CHEQUE BOOK

HT Estates - - HTESTATES - Harsh Roongta

Our builder is suggest­ing that we show lesser value on doc­u­men­ta­tion (of our house). Will we be able to re­alise 80% of the to­tal value we are pay­ing as promised by the banker in the be­gin­ning?

— Ra­jesh Nor­mally banks grant home loan up to a max­i­mum of 80% (90% for loan amount below ₹ 20 lakh) of the agree­ment value of the prop­erty as a home loan. You will have to pay for stamp duty and reg­is­tra­tion charges, as banks no longer fund th­ese charges. The el­i­gi­bil­ity will be based on in­come and re­pay­ment track record. An agree­ment for lower amount will def­i­nitely re­duce your stamp duty and reg­is­tra­tion charges. But you need to take into con­sid­er­a­tion that it may also re­duce your chances of get­ting the de­sired loan amount and in­crease your down pay­ment. I am 28 years old and my an­nual salary is about ₹ 10 lakh. I want to take a home loan of ₹ 19.6 lakh for a ready-to-move-in flat. My loan has been sanc­tioned at 10.10% fixed for two years (my loan ten­ure is 15 years). But, the in­ter­est rate after two years has not been dis­closed as yet. I am told that the in­ter­est rate will be as per their BPLR (bench­mark prime lend­ing rate) of that time. I am afraid that my in­ter­est will be in­creased after two years. In the mean­time, I have al­ready ap­plied for a loan with an­other bank where I have my salary ac­count. This bank is of­fer­ing a rate of 10.15%, but it is linked to the base rate, which I feel will come down in the near fu­ture. But, even after 1.5 months, they are quite slow. Should I wait for this bank or should I go ahead with my ear­lier lender?

—Vi­nay Shroff As per the guide­lines on fair prac­tices code for hous­ing finance com­pa­nies is­sued by the Na­tional Hous­ing Bank, “The HFCs should con­vey in writ­ing to the bor­rower by means of a sanc­tion let­ter or oth­er­wise, the amount of loan sanc­tioned along with all terms and con­di­tions in­clud­ing an­nu­alised rate of in­ter­est, method of ap­pli­ca­tion, EMI struc­ture, pre­pay­ment charges and keep the writ­ten ac­cep­tance of th­ese terms and con­di­tions by the bor­rower in its records.”

Make an of­fi­cial com­plaint ei­ther in writ­ing at the head of­fice of the ear­lier HFC you had con­tacted or on its web­site. If the query is not re­solved to your sat­is­fac­tion within 30 days, you can approach the Na­tional Hous­ing Bank (which gov­erns all hous­ing finance com­pa­nies). Their ad­dress is Na­tional Hous­ing Bank, Depart­ment of Reg­u­la­tion and Su­per­vi­sion, (Com­plaint Re­dres­sal Cell), 4th Floor, Core 5-A, In­dia Habi­tat Cen­tre, Lodhi Road, New Delhi – 110003. The com­plaint can also be emailed at cr­cell@ nhb.org.in

Ide­ally, you should opt for a float­ing rate loan from your sec­ond lender as their base rate sys­tem is likely to be more trans­par­ent and you may also get the ben­e­fit of re­duced rates. If you feel that you are pay­ing a higher rate than what is be­ing of­fered in the mar­ket, you can shift your float­ing rate loan to any other lender that of­fers you a lower rate of in­ter­est. You will not have to pay any penalty on th­ese bal­ance trans­fers. This will not be pos­si­ble in case of a dual rate sys­tem when they are in fixed rate stage.

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

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