.
• Understand prepayment rules and charges , also plan how you want to prepay your loan.
• go for maximum tenure, why ? because lower EMIs will help you during difficult times, it did help me during covid. and Whenever you have surplus money you can always prepay multiple times in a year.
• Check Tax benefits and apply for single or joint loan accordingly.

rest i think if you can provide more details i can share information accordingly.

Well put forth @techsearch 👍🏻