Jun 30, 2013 06:23 PM
8752 Views
(Updated Jun 30, 2013 06:22 PM)
I decided to purchase a flat which my friend was selling in Bangalore. After hearing so much from my friends & relatives, I thought I will go for a public sector bank for the following reasons
No hidden Charges
Rate of interest reduction is passed on to existing customers
No prepayment penalty charges
I had 840 points in CIBIL rating, so getting a loan from public sector bank was not a daunting task.
I wanted to go with SBI, found that getting a loan from them is very difficult, then I did apply on IDBI's site, which had some good reviews.
I was contacted by Koramanagla Branch, the person's name was Mr.Ganesh, who did the preliminary call and the things fell in place very soon. In fact they were very helpful. The process was a bit tedious as my previous owner had his own home loan and documents were with HDFC bank.
They asked me to create a SB account with the IDBI bank, so that EMI can be processed. They also said the property insurance is mandatory(it cost me 13K one time), and recommended some personal insurance as well, which I refused.
I had a couple of bad experience in the process, not by the officials, but the guy who collected the forms demanded 4K as a stamping charges(which I told the officials(Mr.Dhirendra), who intervened), whereas it was less than 1K. He said that his company lawyer can help in the registration for a fee of 18K, while we got it done for 6K.
And while registration, they had sent one lawyer to represent them in the whole process. We had already picked up a agency which will do the entire documentation and registration in Kengeri. The lawyer behaved so weirdly he asked why can't we go to Jayanagar for the Registration!
I was surprised by the way he behaved, he was late more than 2 hours and finally was shouting at us as he said he had some work in the afternoon. I got wild after hearing that. He was not there during the registration, but after that he expected to be paid for his service. By the way he had behaved, I had a mind to abuse him, I told him that I had paid close to 13K to bank for this. I kept cool and called the bank on that. The bank official asked me not to pay, it is treated as bribe, and I have no reason to bribe the bank official.
Apart from the above the rest were good, the rate of interest was 10.5% when I started(Nov 2012), but it was reduced to 10.25% in Feb 2013.
Their web interface is quite good, I had taken 20.75L as a loan, I had prepaid 5.2L this month, which they reduced directly from the principal.
I would certainly recommend this bank.