I want to take a fixed rate home loan from HDFC. They have quoted 12.2% interest whereas the floating rate is 10.5%. They quoted this as true fixed rate through out the entire tenure. Could you please share me anyone's experience with HDFC true fixed rate home loan.
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This story is very useful not only for those who have been paying their home loan debts but also for those who wish to take home loan in future. Though, i am not taking any loan now, but the information was very useful as i may impart it to many of my friends who may seek a loan.
as some other readers have said, banks and finance cos. do hide from the consumer whether they are offering him a true-fixed interest loan or a semi-fixed interest loan. i also took a so-called fixed-interest home loan from a pvt. housing finance company a couple of yrs back and they never revealed whether the interest was truly-fixed or semi-fixed. they did not even explain the difference or offer me the option to go in for a true-fixed interest loan at a premium. at that time i came away feeling that i had gotten a good deal by paying a small premiun on the interest rate for my peace of mind for the entire tenure of the loan. but today when i understand these nuances, i am not so complacent. and to think that i did business with one of the most reputed housing finance companies in india. i guess sales people, whether they are selling homeloans, washing machines or toilet paper, can never really be trusted.
I have found that banks are not forthcoming in classifying the fixed loan, as semi-fixed or fixed loan.
I had opted for a fixed rate loan 2 years back and had narrowed down with one of the leading Indian private bank. However, when I read the Home Loan agreement, I hit upon the clause which vaguely stated that the fixed rate loan can be changed at the bank discretion under certain cicumstances. I contacted the bank official to specifically mention those circumstancesand they did not mention anything. Worse of all, the bank representative never told me that their fixed rate was in fact semi-fixed.
The message is that if you are taking home loan be sure to read all the clauses of the agreement carefully. I am happy that I did that, as I switch to another bank, that was offering "true" fixed rate.
This is one of the most objective articles on home loan. Non Transparency of base rate in floating rate of home loan in banks like ICICI is one big issue. Kudos to the author.
