Home Loans is one area wherein you really have to be carefull about your dealings and know your exact requirements.Various banks give home loans in lots of flavours.Basically in a home loan there are two components.One is your eligibility based primarily on your salary and other assets, and secondly the market value of the place you want to buy.First you need to find out what is your eligibility for loan .for this you will need to apply for a home loan to the bank in my example it was ICICI .they charge you a processing fees of 5650 .Out of which if you are not taking the loan you are entitled to get half the money back(other half is taken as processing fees).Here note that the sanctioned amount and sanction letter are valid ony if you ask for disbursement within next 6 months, otherwise you will have to apply again.
Now the main factor for a loan is the rate at which you are getting it and under which category.basically there are two categories fixed and floating.Usually fixed rates would be higher by 0.5 to 2 percent than floating.we went for floating rate of 7.25 which is icici rate for corporates.We had heard several concerns against this bank in terms of disbursement, charging higher rate after some months, etc, but this is the only bank which according to me gives you the highest amount of loan.we had applied to HDFC, HSBC and ABN AMRO too but we got the best deal from icici.remember that the disbursement value of loan depends on the market value of the property.so even if your eligibility is 30 lakhs you might get just 0-85% of it depending on the property.If it is a A grade construction like Raheja, hiranandani, lokhandwala then you can get around95% or even 100% of your eligibility.
we had a really bad experience with abn amro.We had long talks with HDFC guys too, but they couldnt give us the amount we were looking for.SBC also has good shemes like smart homes, but they charge at 8% which is a bit higher side, although in long run it comes out to be less(since it depends on how much savings you keep in your hsbc account).
Well we had finalised a proery in thakur complex and our icic agent had promised us atleast 90% of loan. He suggested that if want higher loan we can get it by investing some amut in home insurance.so we invested around 40k extra for getting 3%more loan.so finally we had to give the downpayment of only around 2 lakhs in total cost of 32 lakhs, which was a great deal for us.it has been 2 months now and there has been no problem in EMI calculation etc till now.
some other things to consider before going for a home loan are pre payment facility.some banks charge heavy penalyth if you want to repay the loan earlier while some banks have a limit to the number of times you can repay in a year.ICICI has best of both worlds.you can pay the total amount at a small penalty or pay everything except 1 lakh of loan without any penalty.so my advise would be instead of paying everything leave 1 lakh for ur loan which would result in minimal EMI.
for knowing your eligibility it takes at the max 7 working days while for disbursement of loan it should not take more than 5 working days provided the builders papers are clear.
But loans keep on changing so it is always better to check some prominent schemes at that time.my best bet is ICICI if you want a big loan or HDFC if you can afford a good downpayment.You can also go for a scheme in ICIC similar to smart homes of HSBC wherein your interest and EMI decrease depending on your balance in you ICICI account.