Home loan as suitable rate of interest

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sudhakar s. yeradkar (Querist)
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26 September 2011 Dear Sir,

I wanted to avail housing loan from HDFC for under construction property at Kalyan. Loan amount is Rs.3200000/- i.e 80% of total value of the property, for term 15 Years.

ROI
a)11% variable.
b)11.25% fixed for 3 years.
c)11.50% fixed for 5 years.
d)12.50% fixed till end of loan.

2nd Option is - If I take loan Rs.3000000/-

ROI
a)10.75% variable.
b)10.25% fixed for 3 years.
c)10.50% fixed for 5 years.
d)12.50% fixed till end of loan.

Please advise me in today's scenario which interest rate will be best for salaried people.

Your earliest reply will be highly appreciated.

Thanks in advance.

Rgds,

Sudhakar Yeradkar.

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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26 September 2011 Dear Mr. Sudhakar

I strongly suggest you not to go with the HDFC, ICICI Bank.

These private banks offering easy home loan at the initial period but subsequently they increase the ROI and un-match with what they offer to the new customer.

Some of m y clients are facing these problem, HDFC banks are charging ROI @ 11.75 % currently and offering 10.75% to the new customers. When asking for the reason they have simple reply, " sir its a system generated we cant help you in this matter"

When asked for takeover/foreclosure they are charging pre-payment/takeover penalty @ 2-3% which is totally illegal and unethical.

So suggest you to approach some Govt. Nationalized bank which is a fair players in home loan. They take some time in funding but will worth in long run.

Trust me you will be very thankful to me for this suggestion.

One more suggestion, better to not opt for fixed rate in Intt.Scheme by any banks since the ROI currently is on higher side. In future they will come down and its not a worthy decision to opt for higher ROI scheme.

With best regards.

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