Home loan Suggestions?
LICHFL, HDFC etc. provides home loans based on PLR and spread discount.
SBI, Axis banks provide home loan based on base rate.
I should go for which type of home loan plr based or base rate based?
What are the plus and minus points in both type of home loans?
SBI, Axis banks provide home loan based on base rate.
I should go for which type of home loan plr based or base rate based?
What are the plus and minus points in both type of home loans?
All are giving only Sugar Coated promises. Base rate is always above PLR only.
Banks/institutions offers concessional rates for new clients only to woo them. But that concession is only for temporary period of next raise by RBI. This fact is clearly told only by LIC HFL. So you can rely on LICHFL .
Banks/institutions offers concessional rates for new clients only to woo them. But that concession is only for temporary period of next raise by RBI. This fact is clearly told only by LIC HFL. So you can rely on LICHFL .
Following the Reserve Bank of India’s (RBI’s) decision to hike its key policy rates in its monetary policy review last month, some banks have raised their prime lending rates (PLR) even as they left their recently-declared base rates unchanged.
According to the RBI’s guidelines, all categories of loans sanctioned after July 1 have to be linked to base rate — the floor rate below which a bank cannot lend, while the ones extended during the old regime could continue till they are up for renewal or a switch over takes place on mutually agreed terms.
For home loan borrowers, what the recent PLR hike means is that those who have taken a loan after July 1 — when the base rate regime came into being — will not be affected by this hike, but those who have not made the switch to base rate yet will see their equated monthly instalments (EMI) moving northwards. It is seen as an attempt by lending banks to coax borrowers to embrace the new benchmark.
Consequently, the question topmost on the minds of borrowers with home loans linked to PLR is whether it’s best to voluntarily shift to base rate to ensure lower home loan interest rate. The answer to the question perhaps depends on the situation you are in.
According to the RBI’s guidelines, all categories of loans sanctioned after July 1 have to be linked to base rate — the floor rate below which a bank cannot lend, while the ones extended during the old regime could continue till they are up for renewal or a switch over takes place on mutually agreed terms.
For home loan borrowers, what the recent PLR hike means is that those who have taken a loan after July 1 — when the base rate regime came into being — will not be affected by this hike, but those who have not made the switch to base rate yet will see their equated monthly instalments (EMI) moving northwards. It is seen as an attempt by lending banks to coax borrowers to embrace the new benchmark.
Consequently, the question topmost on the minds of borrowers with home loans linked to PLR is whether it’s best to voluntarily shift to base rate to ensure lower home loan interest rate. The answer to the question perhaps depends on the situation you are in.
Start process with both and give processing fees cheque to both as required.
Observe whom you are more comfortable with.
Once you get approval from both decide based on your experience.
Arrange stop cheque payment for the other one and inform them that you are not comfortable and don't want to continue.
Observe whom you are more comfortable with.
Once you get approval from both decide based on your experience.
Arrange stop cheque payment for the other one and inform them that you are not comfortable and don't want to continue.
go for home loan based on based rate.it is more convenienient.
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