The original project of HDFC was like DDA in Delhi and PUDA in Chandigarh and if you purachse a flat from a private contarctor and out of a house loan you are bearing theprofir of the contarctor as well as paying interst @ approx 10%.. The governement can directly be into construction But I was not happy about DDA flats but thsoe in Chandigarh also werenot of that good quality.. There should be a through check of material used.. In case you want good qaulity housus then contact private flats.. Thelife of a private flat will be 3 times more that DDA flat.. IS IT SO ?? That is I saw poor quality ceemnt used in Delhi flats.. They must have become old.. In my personal house also the cemnt was not good and chuna lagya tha and neighbours made good quality houses.. Regards Mahesh nayathil http://www.maheshnbiomedical.com
I am a salaried employee in the highest tax bracket with very good credit history. I booked a property and got a discounted rate on condition that the full disbursement would be made within December. I applied for loan in November at a government bank. They promised quick action but were painfully slow in processing. Finally I got the loan sanction letter in first week of January. Just after I signed all documents and sent them, they announced that there is a hike in r/i and a new sanction letter will be issued. I agreed to that too. But now they are asking for a undated blank check as security, apart from seventeen EMI checks. This inspite of the fact that the property is under mortgage with the bank. My question:
1) Can a bank ask for a undated, blank check? Is it a common practice? The mention of the blank check is nowhere in the loan documents that I have signed. The demand has been made verbally, but they won't disburse the amount till they get this check.
2) What options do I have at this stage, because it is already late by more than a month and going to another bank will again take a lot of time.
I think you have raised a very pertinent issue. In this regard, please go through the sanction letter issued to you, which usually contains terms and conditions of sanction. Is it mentioned there that you have to give undated blank cheque. If so and if you have agreed to it then I guess you have no alternative. Other wise if they are orally asking for it, in my view you have following options of recourse:
a) Write a strong letter to bank addressing top management and demanding immediate disbursement and threatening legal action if no action is taken immediately.
b) If nothing happens Immediately file a complaint with Banking Ombudsman for withholding disbursement despite complying with all the terms of sanction and causing financial loss to you; c)Approach some consumer rights organization for necessary guidance d) Go to some other bank
To the best of my knowledge, banks cannot demand undated, blank cheques under limitation act. So it is likely that the bank cannot demand the same in writing. Instruments like undated blank cheques are called Inchoate Instruments in legal parlance and a person who puts an inchoate instrument in circulation must be taken to have authorized what ever is subsequently inserted in it in order to make it a complete instrument. So, if you sign a blank cheque you are giving unlimited powers to your banker. You would also be facing the risk of some employee of the bank misusing the same for personal gain;
Earlier only certain private banks used to resort to such things. Now I guess even nationalized banks have begun this practice. In my view asking for undated blank cheque is quite unnecessary as you will have already singed a Demand Promissory Note which is quite sufficient for their purpose. I think people are blindly signing anything just to get a loan, it is high time some one starts questioning such practices.
RE:RE:Home loan nightmare
by uran chandi on Feb 03, 2007 12:30 PM Permalink
Hello Sowmya,
Thanks for taking the time to reply in such details. It was very helpful. Thanks, truly appreciate.
The bank has now agreed to 5 years of postdated EMI checks in place of the blank checks. There are still a few small hurdles. Hope we will be able to pull it off.
We would like to purchase a flat taking home loan. We have 17 lakh in hand.If we opt for 1BHK then will have to take nearly 10 lakh home loan and for 2BHK its double. After paying 20k EMI we can still save 1.5 lakh per year(2BHK) and 3.5 lakh if we go for 1BHK. Please advice is it sensible to take 2BHK now or should we buy 2BHK after 5 years down the line, saving a good amount ?
RE:Home Loan
by Niraj Dayal on Jan 31, 2007 06:36 PM Permalink
Always remember that real estate is becoming dearer by the day and more delay you do, farther u r going to get. So the best time is now. Also instead of putting all amount into one property u can buy two of 1BHK which will give you better return in case u decide to sell.
Is there a fixed rate homeloan at present offered by any bank for the entire tenure. Some recommend a bank with a transparent loan. Even a fixed rate is subject to a review if there is a hidden clause on this point. Can someone throw light?
RE:Best bank for a homeloan
by Abhay Asthana on Jan 31, 2007 06:09 PM Permalink
There is no such bank that offers a fixed interest rate for the entire tenure of the loan. There's a reset clause which allows a bank to increase the fixed interest rate after a particular period or in case of a general increase in the overall interest rates.
RE:Best bank for a homeloan
by Abhay Asthana on Jan 31, 2007 06:04 PM Permalink
There is no such bank that offers a fixed interest rate for the entire tenure of the loan. There's a reset clause which allows a bank to increase the fixed interest rate after a particular period or in case of a general increase in the overall interest rates.
RE:Best bank for a homeloan
by Abhay Asthana on Jan 31, 2007 06:13 PM Permalink
There is no such bank that offers a fixed interest rate for the entire tenure of the loan. There's a reset clause which allows a bank to increase the fixed interest rate after a particular period or in case of a general increase in the overall interest rates.
RE:Best bank for a homeloan
by Abhay Asthana on Jan 31, 2007 06:04 PM Permalink
There is no such bank that offers a fixed interest rate for the entire tenure of the loan. There's a reset clause which allows a bank to increase the fixed interest rate after a particular period or in case of a general increase in the overall interest rates.
RE:Best bank for a homeloan
by Abhay Asthana on Jan 31, 2007 06:18 PM Permalink
There is no such bank that offers a fixed interest rate for the entire tenure of the loan. There's a reset clause which allows a bank to increase the fixed interest rate after a particular period or in case of a general increase in the overall interest rates.
RE:Best bank for a homeloan
by Abhay Asthana on Jan 31, 2007 06:08 PM Permalink
There is no such bank that offers a fixed interest rate for the entire tenure of the loan. There's a reset clause which allows a bank to increase the fixed interest rate after a particular period or in case of a general increase in the overall interest rates.
RE:Best bank for a homeloan
by Abhay Asthana on Jan 31, 2007 06:08 PM Permalink
There is no such bank that offers a fixed interest rate for the entire tenure of the loan. There's a reset clause which allows a bank to increase the fixed interest rate after a particular period or in case of a general increase in the overall interest rates.
RE:Best bank for a homeloan
by Abhay Asthana on Jan 31, 2007 06:06 PM Permalink
There is no such bank that offers a fixed interest rate for the entire tenure of the loan. There's a reset clause which allows a bank to increase the fixed interest rate after a particular period or in case of a general increase in the overall interest rates.
RE:Best bank for a homeloan
by Abhay Asthana on Jan 31, 2007 06:08 PM Permalink
There is no such bank that offers a fixed interest rate for the entire tenure of the loan. There's a reset clause which allows a bank to increase the fixed interest rate after a particular period or in case of a general increase in the overall interest rates.
RE:Sachin...Sachin ...and Sachin
by raman gurumurthy on Jan 31, 2007 06:17 PM Permalink
no dear, what is the price being paid?, when compare to contemporary circketers in the globe. champions r to perform every time and any time pls do not try to gain more out of latest outing
RE:Best bank for a homeloan
by Abhay Asthana on Jan 31, 2007 06:07 PM Permalink
There is no such bank that offers a fixed interest rate for the entire tenure of the loan. There's a reset clause which allows a bank to increase the fixed interest rate after a particular period or in case of a general increase in the overall interest rates.
