Benefits of Applying Online
When Banks Compete, you win.
Apply for a Home Loan at ApnaPaisa and we will match your requirements with the best offers from our network of over 400 service providers. We will get a maximum of five providers to compete for your business. WHEN BANKS COMPETE YOU WIN. You can then decide which home loan is best for you based on:
- Lowest Interest Rate
- Lowest EMI
- No Pre-payment charges
- Lowest Processing Fees
- Maximum Eligible Loan Amount
- Mandatory Documents Required
- Lowest Processing Fees
Or any other factor that is important to you.
Negotiating Tips
1) If you have a good credit record and your income is sufficient to justify the loan you can negotiate on interest rates. You can also try and get Processing fees or legal or valuation fees reduced or completely waived.
2) If you go for a floating rate loan then pre-payment charges are not payable.
3) When interest rates are high and are expected to go down you should go in for a floating rate loan as it makes no sense to lock into high fixed rates or the so called Dual rate loans where rates remain fixed for a couple of years before shifting to regular floating rate loans. Please review this decision at least once every 6 months
4) Take term insurance and critical illness and accidental disability policy for the full loan amount to make sure you or your loved ones don't have to worry about loan repayment should you die or are disabled due to a critical illness or accident. You cannot be forced to buy this policy from the insurance company chosen by the lender - you should choose your own insurer.
Canara Bank new Home Loan scheme Does it make sense?
Canara Bank announced a new home loan scheme, marking a new high in the home loan battleground. It is not yet known whether Canara Bank will offer the new scheme to its own existing home loan borrowers.Harsh Roongta
05 Mar 2009
Canara Bank yesterday announced a new home loan scheme clearly marking a new high in the home loan battleground. As consumers are still not very enthusiastic on clearly targeted at the existing home loan consumers of other banks, it is not yet known whether Canara Bank will offer the new scheme to its own existing home loan borrowers.
The comparison charts for various loan slabs is given below:
Table A
Loan Tenures in all cases is 20 years
| Loan Amount - Rs. 5 lacs+ upto Rs. 30 lacs | LIC Housing Finance |
Canara Bank/State bank December Scheme |
Canara Bank March Scheme |
HDFC Limited | State Bank February Scheme |
| EMI Per Lac |
Rs. 884 | 916 | 930 | Rs. 949 | 961 |
| Interest Rate | 8.75% | 9.25% | 9.46% | 9.75% | 9.94% |
| Processing Fees | 0.50% - 1% | nil | nil | 0.50%-1% | nil |
| Comments | Floating | 5 years fixed and resettable thereafter. Only single owner and fresh purchase allowed. | 1st year -8.25% fixed for 1st year and next 4 years - 9.25% fixed & 2% below BPLR (minimum 10%) after that. | Floating | 8% fixed for 1st year and applicable floating rate thereafter. Current rate is 10.25% |
| Open for full/partial Disbursement till | till further notice | 30th June 2009 | 31st December 2009 | till further notice | 30th April 2009 |
| Pre-payment Charges |
2% | 2% | 2% | 3% | 2% |
| Comments |
| Free Life Insurance | Blended Interest rate and EMI given above |
| Blended Interest rate and EMI given above |
|
Changes in Interest Rate/EMIs |
can increase/decrease at any time | can increase/decrease after 5 years | can increase/decrease after 5 years | can increase/decrease at any time | can increase/decrease after 1 year |
| Eligibility calculated as per | first year EMI | first year EMI | Data Not Available |
first year EMI | Second year EMI based on current applicable floating loan rates |
The scheme marked in yellow is good but available only for loans upto Rs. 20 lacs and the PSU banks are not really keen to push them as the scheme was announced under political pressure. So several barriers such as considering only a single person's income for eligibility and allowing only one person as a borrower (even husband and wife are not allowed as co-borrowers thus preventing them from claiming tax benefits), very high margins (about 25% of the cost of the property) and lower eligibility for the same amount of income ensures that this is not available for most prospective borrowers. LIC Housing Finance continues to be the cheapest but the Canara Bank scheme is worth considering also since it offers fixed interest rates for the first 5 years. If at the end of the 5 years the interest rate is higher than what is available in the market you can always shift your loan to another lender. Clearly, HDFC is much better than the well-marketed 8% scheme from SBI.
| Loan Amount - Rs.30lacs+ upto Rs. 75 lacs | LIC Housing Finance | Canara Bank March Scheme | State Bank February Scheme | HDFC Limited |
|
|
|
|
|
|
| EMI Per Lac |
Rs. 949 | 962 | 990 | Rs. 1,015 |
| Interest Rate | 9.75% | 9.95% | 10.37% | 10.75% |
| Processing Fees | 0.50% - 1% | nil | nil | 0.50%-1% |
| Comments | Floating | 1st year -8.75% fixed for 1st year and next 4 years - 9.75% fixed & 1.50% below BPLR (minimum 10%) after that. | 8% fixed for 1st year and applicable floating rate thereafter. Current rate is 10.75% | Floating |
| Open for full/partial Disbursement till | till further notice | 31st December 2009 | 30th April 2009 | till further notice |
| Pre-payment Charges |
2% | 2% | 2% | 3% |
| Comments |
| Blended Interest rate and EMI given above | Blended Interest rate and EMI given above |
|
| Changes in Interest Rate/EMIs |
can increase/decrease at any time | can increase/decrease after 5 years | can increase/decrease after 1 year | can increase/decrease at any time |
| Eligibility calculated as per | first year EMI | Data Not Available |
Second year EMI based on current applicable floating loan rates | first year EMI |
For loans greater than Rs. 30 lacs and upto Rs. 75 lacs, the scenario does not change much with the ranking order remaining more or less the same except that the State Bank scheme is cheaper than HDFC in this case.
Clearly, the home loan market is hotting up with promise of more goodies to come in the near future. With builders beginning to price a little more realistically, we should finally see some consumer interest come into this sector.