CHEQUE BOOK

HT Estates - - HTESTATES - Harsh Roongta

I want to trans­fer my home loan from a hous­ing fi­nance com­pany to a na­tion­alised bank. What is the pro­ce­dure?

—Si­raj Bhalla You can def­i­nitely trans­fer your home loan to a na­tion­alised bank based on your re­pay­ment track record. There are two ma­jor charges that need to be taken into ac­count while trans­fer­ring the loan. The first one is the prepayment charge (at present payable only on fixed rate loans and on dual rate loans dur­ing the fixed rate ten­ure of the loan) that you will have to pay to your ex­ist­ing lender for prepayment of your loan and thus clos­ing your loan ac­count. If your loan is on float­ing rate of in­ter­est, the banks can­not levy this and, there­fore, you need not worry about the prepayment charges. The sec­ond one is pro­cess­ing fees, which you will have to pay to the bank, where you will trans­fer your loan. For a loan of ₹ 75 lakh, the bank you men­tioned of­fers you 10.15% rate on home loan and the pro­cess­ing free for bal­ance trans­fer is only ₹ 1,124/- (in­clud­ing ST)

In ad­di­tion to the cost as dis­cussed above trans­fer of loan from one lender to an­other also in­volves the modal­i­ties of hand­ing over the prop­erty doc­u­ments from your ex­ist­ing hous­ing fi­nance com­pany to the na­tion­alised bank. The ex­ist­ing lender typ­i­cally pro­vides a let­ter ad­dressed to the new lender pro­vid­ing a list of orig­i­nal doc­u­ments avail­able with them as a se­cu­rity with an un­der­tak­ing to re­lease the doc­u­ments within a cer­tain num­ber of days af­ter full pay­ment is re­ceived. The let­ter will also con­tain an amount on pay­ment of which the loan will be treated as fully paid off. For avail­ing loan from the new lender, you should have a track record of pay­ment of your EMIs in time to be able to get an of­fer from an­other bank to take over your ex­ist­ing loan at bet­ter rate of re­turns.

Check with ex­ist­ing lender it­self whether they are will­ing to drop the rate for you on pay­ment of a small fee, which will save you a lot of has­sles

I need a de­tailed com­par­i­son be­tween SBI Yuva and SBI Max­gain. Where should I park my sur­plus money to avail less in­ter­est?

—Su­rak­sha Shah Pri­mar­ily, SBI Yuva Home loan pro­vides 20% higher loan amount than that of a nor­mal home loan. This is for salar­ied em­ploy­ees only be­tween the age group of 21 to 45 years with a net monthly in­come of ₹ 30,000.

For the first home loan scheme, the bor­rower pays just the in­ter­est com­po­nent on the home loan for the first 36 months and the reg­u­lar EMIs start af­ter the end of 36 months. The loan amount el­i­gi­bil­ity for the sec­ond scheme is sim­i­lar to their reg­u­lar home loan el­i­gi­bil­ity. The min­i­mum loan amount you get is ₹ 5 lakh and the bank charges a pre­mium of 0.25% over and above the ap­pli­ca­ble home loan in­ter­est rate for a loan greater than ₹ 1 crore.You can use both your tem­po­rary and per­ma­nent sur­plus funds and thereby re­duce your in­ter­est costs to the ex­tent of the sur­plus funds de­posited in the ac­count and at the same time re­tain the flex­i­bil­ity of with­draw­ing the sur­plus for other uses as and when you may re­quire. Ev­ery month when the loan in­stall­ment is paid, in­ter­est at the ap­pli­ca­ble rate is cal­cu­lated on the ag­gre­gate prin­ci­pal out­stand­ing af­ter tak­ing into ac­count the bal­ance, if any, in the linked cur­rent ac­count. Putting money in the linked cur­rent ac­count is as good as tem­po­rary prepayment.

Harsh Roongta is CEO, Apna Paisa. He can be reached at ceo@ap­na­paisa.com

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