hookahbar said:
Hi All
I need little help. When we sent the application we made an FD with certain bank n sent the details.
Now we have an offer from other bank where we approached for home loan that if v keep the FD Wwith them they r giving us concession on int rate which is good n also insurance.
V r keen on taking this home loan so can v just close that account n create a new account with this bank n update delhi visa office about it or will there b any problem???
It is a loan against FD and your FD is being kept as security deposit. More so, I do not think you are getting any concession on interest rate; they are simply subtracting your interest on FD from interest on home loan. That's a mathematical gimmick. (but math is never a gimmick, it's pure logic. How? read below)
Ex;
a) Interest u'll get on your FD = 7 ~ 8.5%
b) Interest u'll pay on home loan = 10.5 ~ 12%
So, you get home loan @ b) - a) which you see as concession.
It is just like taking loan from your own PPF. You won't get interest no your withdrawn money so which also becomes your rate of interest for the loan. As simple as that.
And even in this scheme bank will be more beneficial than you think u'll be. Banks are clever mathematicians; they put up such complicated mathematics customers never come to realize whether they earned or payed additional interest which they weren't supposed to!!!
In general, you can withdraw and open other accounts from which you can show your updated funds when VO asks for fresh bank letters but remember, the account should hold money for a reasonable amount of time.
