It appears that HDFC has removed the transaction charge for online payment for EMI.
Please refer my thoughts on transaction fee of Rs. 100 that HDFC had introduced last year.
Has NHB's circular done the trick?
(I bet they will soon introduce some irresistible "schemes" for existing customers who are paying much higher interest rate (apart from the regular loan conversion offers))
But hold on before you jump the guns.
HDFC requires you to register your bank account with them if you want to continue availing the online payment facility. Get the form here.
As expected, HDFC is not aware of the NHB circular dated 19th Oct 2011.
I visited HDFC Baner (Pune) branch today and asked for a foreclosure statement. The lady manager also included 2% prepayment penalty in the letter.
When I protested and showed her the print of the NHB circular, she said it has not reached them yet and I'd have to talk to the manager in the main branch (Pune).
For time being, I have collected the letter which mentions 2% penalty.
I expect all of you to flood HDFC or your HFCs with demands of foreclosure statements so that they understand power of consumers.
I just spoke to Mr. Ranjan Kumar from DRS (Department of Regulation and Supervision), NHB to clarify my doubt.
My question: What if the HFC refuses to provide the benefit of prepayment penalty waiver citing the agreement it has with the existing customer?
Mr. Kumar then clarified that the circular is very much applicable for whoever chooses to prepay/close the home loan (even switchover of bank) anytime after 19th Oct 2011.
So don't worry and free yourself from the jaws of your lender/HFC.
Keep the print of this circular handy!
With reference to my earlier post, I would like to invite a guest reader on this blog and would expect them to write about their experience and the process of home loan switchover; i.e. basically review of the process and all the details.
As a goodwill gesture, I will offer Rs. 1000/- by cheque to the one person who is the first one to do the following things:
1. ..compete the switchover process from one lender to another.
2. ..write detailed review of the process and allow me to post it on my blog as a guest user.
Disclaimer:
1. This is entirely my personal gesture (valid till 30th Nov 2011) and I'm not associated with any bank or HFC.
2. There are no other terms and conditions
NHB, in its latest circular, has ordered that no HFC (housing finance company) should charge any prepayment penalty, that too in any case, for floating loan customers.
I am sure this move will be welcomed by lakhs of home loan customers.
I have a loan with HDFC and the current ROI is 11.50%. If everything goes well, I will soon initiate a process and shift my home loan to a competent HFC or preferably a bank (because of the Base Rate system).
I appeal all of you who have been suffering and ruing their decisions of availing the home loans from their respective HFCs.
Do not forget to post your experiences and the process of the switchover to the new lender.
