Archive for the ‘Loan’ Category
Tuesday, November 2nd, 2010
Home buyers can now avail only 80 per cent of the value of a house as home loan, when they buy their dream house.This comes after the RBI introduced a ceiling on “loan to value” ratio for home loans. The RBI has also clamped down on teaser home loan rates.
The central bank has said that the loan to value ratio for home loans cannot exceed 80 per cent. The Home buyers will have to pay the 20 per cent of the value of a house as housing loan from their own pocket. The RBI has also said that teaser rate loans present higher risk to banks. The RBI has increased the standard asset provisioning on teaser loans to 2 per cent from 0.4 per cent.
The Reserve Bank of India has sounded a cautious note as far as property prices are concerned. The RBI had noted that residential property prices have been rising in most cities, especially in Delhi and Bangalore.
Now, getting a home loan becomes harder and Home buyers can now avail only 80 per cent as housing loan. They will have to pay the remaining 20 per cent from their own pocket. Till now, new borrowers could avail home loans at lower rates of 8 per cent for a fixed number of years.The RBI has also clamped down on teaser home loan rates and said that teaser rate loans raise concerns as borrowers may not have the ability to service loans.
Source: profit.ndtv.com
Tags: clamped down on teaser home loan rates, Home Loans, Housing India, Loan to Value ratio, RBI introduced a ceiling on home loan, Real Estate India, Reserve Bank of India, Teaser Home Loan
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Tuesday, November 10th, 2009
The country’s largest lender State Bank of India on Friday decided to extend its 8 per cent home loan scheme till March 31, 2010.The decision of the bank would help small home loan receivers.State Bank of India decided to extend its 8 per cent home loan scheme just a day before it was due to expire.
SBI, which offer the special plan under `My Home Campaign` is providing 8 per cent fixed rate of interest for five years for loans amounting Rs 5 lakh, having an upper limit of 10 years. Apart from latest development, SBI is also providing SBI Max Gain, under which it provides home loan as overdraft with saving interest option. Moreover, SBI is also providing SBI Advantage Home Loan carrying a fixed rate of interest of 8% in the initial year and 9% during second and third years.
In the past few days banks like Axis Bank came out with a special 8 per cent scheme for the first year and Bank of Rajasthan too dropped home loan rates to 7.5 per cent w.e.f. from November 9 and Punjab National Bank extended its 8.5 per cent scheme till December 31. SBI’s aggression may also force bigger private sector players to re-look at their strategy.
Links to Refer:
www.commonfloor.com/articles/category/property-buying/home-loan
Tags: Bangalore, Home Loans, loans, property buying, real estate, SBI, SBI Home Loan, special plan, state bank of india
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Friday, August 14th, 2009
Housing finance major HDFC offers loans between Rs 30 to 50 lakhs at 9 per cent. HDFC has upped the ante for market share in the home loan market by reducing rates by 50 basis points.
The development comes within a week of the country’s biggest bank SBI cutting rates by 50-75 bps for high-value loans and offering loans up to Rs 5 lakh at 8% fixed rate for five years.
As per the revised rate, loans between Rs 30 to 50 lakhs will be offered by HDFC at 9 per cent. As the lender has not revised its prime lending rate, the rate will apply only for new customers.
Several public sector lending institutions such as Canara Bank, SBI and LIC Housing Finance have unveiled competitive schemes to attract home loan seekers. HDFC now wants to take advantage of the festival season spike in business.
Reference
HDFC cuts rate to 9% for Rs 30-50 lakh loan
Tags: cut down, HDFC, Home Loans, Housing, indian real estate, market trend, property, Real Estate India
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Wednesday, July 1st, 2009
State Bank of India has launched new scheme which assures lowest interest rate in home loan market for first three years. SBI launched SBI easy loan and SBI Advantage home loan. SBI Easy home loan is for amount up to Rs 30 lakh and SBI Advantage home loan is for amount above Rs 30 lakh and will carry special rate of 8 per cent for first one year.
State Bank of India country’s largest lender cuts home loan rates for first three years. The loan rate will be fixed at 8 per cent for first year, in second and third year there will be increased 100 basic points to 9 per cent. Under SBI Easy loan, rate is fixed for low rate for first three years and from fourth years onwards, customers can choose either floating rate 2 per cent below the State Bank Advance Rate (SBAR) or fixed rate 1 per cent below SBAR with a five year reset. Under SBI Advantage home loan, interest rate for second and third year is fixed at 9.5 per cent. From fourth year onwards, customer can either choose floating rate 1 per cent below the SBAR or fixed rate 0.5 per cent below SBAR with a five year reset.
The special rate for home loan fixed by SBI could spark a rate war in the highly competitive home loan rate. HDFC stands second in charging lowest rate for home loan. HDFC charge 9.25 per cent for home loans up to 30 lakh and 9.75 per cent for loans above 30 lakhs. Borrowers can get best from this competition and SBI move to lower the loan rate could spark rate war with leading lenders in home loan market.
Reference:
Tags: Bangalore, cut down, Home Loan Market, Home Loan Rates, Home Loans, Housing, Housing India, indian real estate, rate war, Real Estate India, SBI Home Loan
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Tuesday, June 30th, 2009
New Happy Home Loan is scheme for Home Loan by State Bank of India. Disbursement of home loan under this scheme has grown at Rs 1500 crore a month. Since the scheme was announced bank had monthly disbursement of Rs 1100 crore in first two month and current growth is Rs 400 crore more than earlier.
Till March Bank had sanctioned Rs 2,348 crore. Subsequently bank is sanctioning Rs 1500 crore every month under “New Happy Home Loan” scheme. SBI had announced 8 per cent home loan for first one year in the first week of February. In second year rate will be applicable with prevailing rate.
The rate was lowest so far in the industry and the bank’s move was to stimulate demand for home loan when home buyers postpone their purchasing decisions and economic uncertainty. The scheme has been extended till September.
SBI claims to have highest growth in last fiscal in its home loan portfolio. In the same period bank market grew to 19.74 per cent from earlier market of 17.48 percent. There was 21 per cent increase last fiscal of Rs 54,063 from Rs 44, 626 in previous fiscal. Bank offers various other schemes which will be valid till the month end. One of the schemes is 9.25 per cent fixed interest for five years on home loans between Rs 5 lakh and 20 lakh. Interest rate will be reset every five years from the date of disbursement of first installment. The rate was 8.5 per cent fixed for every five years on home loans less than Rs 5 lakhs and rate will be reset every five years from the date of disbursement of first installment.
Links to refer:
Tags: Apartment, Bangalore, Home Loans, Housing, Housing India, indian real estate, market trend, property, Real Estate India
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Thursday, June 25th, 2009
The demand for loans will increase and loans to become cheaper for borrowers. SBI announced revised Benchmark Prime Lending Rate (BPLR) down by 50 basis points effective from June 29, 2009. SBI country’s largest lender slashed its BPLR to 11.75 per cent.
SBI reduced its BPLR in January 1, 2009 by 75 points and currently BPLR stands at 12.25 per cent. Decision of SBI will influence other lender to cut down their rate and home loans, car loans and other loans to become cheaper for borrowers.
SBI had reduced deposit rate by 25 points across all maturities to bring down the cost of funds. SBI rate cut comes within a fortnight of Finance Minister asking state owned banks to soften rates.
The rate of deposit for 1000 days tenure was reduced from 7.75 to 7.50 per cent, for deposit 2 years or less than 1000 days the rate was cut from 7.50 to 7.25 per cent. The rate for deposit from 1 year to less than 2 years was reduced from 7.25 to 7 per cent and the deposit for tenure of 181 days and less than one year the rate is 6.25 against 6.50 per cent.
SBI informed the Bombay Stock Exchange, BPLR was revised down 50 basis points and this will be effect from June 29. The new rate for BPLR will be 11.75 per cent against current rate of 12.25 per cent.
Reference:
Tags: Home Loans, Housing, Housing India, indian real estate, loans, market trend, property, Real Estate India, SBI
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Saturday, June 13th, 2009
Union Finance minister exhorted public sector banks to cut down interest rate for home loan, retail loans and industrial lending to boost the economy.
If public sector cut interest rate, loans and industrial lending may become cheaper. SBI chairman after meeting with government told the news and media that bank would take decision on government suggestion by the end of the month. If SBI country’s largest bank takes step to reduce other public sector banks will also follow suit. Canara bank and Corporation bank echoed the statement of finance minister.
Current loan rate for home loan range from 8 to 9 percent up to Rs 20lakhs, Loan rate for car loan range from 10 to 11.5 percent and public sector charge 12 to 13 percent on industrial borrowing. Bank charges lesser interest rate depending on borrowers’ credit worthiness.
Prime Lending Rate (PLR) stands in the range of 12 to 13.25%. If bank brings down the rate by 50 basis points, lending rate of all sort of borrowing will come down by 0.5%.The second largest PSU, PNB however said the current rate they offer is lowest in the market. Analyst feel there is space for commercial banks to reduce the lending rates in the range of 50 and 75 basis points.
If the banks cut down their interest rate, home loan and retail loans will become cheaper. Analyst says bank will soften lending rate further, resulting cheaper loans and industrial lending.
Links to Refer
www.deccanherald.com
www.thehindubusinessline.com
Tags: Apartment, Apartment India, Bangalore, Home loan insurance, Home Loans, Housing India, indian real estate, market trend, property, Real Estate India, recession, Tips
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Wednesday, June 10th, 2009
SBI life insurance ties up with syndicate bank offering its customers insurance cover on the home loan. This scheme can be enjoyed by the borrowers of syndicate bank home loan who has availed loan under special scheme announced by the Indian Bankers Association and government of India.
The scheme would be effective up to end of this June. The insurance covered is not home but for home loan which will cover borrowers’ family from the outstanding loan. The insurance cover for home loan ensures retention of property in case of unforeseen incident.
The housing loan cover, premium which does not charge any documentation charge from the borrower and premium of which will be borne by bank. SBI life insurance is joint venture of BNP Paribas and SBI.
SBI life insurance MD and CEO, U S Roy said that tie up with syndicate bank would further enhance accessibility of home loan protection products covering the family of borrows and ensures retention of property.
Links to Refer
www.expressestates.in
Easy personal loan
Tags: Apartment India, Bangalore, Home loan insurance, Home Loans, Real Estate India
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Friday, June 5th, 2009
Green building is not only environmental friendly but also offers you lower rate on your home loan. Home buyers are very happy with cut down in stamp duty, rate of interest and now here is another reason. Banks such as State Bank of India are offering lower loan rate for green building.
There is an increase in demand for green building and SBI encourage this by attracting buyers with special rate for green building. Normally SBI charges 8 to 9.25% for normal home loan and rate is 0.10% or 10 basis points lesser for green building comparing to other.
According to Indian Green Building Council (IGBC), green building is construction that consumes less energy, water and natural resources. When comparing to ordinary building, green building consumes less energy, creates less waste and healthy for people and environment. Indian Green Building Council (IGBC) is a part of CII-Godrej Green Business Centre, which is actively involved in promoting the Green Building movement in India. It is represented by all stakeholders of construction industry.
In future more banks will come with innovative ideas to save environment and directly or indirectly encourage buyers to construct green building. Celebration of environmental day and conducting awareness program has played vital role in educating common man on need and importance of green living or environmental friendly life.
Tags: Apartment India, Bangalore, green building, Home Loans, indian real estate, market trend, property, Tips
Posted in Loan | 2 Comments »
Wednesday, April 22nd, 2009
Lowered Home loan rates
The Union government is pushing state-owned banks to offer interest rates on housing loans up to Rs 20 lakh at pre-2004 levels. Now consumer can get home loan at low interest.This means consumers could get home loans at 7 to 8 per cent, 2 or 3 percentage points lower than the current market rate of 9.5 to 10.5 per cent. Public sector bankers indicated that they have received signals to lower pricing of home loans up to Rs 20 lakh.
Finance Secretary Arun Ramanathan is likely to meet some public sector bank chiefs for an action plan. The contours of the package are likely to be ready early next week. Apart from taking a direct hit in the form of an interest subsidy, the government is looking at bridging the cost of this scheme, the difference between the rate at which the loan is offered and the market rate, through refinancing from the Reserve Bank of India (RBI). By this move, home loans up to Rs 5 lakh may attract interest of around 7 per cent and those above Rs 5 lakh and up to Rs 20 lakh around 8 per cent, sources said. With interest subvention, the actual interest realization for banks may be around 10 per cent. So far, state-owned banks have reduced interest rates from as high as 11 to 12 per cent to 9.5 to 10 per cent. Deposit rates may fall further after RBI’s recent rate cuts. The average cost of funds for banks is 6 per cent now.
Links to follow:
Govt banks lower home loan rates
Urban development ministry seeks lower home loan rates
Easy Bank Loan
Tags: Home Loans
Posted in Apartment Buying, Loan | 2 Comments »
