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.
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