Home Loan Balance transfer Process From Axis Bank To SBI has started

I have finally started my home loan balance transfer process from Axis Bank to State Bank of India. What attracted me towards SBI is the offer they currently have in market. The rate of interest if fixed for first three years and the rate is minimal. On top of that they have option of a MaxGain account which really makes your money earn more than what it normally earns in a fixed deposit or savings account. Though there are many banks like standard chartered, Citibank , hsbc etc. that offer such feature, only difference is that on their overdraft amount they charge more percentage. Additionally rate rise is always high in private sector banks than public.

I personally feel that Axis bank is best choice amongst all private sector banks. I do maintain another home loan from HDFC but Axis bank is way too superior. The customer service of Axis Bank is simply to amazing and it is fun having them as their home loan provider. if they are eager too increase rate they are very quick to decrease it too. But where they fail is offering something innovative like the maxgain in SBI and moderating interest rates. If I would have this product with them, the chances of me switching the account would have been minimum.

Most banks like HDFC, ICICI etc. fail to realize that if they help their customer close their loan soon it will help them only to get new business. Their home loan rate policies and rate increases are so erratic and disturbing that it feels you have become their slave for life. On other end SBI, IDBI etc. banks, mostly public sector, normally don’t act and sound so greedy.

You need to start somewhere in life to make more money and real estate is your best bet. On top of it truth is that it is not possible without taking a home loan. So you need to be diligent about what you buy and from whom you finance it.

In next few posts I will share my experience on home loan and how whole process goes. Till then keep watching this space.                                                              

HDFC has reduced the home loan rate to 10.25% this New Year

After offering 10.5% from 11% In October 2007, HDFC has again reduced the rate to to 10.25% in 3 months. The rate decrease started in last week of december when allottes of Greater Noida BHS-08 scheme was offered 10.35% in order to compete with 10.25% of LIC housing Finance. Intense war is happening between two groups who are the only one offering this option to about 1500 GNIDA allottes.

This is welcome move and has heppend a day ahead of Mr. Chidambaram advice to banks to reduce rate. Hence we can expect some more cut here and other banks to follow suit especially Axis Bank who stays in line with market.

Expect More action here.                                                              

Axis Bank- UTI Bank- Home Loan- Hidden Charges and Frauds

This post is to enlighten people who are about to take home loan for the first time and do not know the intracacies involved in financing.

I had a bitter experience with Axis Bank (formely UTI Bank) but in the process I came to know the nuances involved and how strong reaction/followup can really prevent the dejection on the customer end.

To start with Me and my wife visited a newly launched property in Indirapuram. Axis, HDFC, BoB and ICICI was pre-approved banks. My need was maximum financing of 90%. I was not aware about any charges and hence was curious about knowing from various vendors. All banks except Axis Bank told me that as per RBI Guidelines it would not be possible for them to finance 90% but they can try anywhere above 85% based on profile. Also processing charges was Rs. 5618 and apart from there was absolutely no hidden charges.

An agent from Axis Bank studied my profile and assured me that he would give 90% and Rs. 5618 would be charged as processing charges. I was bit amazed but then with free insurance and other stuff I thought to give Axis Bank a try as they said YES to all my conditions.

2 weeks passed by and one fine day i reeived my sanctioned letter. Two points attracted me to sanction letter. First the max limit approved was about 92% based on my profile (by the way this is the upper cap and not the disbursal amount). Second and most shocking was 1% processing fee which was not told to me earlier. To make the matter worse they encashed my Rs. 5618/- cheque also.

After sanction letter they called me up and told me that they could provide only 89% finance and 1% processing fee is mandatory (which was about 30k in my case).

I took a back seat and said since the retracted on both conditions and hence I am not interested in taking loan. More disheartening was the fact that they had gone back on their commitments and I had no faith left in the bank.

Sensing my hard attitude they asked to agree on 89% and to mention in the sanction letter that Rs. 5618/- would be the charges and I wont pay more than that.

After much persuasion I agreed on 89% and Rs. 5618/-. They made me sign all documents and took all papers.

After a week I got another call and gave me two options

1) Agree on 85% and charges of Rs. 5618/- or
2) Agree on 89% and charges of Rs. 30,000.

I was in trouble as they already taken 30 days of 45 days in which payment has to be deposited with builder and on top of it they were not returning the papers too when I told them that I am not interested.

I raised my voice to all levels and since trust was broken my point was clear" I dont want to deal with Axis Bank". To add an insult to injury they were not returning my paper and kept on delaying it. I was not told whom to contact and they stopped to answer my calls too.

Since it was end of month one fine day they called my up and told me that my loan is approved on 89% and Rs. 5618/- as processing charges at 11%. I said NO and that I am no more interested. My plan was to engage HDFC as I was fed up of people of Axis and from their attitude of keeping people in ransom.

They tried to convince me but I asked them to give my papers. Finally I was asked to collect it from Aruna Asif Ali brach in delhi but when I visited that place at 10 in morning I was told that my loan has already been disbursed.

I objected to sanction and told them to give me back my papers. The co-ordinator told me that loan is disbursed and in order to cancel it I have to pay interest charges. This made me angry and I started to question the bank on almost everything. On other end I was told that DSA involved has declined any sort of conversation and on top of that he is asking me to show up the papers where i has declined the disbursement.

After 4 hours and much I waiting I banged into conference room to talk to their Head (by the way no one from Axis Bank was allowing me to meet him). Head was good enough to give his time immediately. I explained the whole case and the owner of DSA was also called there.

The Head of Retail asset branch at aruna asaf ali branch then studied my case from all scenarios and assured me that nothing will happen from now on. He told me that 89% at 11% charges with Rs. 5618/- is final and that nothing would be asked from now.

Since head was saying that I finally agreed and came back home. But the main point still remains "even though the head of retail asset assured me that processing fee of Rs. 5618/- would be final, it has been 10 days and I have still not recived the same in written format as was agreed by him".

I am not sure of next step but I am prepared to take it to conclusion.

PS.- Names have not been reveled as I strongly believe that its the system which has a problem rather than individual people. People are merely means to a process established by an organization which is Axis Bank in this case.

Leave your comments in case you have doubts.