Wednesday, March 25, 2009

Comparison of Home Loan India- Axis Bank Home Loan Scores Big Over HDFC Home Loan - A Comparison

Comparison of Home Loan India- HDFC has finally reduced the rate as was also predicted in HDFC may reduce PLR by 0.5% in April.

Through a series of posts like
HDFC cheating its customers by not passing the benefit of low interest rates
HDFC Home Loan - Prepayment Penalty increased from 2% to 3% (This appeared in this Blog much earlier than regualr media)

I have tried to voice my opinion on home loan given by HDFC. Also when I took loan from Axis Bank I was so much harassed by their process that I had written a big post on their procedure and mechanism. Axis Bank- UTI Bank- Home Loan- Hidden Charges and Frauds

Almost an year and half down the line, I can categorically say that Axis Bank has scored big over HDFC Home Loan on many parameters. The main are
1) Loan procedure- Bad in Axis Bank as it gets handled by their DSA’s. Good in HDFC as they have their own workforce. When you go to construction site you get to meet the DSA’s of Axis Bank and not their workforce.
2) Customer Service- Very Good in Axis bank. They have replied to all my emails and have sent me requested documents in short period. In HDFC my emails have never been answered and documents have never been mailed when requested through email. Even queries posted in their portal are still unanswered. More humiliating was when their Noida Branch head requested one of the person to travel 50 odd kms to their branch in order to get reversal of Rs. 64/- wrongly charged in his account.
3) Pre Payment Charges- Nil in Axis bank. Yes even if you transfer loan to other bank it is nil. HDFC has recently raised these charges to 3% for transfer to other bank. HDFC Home Loan - Prepayment Penalty increased from 2% to 3%
4) Rate change for new and old customers- There is no concept of new and old in Axis Bank. They change the rate equally for all customers. My rate was from 11% to 10% in 2008. It was again raised to 11% but has been decreased again in line with what they offer to new customer. HDFC on other hand charge different rate not only to new and old customers but also there is difference between old customers too. While I was being charged 11% one of my friends was charged 11.5% during same duration on quarterly basis.
5) Rate reset- This is on monthly basis in Axis bank while it is quarterly basis in HDFC. While this does not make difference but when rate gets low you tend to get the benefit immediately.
6) Portal access – Available in HDFC and not in Axis bank.

As of today I feel more comfortable with Axis bank than HDFC. HDFC has big reputation but its action does not reflect its stature at all. Public Sector Bank like SBI are giving them hard competition.

The above are my own personal views. Since the service varies from person to person based on their history this post in no way claim any recommendation to buy and ignore any of the service. The readers are requested to consult their advisors or take informed decision based on their understanding and experience. I am for now happier with AXIS Bank and thought to give it thumbs up through my post.

Please leave your comments to help me continue post on such issues.

Visit www.mysticmadness.com A Personal Finance and Personality Development Blog.

                                                             

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76 comments:

Anurag sharma said...

I do not personally know about Axis Bank but as per my interaction with my friends/ brother, HDFC is still better than SBI and ICICI. I do manage to get replies to my e-mails fm HDFC. Also we have to see the performance of Axis bnk when the number of customers increase and there is pressure on staff.

anil said...

I agree with the comments. I am having hard time with uthe nethical and unfair practices adopted by HDFC. There are thousands of people suffering like me and we have made a group to fight against this. If you have experienced the same, join us at:

http://in.groups.yahoo.com/group/hdfchomeloancustomers/

chilliflakes01 said...

Dear Anurag,

As stated in my post, the comments were based on my experience. I agree with you that it is better than ICICI, HSBC or even BHW Birla but then I have doubts about SBI.

Your experience must be good and I dont contest that at all. However the way they increase rates and then differentiate between old and new customer is something we have been rasing till now.

Aashish said...

Axis Bank Rocks !!!!

HDFC Sucks :(

Venkata Suneel said...

Chilliflakes - thanks for the article. While i agree with rate reset process with Axis, i am not really satisfied with their customer service.

I stay in US and there is no online access to check my loan account transactions nor about the prepayment charges and other charges.

I mailed them asking this but never received the response. If you know there is way to access online, can you please share with me.

Chilli Flakes said...

Dear venkata,

Axis bank dont provide online account services for home loan. You can contact them at customerservice.racdelhi@axisbank.com or by calling them at 011-23240611-20.

You can mail them as they always reply to the mail (atleast in my case they always do). Since you are outside India, I think you can work out with them on the transaction thing.

Venkata Suneel said...

thanks dude for the quick response. i will check with the customercare.

Just wondering where did you find customerservice.racdelhi email id.

i am looking for hyderabad rac email and i searched the whole website but in vain.

Chilli Flakes said...

not sure. mail the delhi folks.

kits said...

hi Venkata, the e-mail ids for hyderabad customer care are 'rac.hyderabad@axisbank.com' and 'rachyderabad.cccoordinator@axisbank.com'.

I have a home loan account in Raniganj branch and I have been getting quick responses.
for this branch you can mark a Cc to 'Padmasree.K@axisbank.com' as well.

~Ankit

Abhay said...

Is there any yahoo user group for Axis Bank Home loan customer?

Venkata Suneel said...

thanks Ankit for the info.
I mailed Padmasree and got the out of office response.

i will mail again and copy to rachyderabad too.

Raghavan said...

Hi Venkata suneel and chilliflakes,
I live in the US too and i am thinking about applying for a Axis Bank home loan. For me, its important to manage accounts online. My father has a domestic account with Axis and when i log-in, it lists all the existing relationships with the bank, and also others, one of which is home loan account. Since, we do not have a home loan currently when i click on the 'home loan' option, it just says there are no home loan accounts. Are you sure, Axis bank doesnt allow managing home loan accounts online?

chilliflakes01 said...

Raghvan- No they dont have when I enquired it last time. I will do again and update here. HDFC loan account has no advantage because they dont accept emi thorugh transfer. hence it is a reference only. So in effect they are useless from transaction standpoint.

anil said...

The HDFC Home loan customer group has moved to:
http://groups.google.com/group/hdfchomeloan

manzarnama said...

Axis bank has created difference between new and old customers. Old customer pay 10% new customers pay 9.25% from Apr1.

Abhay Das said...

From May 15, 2009 Axis Bank reduced its BPLR by 50 basis point.Axis Bank home loan customers interest rates are linked to MRR. Have they reduced their MRR also?

Anonymous said...

yes, they have changed their policy recently. new customer is 9.25% while old is 10%. hope with current intiative of govt, private banks would also toe the line

George said...

The Bank's website says 9% for below 30 lacs, and 9.5% for above 30 lacs.

http://www.axisbank.com/personal/loans/powerhomes/Home-Loan-Interest-Rates.asp?ucode=Personal&ccode=Loans&pcode=PowerHomes

The last communique that I got from the Bank about my own home loan (above 30 lacs category), was about 4 months ago where they stated it to be 11%. Anyone knows better?

Anonymous said...

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mohit said...

Hi,
I got Home Loan Senction letter from Axis bank and I have paid Processig fees 13000/-, now I got confirmation from HDFC Bank also now I am not able to decide which bank will be good for taking home loan, for HDFC I have to pay 11000/- processing fees, Please guide me I'll go with Axis Bank or select HDFC. both are giving me on Same intrest rate 9%

Chilli Flakes said...

Mohit--As shared in the post, I have Home Loan from both banks and feel Axis is doing much better than HDFC. For Axis you just need to make sure that they dont charge you anything much except the application fee (which i believe you already paid). They used to charge 1% extra (but now i feel it has been waived off---or atleast i got waived off in my case). Axis has not pre-payment penalyty as compared t0 3% in hdfc. Also Axis rate increase or decrease is less agrresive than HDFC.

Only one thing has changed for Axis bank-- their rate moevemnt for existing customer now is no more in line with new customer. Still it is less as compared to other banks.

if possible for you, leave both and opt for Public Sector bank like SBI etc. They got many attractive scheme which these banks cannot even think of.

I jolted everything I knew. I am waiting for possesion on both properties than I am determined to shift these loans to bank like SBI.

Anonymous said...

We are about to take loan from Axis bank. We are looking for 30lakh as loan amount and I was told we will get 8.5 % as ROI. The processing would be .5% + ST(including Equitable Mortgage charges). Only hitch is they are asking for mandatory property insurance which is costing 16545/- for 20 yrs. I have not seen this is being asked by any other Bank/HFC with whom I am enquired so far. Can anyone confirm who have taken loan from Axis bank recently, if this property insurance is mandatory.
Also I am really not sure about the difference they maintain between MRR and ROI. I have searched thru old financial news and found out that even though Axis bank is changing their PLR they are really not changing MRR and ROI is linked to MRR in this case. Can anyone please clarify this.

Venkata Suneel said...

Hi Raghavan,

Thanks for the tip. i just looked online and i see home loan option there but not linked yet. i mailed them to see if they can hook my loan account to sb account in iConnect.

As Chilli flakes said, may be they dont have it yet. lets hear from them.

Muthu said...

Venkat - I have a home loan account in Axis Bank since 2005 and my home loan account is linked to my savings account through iconnect.
You need to send a mail to customer care to link your home loan account to the savings account.
In my case, the EMI is auto debited from my Axis Bank Savings account.
I can view all the details online like the oustanding balance and the last 5 EMI transactions and the account statement can be downloaded from the start date to current date and can be saved in multiple formats.
It is really good. I liked it.

Muthu said...

Since this October 2009, Axis bank is charging me 9.75%, whereas it is 8.75% for a new customer.
But, Axis bank has announced yesterday 5th nov, a interest rate of 8% fixed for the 1st year and 2.75% less than MMR, from the 2nd year onwards and the processing fee is waived off.
Axis bank also maintains at least 1% difference between the new and old customer.
But, in comparison to other morons like HDFC,ICICI, they are far far better, since they at least reduce the interest rate to some extent, when the PLR comes down.

Anonymous said...

Applied to HDFC website for home loan, got a call after 4 days. Tried to know their interest rates through website, no help. The fact of having no prepayment penalty is a bold step - with interest rates of both banks same, i too got with axisbank. So far so good, lets see how the relationship progresses in future.

Venkata Suneel said...

Muthu, thanks for the tip. i mailed them again hoping for some response, so far i had no luck with the iconnect.

Also, can you please tell me where i can look at the interest rates every month to keep track of the current rates. i used to look at apnaloan and am not sure if it is updated every month.

Muthu said...

Hi Venkkat,

I have no idea why you are not able to link your Home loan account with your savings account through iconnect.

Regarding your query about running home loan interest rate for you, there was an entry in the iconnect for your home loan, which will tell the current interest rate in your case, which will vary for others.
Now they stopped providing that info through iconnect.

But you can always send a mail to your RAC and quote your home loan account no and ask for the present interest rate for you.

I always send a mail to hl.blr@axisbank.com once in every 3 months, since it keeps reseting every quarter and my home loan is with Bangalore Axis Bank RAC. Here in bangalore, their response is pretty fast and i usually get the reply by the next day. For this quarter oct-dec 09, my interest rate is 9.5% which was 9.75% during the previous quarter jul-sep 09.

I don't know the mail id of your Axis Bank RAC (Hyderabad).

Try finding out your RAC mail id and send a mail to them quoting your Home Loan Ac. no. Hopefully you will get a faster reply.

Venkata Suneel said...

Hi Muthu,

no luck till now. no response for any of the emails. I better call them and find out if i can link it anyway.

Thanks,
Venkata

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Vishal said...

Hi,

I'm in confusion regarding home loan. Based on your will you please let me know for which Bank (Axis, HDFC, LIC Home finance) I have to go for Home Loan?

Vishal

Muthu said...

Hi Vishal,

As far as service is concerned, i would recommend you to go for Axis Bank, since i dont find any problems with them.

LIC Home Finance is also a good option. But they do charge pre-payment penalty charges and also a portion of the outstanding amount can be pre-payed every year.

Vishal said...

Hi Muthu,

Thanks for Immediate response!

Is this prepayment charges will be more? Because Axis Bank is going to give loan at 8% rate of interest for first year (& thereafter as per market condition)and LIC Home finance at 8.75% for three years.

Muthu said...

Hi Vishal,

AFAIK LIC is charging 2% pre-payment penalty. And only a portion (certain %) of the outstanding loan amount can be pre paid every year.

Pls. refer to the following article.

http://economictimes.indiatimes.com/personal-finance/loan-centre/home-loans/home-loans-news/CCI-frowns-on-loan-prepayment-fines/articleshow/5178550.cms

Vishal said...

Hi Muthu,

Thanks for Your Great Help and Response!

Vishal

Chennai Blogger said...

I guess everyone is same.

Axis bank like government banks you need to personally visit the bank for anything.

The are offereing reduced rates for new loans.

Johnson Chennai

Venkata Suneel said...

Finally i got the loan account hooked to my iConnect after almost 2 months wait.

Thanks Muthu for sharing the info.
i just realized that i dont have the Fund transfer facility (FTF) to my iConnect.

Wonder how long it will take to get it activated.

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harihara said...

do you know what is the maximum period that Axis bank gives to start construction after the approal of loan on land.i m seeing if i can close the loan amount before started constructing in that land

Muthu said...

Hi Harihara,

AFAIK, Axis bank will give a max of 18 months to start the construction, otherwise it will be considered as site purchase loan and they will start charging premium interest rate, since site loan interest is higher than home loan interest rates.

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Vedanta said...

hello everyone i work for a real estate marketing firm and we have client asking for home loans i have personally seen that the performance of axis bank and icici bank is better than many others banks in terms of their coperation and efforts.

regards
Rajesh

Nishit said...

Hi all,
I am planning to take a homeloan but still confuse which bank to choose. my prime objective is to get a good Service later.Oviously ROI & Pre payment charges also play a crucial role here. Till now I have shortlisted these banks.
1. Axis
2. LIC
3. HSBC
4. IDBI
Can anyone please tell me which bank should I opt from these. Also which bank has quickest processing time/

Thanks a lot..

BR
Nishit
+91 9999111638 (Delhi)

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adil saif said...
This comment has been removed by the author.
axis bank cheating home loan customers said...

I have home loan in axis bank, the interest rate is very high. I took the loan in 2008 and i am being charged 12% ROI while a new home loan from axis bank comes at 10.75% ROI. Isn't this cheating............

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Can we transfer funds online to loan account?
I am able to add my loan account to my saving account so just want to know if we can transfer funds to loan account online.

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Can we transfer funds online to loan account?
I am able to add my loan account to my saving account so just want to know if we can transfer funds to loan account online.

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