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 Bank using Customer Retention Strategies

With bad economy, HDFC Bank has come out with well tailored customer retention strategies. Though not known to be as aggressive as ICICI Bank, HDFC Bank has now started to focus more on existing customers. This is done more in order to prevent existing customers from switching accounts. Last morning I got a call from a lady who told me that she has been assigned to my account based on the balance I maintain. So for my account
1) All charges has been waived off
2) Services like locker, de-mat etc would now be charged at 50%. Would let me know in case it can be waived off completely
3) The charges on my debit card have been taken off.
4) Gave her number to contact regarding any service
This happened not only for my high balance account but all 4 accounts which my wife, brother and father maintain. I was particularly moved by the way they waived off all charges and converted my account to a classic account. While they have little relationship with HDFC but they were much ready to discuss the home loan stuff and wanted to help on that front too.
I see this more as a welcome move at the time when finance markets has to get down to the basics i.e. look after their existing customers. I am sure others would now follow suit and ultimate beneficiary would be the customer.
Everyone must recall how last year people shifter tomes of money from private banks to public one’s like SBI. Though too late, these banks have started to reposnse.
Apart from this do read on excellent article on How to Get Rich The Basic Principals of Get Rich Attitude