Housing loan is considered as primary sector by Govt. But some hidden traps lies on your way. Most people are not aware of it.You can take housing loan from banks or housing finance companies(HFC). My advice to loan borrowers to approach banks for housing loan. Never take housing loan from housing finance companies like HDFC. Govt has given long rope to HFCs to fix any charges and penal interest even if you default 1 EMI. HFCs are not under bank ombudsman and there is nobody to approach to grievance redressal.They are enjoining the total freedom and they will not even give you a statement for mounting of the charges.Housing loan comes under Govts primary sector and I can not understand why the govt is not regulating HFCs.Under floating interest rate you may get loan on competitive rate to attract the customers, but after 1 or 2 years they will fix a rate according to their convenience and you cannot question it under any circumstances. in a 15 year term you may face some financial crisis at any point of time abd default 3 or 4 EMIs.And you will start getting phone calls, remind letters, almost every day ,legal notices and every thing is charged on your account. A letter may cost Rs 50 or more.Charges are most profitable business for them they will really enjoy it!.If you have defaulted so to say a 50000 rupees and charges will be Rs 75000 in a short time and you realise things going out of control. The tragedy is that you have no right to question it and no place to complain.
If all these criteria were followed by banks how they are not able to recover the loan paid to Kingfisher?? Such rules are meant for commonmen and banks deviate from this in the case of influential/money/muscle power people.
