Echoes: Home Loans – Are they good enough?

Are you happy with the current home loan schemes you are with? We ask…

Echoes Sohel Ajani

Sohel Ajani, IT Sector
I had a current loan with Bank of Baroda with an interest rate of 11 per cent. It has now decreased to 9.5 percent but today the market rates are 8 to 8.5 per cent. SBI has a good package. Even my brother who has a loan with HDFC in Pune got it decreased to 8.5 per cent with a payment of Rs 6,500. With all this, I am not happy with my loan.

Rizwan Khan, BPO Sector
ICICI Bank, with whom I have a loan with, is not lowering their rates for their existing customers. Existing customers are paying 10-11.5 per cent whereas new customers are getting at 8.5 per cent. Also I had considered changing over to another bank – like SBI – but the paperwork involved and the down-payment of penalty of 2.25 per cent plus additional fees, conversion charges and documentation charges accumulated to approximately Rs 3.5 lakhs. I cannot afford to pay such a high amount at one go even though in  the long run it may be cheaper for me.

Echoes Pratik Ajinkya

Pratik Ajinkya, Services Sector
I currently have a loan with ICICI and I am not happy with it. I am paying a bomb as compared to the market rates. I am currently paying an interest of 12.5 per cent with ICICI. I am planning to switch over to SBI. The formalities have already been done and I should be switching over to them in the following month. And although there is a charge to pay, I stand to gain in the long run.

Norini Mathais, Financial Sector
I have a loan with ICICI. I am pretty ok with their scheme. But yes there are others out there with better ones – namely SBI, although I don’t have any issues with the current scheme. When I had initially taken the loan with ICICI it was more or less as per the market rates. Although there are a few aspects that need to be heeded. For instance, when there is a change in the rate of interest we are notified by ICICI. However, when there are any internal reductions for certain schemes the bank does not inform us proactively. We only get to know about these if you ask them yourself. It is a bit unfair considering I have never missed a single payment in the last four years and my credit history is commendable.

Echoes Priyank Misra

Priyank Misra, Advertising
I am currently with Bank of Baroda with a floating rate of interest and am happy with the scheme. I am satisfied that it has transparency, the rates are pretty much normal, it’s a government bank and we make regular payments. The only problem that I see is that even if we pay off the home loan earlier than the stipulated time, a 2 per cent penalty is charged. So in the long run it does a bit of an unnecessary financial drain. But all-in-all I am content.

Sameer Rana, Financial Sector
I have a home loan with ICICI. Although others are offering lower interest rates, I opted for someone who would address my needs at the earliest. SBI for instance has a lot of procedural requirements and I did not wish to get into that hassle.

Echoes Amit Karnad

Amit Karnad, Services Sector
If I need to quantify the current home loan scheme that I am on, I would give it a rating of 6 or 7 out of 10. I have a loan with HDFC. It is not as economical as SBI. On a pure interest rates basis of course. HDFC’s revision of interest rates is not delayed and is more or less prompt. And it is not like ICICI. ICICI is rigorous and rigid and like other MNCs tend to be very aggressive. For instance, with HDFC, I got delayed with a payment in the month of September but I was not charged a late fee which MNCs generally tend to do. I would prefer SBI over HDFC but I can’t afford to switch over now. To sum it up, I am better off than ICICI but worse off than SBI.

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