Apr 24, 2015 06:21 PM
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HDFC HOUSING LOAN - Home loan – worst experience- horrible nightmare. Genuine HDFC Housing loan experience, not a complaint.
A FEW FACTS:
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*HDFC housing loan company is completely different from HDFC Bank.
HDFC is NOT HDFCBANK
HDFC website is: hdfc. com
HDFCBANK website is: hdfcbank. com*
HDFC is regulated by NHB(National Housing Board) just like other housing finance companies LICHFL, DHFL, Sundaram BNP Paribas Home Finance Limited,
ICICIBANK homeloans, AXISBANK homeloans, SBI Bank homeloans, Andhra Bank Home loans, Syndicate Bank homeloans, PNB Punjab National Bank Home loans, etc are regulated by RBI(Reserve Bank of India)
Please take sometime and read the complete review for clear picture and details.
WHO TO GO TO … for a HOME LOAN?
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Now the question is … which is a good financing bank/company for the Home-Loan? Which Bank or housing finance company should one choose for the purpose of housing loan?
The answer is simple based on a couple of years of experience with various banks and housing finance companies: The best option is to go with an approved bank for the property e.g. in case Sobha property is approved by SBI(State Bank of India) the approval and legal process is very quick and smooth.It is ALWAYS PREFERABLE TO be financed by a BANK instead of HOUSING FINANCE CO.
NEVER GO WITH A HOUSING FINANCE CO. when it can be avoided(e.g. in case of A-Khata properties, always use a bank, in case banks are not willing to finance the property only then approach a housing finance company(B-Khata properties have no title and therefore cannot be financed).
The best I have seen is SBI bank(some hassles initially with a lot of delays and paperwork), but once completed, no tension for excessive charges or anything of that sort. Comparatively HDFC(Housing Development Finance Company is THE WORST finance company to approach for “HOME LOAN“ or “housing loan”.
Take my advice, NEVER EVER GO TO HDFC LTD FOR A HOUSING LOAN!
HDFC Ltd attracts house buyers by offering low interest rates in the market, however, you should be aware with whom you are dealing with….!
Initially they make it seem that everything is very easy and simple. E.g. 3 payslips, 1 identity proof, 1 address proof but as SOON AS you HAND OVER YOUR PROCESSING CHEQUE FEE of Rs 11, 236 all hell will break loose. They will clear the cheque for Rs. 11, 236 and then that’s the END!
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ONCE YOUR PROCESSING FEE CHEQUE IS CLEARED, THE SAME PERSON WHO CALLED 2 TIMES IN A DAY IS NO LONGER INTERESTED IN WHO YOU ARE. IN FACT, HE WONT EVEN ACCEPT YOUR PHONE CALLS ANY MORE.
HDFC LTD "BACK OFFICE" team comes on the scene and starts interacting with you. The person who collected the PROCESSING FEE has finished his work and disappeared. HDFC Ltd back office staff(just like part time freshers thinking they are doing a big job) will start asking a number of questions:
( As soon as your cheque is cleared they debit your loan account for Rs 536 as CERSAI charges) plus service tax.
CERSAI= CEntral Registry of Securitization Asset reconstruction and security interest of India
HDFC Ltd back office will start asking a number of questions or to do the following tasks/activities as follows(if you fail to do as per their directions, your loan application is rejected and processing fee is forfeited):
Send an email from your office/corporate email ID for verification of company you are working for(they will reply to that email and ask for digital copies of “Form 16” for the last 3 years)
Bank statement copies for the last 6 months
Salary slips for the last 3 months
They also require latest 3 years of Income tax return filing
The process that’s 3 – 4 weeks for the verification so they then ask the latest 1 more months bank statement and salary slip
CTC break up of the salary(either letter from HR dept showing the same or last promotion letter in which the same is seen) Computer screenshots will not do… so in this digital age, you need to approach HR for this letter and some companies do not like to disclose their CTC structure outside the company
In case of working in the present company for less than 1 year, then, appointment letter of current company along with the relieving letter of previous company.
Repayment track record for the existing loans, if any, and bank statement from where the EMI(equated Monthly Installment) is debited
Multiple ID proofs required( after a Voter ID card, they will somehow say that the same is not clear or legible so AADHAR card copy would also be required), passport copy, drivers license, etc, etc.
PAN card in any case is required by them for verification, which is not told earlier
Latest CIBIL report in case you have it. which they would counter check. It costs approx. Rs 500 for the same and a waiting time of 1 week.
Proof of 20% contribution to the builder/seller(proof that you have paid the cheque or bank statement is not sufficient) Builders bank statement or Sellers bank statement copy is required so that they can verify that the amount get credited to the sellers account.
Visit by a shabby "address verification" person outsourced to another company who obviously would visit at wrong hours of the day, when you are in office, etc. so you need to keep family members informed. Also the address verification person asks multiple questions and also surprisingly asked to show any family photos.
Visit by the address verification person to the office to ensure that you are physically available in the office as well. If you are on leave you have to take him to the office and enter and exit from there. He also asks land line number and reception number with your telephone extension.
As part of the "technical evaluation" an outsourced company representative came to the house on a Sunday afternoon and took around 10 pics(photos) of the interiors and exteriors of the apartment. He said to would take 5 working days to hand over the info to HDFC. The actual time was approx 15 days with rigorous followups.
After the above verification, the property verification starts in case it is not an approved project, the copy of the sellers sale deed:
Sale agreement between seller and buyer( To be done on the Stamp Paper for the value of 0.1% of the sale value shown in the agreement vizfor RS 50 Lacs property the sale agreement needs to be done on Rs 5000 Stamp Paper.
Sale and construction agreement between seller and builder
Sale deed in seller name
Original Khata certificate
Khata extract in seller name
EC from the date of allotment of flat from developer till date(one day earlier will not do), so basically you need to do it on the day itself before signing the loan agreement, or pay the assistant(HDFC errand boy or who will charge Rs 600 even though the cost of EC for 1 year is Rs 35 or will harass you again and again for some or other paper).
Latest property tax paid receipt for the current year
"No dues" certificate form flat owners association
Sale deed draft
Ready Demand drafts favoring the “Sub-Registrar” showing that you are ready to do the registration.
Cancelled cheque leaf from the sellers account so that they can make a cheque in the sellers name.
Needless to say, most of the papers have to be delivered to the office of HDFC and the boy who initially contacted you for the lead / homeloan will no longer service you once your Processing fee cheque has cleared. He does not get any further benefit to service you as a customer.
The above process goes on for over 2- 3 months even though you had all the papers ready the 1st day itself.
Finally, they will collect copies of all papers that you have, including voter ID, passport copy, AADHAR card, Company I card, Photo credit card copy, multiple photographs.
For address proof, they want: Rental agreement, Post-paid Mobile bill, Bank statement with address printed, passport. In case you do not give them the latest document, you will be sent back to bring the latest one, eg mobile bill should be for the current month NOT 1 month old. All documents must always be with the originals for their verification.
In case the loan process drags on for 1 more month, then you need to upgrade all the verification documents to the latest as per the previous para.
In the meanwhile you will also get numerous calls from HDFC bank or 3 rd party sales agents for personal loan(which they guess you would require for the Demand drafts to the sub-registrar for the Registration and Stamp duty)All original documents of seller to be verified with us after sanction of the loan and before disbursement
In the process, some of the documents become stale e.g. Encumbrance certificate becomes a few days old since the loan process verification, etc. itself has taken approx. 20- 30 days. In that case a new set of papers is asked for and the ball is back again in the persons court who applied for the HOME LOAN / HOUSING LOAN.
MOD( Mortgage charges of 0.1% of the sanctioned loan amount to be paid to government of Karnataka after sanction and before disbursement Demand Draft in favor of " STOCK HOLDING CORPORATION OF INDIA LTD " Value 0.1% of the loan amount applied)
At the end of the whole story you will wonder why exactly you ever approached HDFC for a HOME LOAN / HOUSING LOAN, the answer is that it is your own mistake.
ALWAYS review before approaching the organization, and HDFC is not an investor friendly organization especially because HDFC has NOTHING to do with HDFC BANK!
HDFC is an entirely different entity and no matter how your experience with HDFC bank was, HDFC does not care, as long as their targets of processing fees are met for the quarter.
REMEMBER:
ONCE YOUR PROCESSING FEE CHEQUE IS CLEARED BY HDFC LTD, THE PERSON IS NO LONGER INTERESTED IN WHO YOU ARE. HE WONT EVEN ACCEPT YOUR PHONE CALLS ANY MORE. Also HDFC has what is a “NO REFUND POLICY”.
PROCESSING FEE IS NON-REFUNDABLE BY HDFC LIMITED.
When I was giving the processing fee cheque, that assistant boy was not even interested to see if the application form was filled in. he said the back office staff would check(in any case what does he care as long as a caught another "bakra" with the processing fee, his sales target is adding up, in any case if your application is rejected, you CANNOT get your processing fee back!
This is an issue that has personally had experience with. This is NOT a complaint but just how HDFC works. So better be informed about who your going with and how much you spend.
Off hand, I would suggest going with ICICI BANK HOME LOAN for the simple reason:
Quick and efficient processing
Lowest interest rate and EMI
Transparent processes
Governed by RBI rather than NHB
All the best with your home loan! . BUT definitely NOT with HDFC Ltd.
From personal feedback from few of my colleagues and friends SBI(State Bank of India) is one of the best companies to approach for a home loan or housing loan. You must approach the home loan branch in your city rather than the banking branch that you are used to going. The Home loan branch has a SLA(Service level agreement) of 5 days.
SBI Home loan link is here: https://sbi.co.in/user.htm?action=viewsection&lang=0&id=0, 1, 20, 115
There might be a lot of followup with SBI as well. being a nationalized bank but it will give better peace of mind for many years to come.Please rate if you found this useful or it helped you and add you experience with home loans in the comments section.
Another update is that HDFC Ltd and HDFC Bank Ltd are planning to Merge together to form a large MAFIA together. HDFC LTD no longer needs info from the Bank for historical data of the loan applicant. In a way it is good for HDFC but bad for the customer.
Of late HDFC Bank has seemed to have recruited a large number of "Relationship Managers" also called "Personal bankers" to fool the customer in case he has a large bank balance. A simple way is to induce the customer to buy a bad financial product(like bonds with low rating) where they make a large commission. In fact, HDFC Bank has tied up with HDFC Standard Life which is another thief-like company offering insurance linked with stock-market, at obviously exorbitant rates and low returns.
The BEST option is to ALWAYS GO to a completely Government BANK(NOT semi private bank).
No to finance companies!
No to private banks!
No to HDFC LTD!
. and very soon NO to HDFC BANK Ltd.(HDFC Bank is now a Private Bank held by Foreigners . so called FIIs as far as I know)
Update as on April 2015:
With RBI reducing interest rates on 15th Jan 2015 by 0.25% and 4th Mar 2015 by 0.25% HDFC is reducing interest arte by 0.20% only instead of 0.50%
So not much gain to the retail home loan taker rathen most of the prifit is kept in its own coffers by NOT passing on the complete interest rate reduction to the retail public.
Also new loans on its website show 9.90% interest rate which variable loans are being charges 9.95% interest rate.
Are you still thinking about a housing loan from HDFC? Think twice, the decision is yours.
