Banks rush to provide loan for DDA Flats Registration

SBI Offers lowest Interest Charge for financing DDA Flats

As the last date for submitting the application form for DDA flats is approaching near, the War has begun. Almost all Banks have jumped the bandwagon to offer loans for financing the registration amount of Rs. 1.5 Lacs for the DDA flats offered under the DDA Housing Scheme'08. State Bank of India has come to the forefront by offering the cheapest loan for application money. Interest rates offered by banks for the DDA Housing scheme varies from Bank to Bank and hence investors should be compare these before approaching the nearest branch for a loan. Currently SBI is the best option for availing the loan as it is charging Rs. 5,050 towards interest and processing charges against Rs. 6600 charged by private banks.

One should go to the Public Sector banks to avail the loan for DDA flats as they are charging less interest rates as compared to the Private Banks. Private players like HDFC, ICICI Bank, IDBI Bank and others  are charging Rs. 6,600 as Interest charge and processing fee.  Union Bank of India is charging Rs. 5,700 while Central bank of India is charging Rs.5,680.

Interest Rates charged by Banks on Loan for  DDA Flats Registration

Bank	Interest & Processing Charges
State Bank of India	Rs. 5,050
Central Bank of India	Rs. 5,680
Union Bank of India	Rs. 5,700
HDFC Bank	Rs. 6,600
ICICI Bank	Rs. 6,600
IDBI Bank	Rs. 6,600

 

Important point to Note while availing Loan for DDA Flats

While the whole idea of getting the deal financed through bank for the Registration amount may sound appealing, there is an important rider which the applicants should keep in mind. The Interest charges mentioned above are for a period of Three Months. If DDA fails to conduct the selection process within three months and delays the lottery date, the applicants would have to cough up interest charges for the further period which may range anywhere in the range of 11-14% depending on bank to bank. Applicants should keep this in kind while applying for a loan.