Housing Loan is a long term commitment. Even if you go by an average tenure of 8 years, still housing loan can impact your finances if your choice is wrong. Let me be very honest and candid on reviews of home loan providers. You will not find consensus good reviews about any of the Housing Loan providers. At the same time, it is a personal experience and depend on a lot of factors. I shared pre home loan review of top 5. Now you must be wondering, how to finalize a housing loan provider. I suggest you go through the "Home Loan" section on this blog. Through various posts, i have shared the ... Read More
SBI FlexiPay Home Loan – Why you should Avoid
SBI FlexiPay Home Loan is a new Home Loan product from SBI. SBI is the country's largest lender. Obviously, i was expecting a lot of buzz around SBI FlexiPay Home Loan. I also shared in my post, why borrowers prefer SBI Home Loan. As usual, my friends from personal finance space jumped the guns to declare it is as the best product around. I will not get into the nitty gritty of SBI FlexiPay Home Loan. I hope all potential borrowers must have gone through the same. It is always important to analyze a product from end user perspective rather being a seller/marketer. The objective of this blog is ... Read More
New Lending Rate – Five Loopholes RBI Should Have Fixed
The new lending rate regime based on Marginal Cost of Funds will be implemented from April 01, 2016. There is a lot of anxiety among both potential and existing borrowers. It is because of uncertainty about the new lending rate. The key concern of a borrower is that we should not miss the bus. The new borrowers are postponing the home loan in anticipation of much lower interest rates. On the other hand existing borrowers are worried that banks may charge hefty conversion fees to shift them from Base Rate to new lending rate i.e. MCLR. This kind of anxiety was last seen when base rate replaced ... Read More
Home Loan Myths – Top 7 Myths Every Borrower Should Know
Home Loan Myths as the name suggests are the misconceptions about Home Loan. I tried to found out who all are responsible for home loan myths. My conclusion is that primarily three factors are responsible. The first one is a lack of knowledge of Bank/HFC (Housing Finance Company) employees. Secondly, the people around us who pass half baked information thus responsible for the viral effect of home loan myths. Till date, i have not come across a single person in my acquaintances who told me "I don't know". You can discuss anything and everything on this planet with people around you. They will ... Read More
Home Loan Rejection – 5 Hidden Reasons You are Unaware
Home Loan Rejection is a nightmare for a buyer. A proper homework is required to avoid Home Loan Rejection. As i keep highlighting that you should plan at least 18-24 months in advance. Thanks to rising NPA's of Banks, the home loan approval process is becoming more and more stringent. To counter this, more awareness is required to support the potential borrowers. The home loan staff of Banks and Housing Finance Companies are ill equipped to answer the queries of a potential borrower. Some of my readers shared with me how the helpline no's are ill prepared to handle basic queries. An ... Read More
Marginal Cost of Funds based Lending Rate – MCLR
The final guidelines on Marginal Cost of Funds based Lending Rate is released by the RBI on Dec 17, 2015. The Marginal Cost of Funds based Lending Rate will be implemented w.e.f April 01, 2016. There was strong opposition from banks to implement Marginal Cost of Funds based Lending Rate. The objective of RBI is to pass the benefit of REPO Rate cut to borrowers. As i mentioned in my other posts that in last one year, RBI has cut REPO Rate by 125 basis point. On the other hand, an average base rate cut by banks is only 70 basis point. Technically, the Repo rate cut is not fully transmitted to ... Read More