Let’s start this topic on a positive note. In the real estate market, 3 out of every 10 builders you come across are extremely professional and ethical in all aspects. They will never try to influence your decision on choosing the home loan partner. They will allow you to choose the home loan partner you want.

However, the issue is with the remaining 7 builders of the equation. They are over ambitious by nature.  They will directly or indirectly try to influence your decision on the home loan partner you choose. This is where you need to proceed with caution

Why are these builders so much interested in your loan being taken from ‘A’ bank or from ‘B’ bank and not with ‘C’ bank although you may have personally heard good opinion about the ‘C’ bank?

The reason is simple. There is a vested interest for the builder in pushing you to a bank of his choice and not let you proceed with the bank of your choice.

The builder will be least interested in how the Bank ‘A’ or Bank ‘B’ or the Bank ‘C’ treats your loan account after the loan is taken. They have their own agenda and it may not necessarily match with the well-being of your home loan account in the future.

Imagine a property worth Rs 1 Cr with a loan of Rs 80 lakhs @ 8.5% for a period of 15 years. The total repayment you make not factoring in any pre-payment will be Rs 1.42 Cr approx. Let’s say you pay Rs 15k part payment every month. Even then the total repayment you make is Rs 1.23 Cr approx. The amount you end up repaying is still much more than the property value itself and you may take a lifetime to repay that. Why will you allow the builder or the builder’s salesman to influence you in such a big financial decision of your life?

And as loangebra users you must remember the reasons cited by them to hook you to the bank of their choice.

1) Sir/Ma’am.... “In this bank the customer service is bad whereas in that bank it is very good” (Why is he so much interested in the customer service that you get on your home loan.)

2) Sir/Ma’am.... “The Bank ‘C’ takes more time and that Bank ‘A’ or Bank ‘B’ bank will do it faster. Our management will not wait for more than 30/45 days for the loan to be disbursed. (He and his management often wait for more than 3 to 6 months from walk-in to booking of the apartment by the customer but suddenly the wait period for the loan processing & disbursement comes down. Hmm....Dal mein kuch kala hai!)

3) Sir/Ma’am.... “This bank will come to your house for everything whereas in that bank you will have to go to the bank” (As if it matters for an important decision of a lifetime.)

4) Sir/ Ma’am.... “We have taken a project loan from Bank ‘A’ or HFC ‘B’. It will be very easy if you take the home loan from them.” (Let the project loan taken be from the Bank ‘A’ located in Timbuktu or from a HFC ‘B’ located in Honolulu…. you as a customer can still take a home loan from the bank of your choice.)

5) Sir/ Ma’am.…“Our project is approved by all major banks & HFC’s except Bank ‘C’. We had approached them but they kept asking for many legal documents and they take a lot of time for project approval. So, our management has given up.” (The project approval from Bank ‘C’ will certainly not take more time than what it takes to get the plan approval from BBMP or BDA in Bangalore.)

6) Sir/ Ma’am.... “The Bank ‘A’or HFC ‘B’ is giving a No EMI till possession scheme. Please take the home loan from them.” (Please read about the legitimacy and cost complexity of such schemes in the EMI Options topic of our website in the consulting section before you take the final decision.)

As loangebra users, with all the know-how to deal with these builders at your disposal, you are not going to let them influence you on your home loan decision.