Home loan comparision

[godisgood]

Hi

Could some of you please share your experiences about availing a home loan from SBI\HDFC\LICHFL. I am planning to go for a home loan and am confused between these 3 banks. Although SBI seems to have a lower interest rates I have heard that it takes a lot of time to get the loan approved and also that it is very bad experience. I have still not inquired the interest rates from LICHFL. Could you people please help me decide?

[mramki_77]

Select the bank which does not give problems during the long run even if the initial loan processing is longer. Peace of mind for years.

Ram

[godisgood]

Thanks mramki.
I found that SBI is offering loans @10.25% for 30lac but we need to register at agreement value itself or if registering at guidance value loan is given at that value.
HDFC is offering at 10.5% for 30L but we can register at guidance value and loan is given on agreement value. When calculating the difference saved in interest is lost when registering the property at agreement value
Is there any problem with registering at guidance value while taking loan based on agreement value?

[msn1270]

By registering at Agreement Value, you will pay equivalent Stamp Duties+Registration Charges(Additional by few thousands based on plot size). But peace of mind and eligible for higher Home Loan Limit. If you are a salary class person, you enjoy more benefits and no worries about Income as you have already paid your taxes at the source of your earnings.

Registering at Guidance Value is helpful for the greedy Seller to avoid(Cheat the Govt) paying Capital gains Tax on his Profit(On Difference of his purchase value & Selling Value). That additional unregistered value becomes black Money.

This kind of cheating may not continue in longer term, as the Income Tax Department is closely monitoring all the real estate Transactions of value above 30 lakhs and also looking out many new ways to search for Tax evaders.

For Ex. Earlier many companies used to put very high MRP prices on their products and used to sell at lower price by offering huge discounts as popular selling mantra like discounts up to 50%..etc. Recently IT Department initiated new process where they started collecting taxes on the earnings of those companies based on the MRP Price they have tagged to their product instead of selling Price. Slowly many companies phasing out their popular Discount sales as it is hitting their margin as they are paying their Earnings Taxes on the virtual MRP Price even though they are selling their product at very low value.

[Vimal]

And by registering at guidance value, your purchase price becomes lower. When you sell your property many years later, your profit (difference between your purchase price and your selling price) becomes more and you will have to pay higher capital gains tax unless you do the same way of quoting lesser sale price in which case you will create black money for yourself. Essentially, today's illegal gain of the seller (by not paying the required capital gain tax) becomes your tax burden when you sell tommorrow if you stay legit. So explain and ask for a cut from the seller

[godisgood]

So to sum it up it is the same as anything else in life being right now will make life difficult in the short term and easy in the long term and the other way will make life easy now and difficult later

[mramki_77]

Agree with msn. IT department is keeping an eagle's eye on the real estate transactions. I know of few friends who got notices the year that transacted a high value deal. So better to register at market value.

Thanks
Ram

[Anshuraj]

Anyone recently have SBI home loan for construction? Is there any exception to produce bills to SBI?. What I heard SBI is asking bills and no contract will give bills to avoid VAT. Please PM me if any one taken home loan from SBI for house construction

[arjun.surendra04]

Anshuraj,

yes sbi has started asking for bills. But there can be exceptions made. I had to talk to the GM and literally cancelled my home loan at which point they said they can make exception for me. Only some sbi branches are strictly following the RBI guideline. It's a stupid guideline and it penalizes only people who opt for a loan for construction.

So gets things in writing even before you opt for sbi loan for construction. If it doesn't work then hdfc , lic or some other bank will welcome you with open arms