Posts Tagged ‘Home Loans’
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
Posted in Loan, News | 1 Comment »
Monday, May 24th, 2010
The existing borrowers can cheer now, as under the ‘base rate’ regime, to be effective from July 1, 2010. It is reported that the Reserve Bank of India, in its guidelines on the ‘base rate’ (the new benchmark that banks will use to price loans), has made it clear that any change in the base rate will apply to new as well as old customers. If you thinking of shifting your home loan account to another bank/HFC. Hold on till July 2010, when the ‘base rate’ regime starts and you may get an opportunity to shift to the ‘base rate’ without spending any amount. It is hoped that the ‘base rate’ system will enhance transparency in lending rates and usher a new beginning in the financial system of the country.
One of the major grouses of existing home loan borrowers is that they continue to pay higher interest, while banks and Home Finance Companies (HFCs) are offering much lower interest rates to new customers. The existing borrowers can cheer now, things are expected to change for the better. The ‘base rate’ system would be applicable to all banks and as such the housing finance regulator (National Housing Bank) may issue separate guidelines for home finance companies (HFCs) to ensure transparency in fixing interest rates on home loans.
Under the
‘base rate’ regime, the best part is banks will not be allowed to offer loans at interest less than the base rate fixed, which will have to be reviewed at least once in a quarter. For existing borrowers, banks will have to provide an option to switch over to the new system before the expiry of the existing contracts, on mutually agreed terms. However the
RBI has made it clear that the bank cannot charge any switch-over fee for converting an existing loan from BPLR to the ‘base rate’ system.The ‘base rate’ may vary from one bank to another as RBI has allowed banks to choose any benchmark to arrive at the base rate for different loans, but the factors considered to arrive at the rate will have to be transparent and should be disclosed to the public.
Source: The Hindu
Tags: base rate, base rate regime, BPLR, Change in the base rate, HFCs, Home Finance Companies, Home Loans, rbi
Posted in News | No Comments »
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
Posted in Loan, News | No Comments »
Tuesday, September 29th, 2009
The BBMP has tied up with some nationalized banks to fund the regularization penalty amount with the same property as guarantee. In fact, the last time when Akrama-Sakrama was announced and BBMP started collecting applications, many owners availed of this loan. But the BBMP stopped the process midway when the scheme was delayed by the new BJP government. After realizing that the notification of rules would get delayed, BBMP passed a resolution to refund the money.
More than 3 lakh property owners in Bangalore alone will now have to plan their investment better to get a clean chit for their properties. The penalty rates, which run into thousands and lakhs of rupees, will definitely pinch the pockets of the middle class. The BBMP has tied up with some nationalized banks to meet this expenditure with bank loan.
It’s also good business for banks as a majority will apply for the loan. And for owners, the loan will not be a big burden. Also, the same customers may get back to the bank for home loans in future when they construct after the regularization. The arrangement is such that banks, after processing documents, will present a cheque directly to BBMP for the amount. The rate of interest is as per the prevailing home loan interest.
Nationalized banks to chip in for Akrama-Sakrama Loans. The rate of interest is as per the prevailing home loan interest. After processing documents and calculating regularization amount, bank will directly pay to BBMP through cheque. If regularization is rejected for that property, the cheque will be returned to the bank.
Reference:
Bank loans for penalty amount
Tags: akrama-sakrama loan, Akrama-Sakrama scheme, Apartment, Bangalore, bbmp bangalore, guidelines, Home Loans, Housing India, indian real estate, nationalized banks, property, Real Estate India, regularization of unauthorized property, sakrama loans, Tips
Posted in Bangalore | 2 Comments »
Thursday, August 20th, 2009
Real estate sector always come up with innovative way to secure your investment. Buying a home is dream of common man and affordable housing has made dream come true. “Affordable housing” is a term used to describe dwelling units whose total housing costs are deemed “affordable” to those that have a median income.
Affordable housing denotes the basic human need for a comfortable home that offers value for money and cost is relative to the amount that the buyer can afford. Experts here suggest that homes costing no more than five times the buyer’s annual income can be considered affordable.
According to a Planning Commission Report, the urban housing shortage as in March 2007 was around 24.71 million and it will increase to 26.5 million by 2012. Ninety-nine per cent of this shortfall in housing is with regard to Economically Weaker Sections (EWS) and Low-Income Groups (LIG) which contributes to squatting and slum formation. Apart from the existing shortfall, the increasing urban population, which is expected to reach 576 million in 2030 from the current figure of 328 million, will add to the affordable housing demand.
Some developers have either shifted to affordable home projects or made some change in project to make their existing project fit for affordable home. If you already own a house, investing in a second property may not be a bad idea. You can get tax benefit on your second home. Buy a second house that meets your needs, available finances and lifestyle. The economic slowdown is proving to be a blessing in disguise for the common man, especially as far as housing is concerned.
Lower interest rate, construction cost and easy home loan makes investing or buying affordable home easy.The future of affordable housing for the next few years to come is indeed bright. Energies of all stakeholders are focused in the right direction to meet a common goal. Public-private partnerships will be a vital tool and the way forward to address affordable housing.
Tags: affordable home, Apartment, apartment buy-sell, Apartment India, Bangalore, Bangalore East, cut down, Home Loans, Housing, Housing India, indian real estate, market trend, property, Real Estate India, recession, Second homes
Posted in Apartment Buying | 1 Comment »
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
Posted in Loan | No Comments »
Monday, August 10th, 2009
Green building is a concept fast-catching the fancy of people all over the world. Demand for green building materials and equipments are increasing day by day. A green building is one which is energy efficient, uses natural and renewable energy and causes the least amount of damage to the environment.
In India, Indian Green Building Council (IGBC) Green Homes is the first rating program developed exclusively for the residential sector. Indian Green Building Council (IGBC) is a part of CII-Godrej Green Business Centre, which is actively involved in promoting the GreenBuilding movement in India.
IGBC estimates the demand for green building materials and equipment will reach USD 4 billion per annum by 2010. In tune with the global trend to protect the environment, the number of green building projects in India may go up from the current 164 to over 2,000 by 2012.
Some of the features of green buildings are heat reduction insulated roofs and walls that substantially reduce heat ingress (up to 60 percent) thereby resulting in lower AC loads, cross ventilation with fresh breeze, low energy costs (up to 40 percent), and 100 percent natural light all across, thereby cutting down usage of artificial light by 50 percent. You can enjoy healthy living with innovative solid waste management, waste segregation system and nature-friendly infrastructure.
The biggest advantage is, the well designed green building may accrue life-long benefits at small make-up costs and reduction in water and operating energy costs. Generally, the cost difference while raising a green building is approximately between five and eight percent more than a conventional building, but the investor recovers costs within three years.
Green building not only offers healthy environment but also helps to save energy and water. If you are planning to buy an apartment or home, green building enables you to save cost of construction and you can enjoy healthy living with innovative solid waste management, waste segregation system and nature-friendly infrastructure.
Tags: Apartment, Apartment India, Bangalore, Buying, green, green building, home, Home Loans, indian real estate, market trend, property, Real Estate India, Tips
Posted in Apartment Buying | No Comments »
Saturday, August 1st, 2009
It is good time for home buyers, especially buyers looking for affordable home. The government has taken some positive step to boost realty sector. Tax holiday has been announced for ongoing infrastructure projects which were approved during 2007-08 and projects to be completed before 2012. Earlier, the provision was limited to only projects sanctioned before March 2007 and the project to be completed before March 2010.
The government has decided to reduce interest rate one per cent for one year on home loans less than Rs 10 lakhs for a house costing Rs 20 lakhs. The move is expected to boost realty sector and the realty sector is directly or indirectly support other sectors. This measure will have positive impact on economy.
The interest subsidy is aimed at mid-segment housing loan borrowers. One caveat is the cost of the house should not exceed Rs 20 lakhs. Also, the subsidy will be available only for one year. This interest subsidy will be routed through scheduled commercial banks and housing finance companies registered with NHB. A number of developers have been considering getting into this segment. The move to extend by two years the tax exemption available to builders of smaller homes is also likely to persuade builders to reduce the cost of such homes. The minister has urged the developers to pass the tax benefits to customers.
Working of One per cent subsidy
The government has decided to reduce interest rate one per cent for home loan up to Rs 10 lakhs for house costing Rs 20 lakhs, for one year. This means, if you take home loan for 9 per cent and your loan amount is less than Rs 10 lakhs to buy a house costing Rs 20 lakhs, you are eligible for one per cent subsidy.
The Bank deducts one per cent interest from your loan and collects only 8 per cent interest on your home loan from 9 per cent. The one per cent interest subsidy will be routed through scheduled commercial banks and housing finance companies registered with NHB. It means a one-time saving of Rs 7,596 for anyone who takes a Rs 10-lakh 20-year loan at an interest rate of nine percent, with the subsidy taking his effective interest rate down to eight percent.
Tags: Apartment, Apartment India, Bangalore, Bangalore East, Buying, Home Loans, Housing, Housing India, Housing Societies, income tax, indian real estate, market trend, property, Real Estate India
Posted in Bangalore | 2 Comments »
Saturday, July 25th, 2009
State Bank of India will hold two days loan mela in Davangere. Loan mela will be held on Saturday and Sunday at Abhinava Renuka Mandira. The customer with relevant documents can get car loan on the spot and SBI will issue loan approval letter for loans under housing schemes. SBI will not charge any processing fee for loans in the loan mela.
During loan mela held last year, SBI had done a business totaling over Rs 7 crore and targets to achieve the business of Rs 15 crore this year. There was a special offer of car loan as well as housing loans. The customer for loan for housing will get loan approval letter at loan mela and application for car loan will be sanctioned on the spot.
SBI will accept PAN card, voter ID cards, driving license, and passport as identity proof. Proof of residence, Bank account details, Form 16, IT returns for past three years and salary certificate are essential for sanctioning your car loan or get a home loan sanctioned in the loan mela.
Reference:
SBI loan mela from today
Tags: Apartment India, Bangalore, Home Loans, Housing India, indian real estate, market trend, property, Real Estate India, SBI Home Loan
Posted in Uncategorized | No Comments »
Friday, July 24th, 2009
Budget apartment bring affordability and easy repayment of home loans. Budget apartment projects are in the price range of 25-30 lakhs and some projects are in range of 8-10 lakhs or less. There is rise in demand for budget apartment and this has become good choice for end-users and investors.
Localities around Whitefield, HRBR Layout, Lingarajapuram, Sahakarnagar, Hennur Road, Hegde Nagar, K R Puram, and Hosur Road are witnessing the rise of budget apartment projects. Some projects in the range of Rs 8-10 lakhs also, with an area of 500-700 sqft are coming up on Bannerghatta Road, Hosur Road, Sarjapur Road, and Whitefield.Lack of space in the city and high land cost has led developers to come up with such options in localities away from the city.
For an end user, budget apartment offers affordability and easy repayment of home loans. A home loan ranging 25-30 lakhs are easily available and a joint loan will reduce burden of monthly EMI. This enables end user to repay loan easily.
A budget apartment is good choice when considering to resale after two or three years. If investor doesn’t have adequate cash flows, he can buy a lower level and this can work as a hedge against inflation.
Tags: Apartment, apartment buy-sell, Apartment India, Bangalore, budget apartment, Home Loans, indian real estate, market trend, property, Real Estate India, recession, Tips
Posted in Apartment Buying | No Comments »
