State Bank of India to Hold Home Loan Rates

Among the several loans offered by banks and housing finance companies in India, SBI home loan products are the most preferred options among home buyers. Being the apex financial institution in India, State Bank of India disburses a wide range of standard as well as personalized home loans to interested customers. With a range lying in between Rs.5 Lakh to over Rs.5 Crores, SBI aims at catering to the housing finance needs of people from all walks of life. All it takes is a little homework and one can easily secure ideal home finances at the best SBI home loan interest rates.

With several lenders revising their interest rates, while keeping the interests of their valued customers in mind, the mortgage market is experiencing a gradual growth lately. However, when it comes to SBI home loan deals, customers might be a bit disappointed by the recent decision taken by the topmost public sector financier in India. In a recent public meet, a senior official of the bank announced that SBI will retain its home loan interest rates for an undisclosed period of time.

The Reserve Bank of India (RBI), the Indian banking watchdog, lately kept its policy rates stable. However, in a recent announcement, the RBI lowered the borrowing limit for banks from the overnight facility. The lowering of the borrowing limit is generally followed by a rapid rise in the cost of funds for the lenders. Though the cost of funds is likely to go up in the near future, there will certainly be no change in the SBI home loan interest rates. However, there are some banks that have raised their lending rates, following the reduction in the borrowing limits, which is likely to increase the demand of SBI home loan deals in the market.

Being the most preferred lender in India, SBI still aims at providing maximum benefits to the customers by offering stable interest rates, personalized tenure, flexible repayment terms and superior customer service. As of now, the State Bank of India is charging an interest rate of 10.10% p.a. for a SBI bank home loan up to Rs.75 Lakhs from woman borrowers. However, for the amount of home loan exceeding Rs.75 Lakhs, the bank is now charging an interest rate of 10.25% p.a. Last month, SBI also decided to extend its special home loan scheme for women for an indefinite time period (earlier valid till 31st March), seeing the tremendous response it received all across the nation. On the other hand, from the regular borrowers, SBI demands an interest charge equivalent to 10.15% p.a. of the SBI bank home loan amount to Rs.75 Lakhs and 10.30% p.a. for amount above Rs.75 Lakhs.

Being categorized on the basis of the amount borrowed by an individual, home loan SBI can serve every distinct purpose of the borrower, ranging from new home/plot purchase or constructing a new home, to renovating or expanding a current residential property. One just needs to be careful while comparing the SBI bank home loan products with personal need and wants for making a wise selection to fulfill the long cherished dream of owning a house.

Documents List for HDFC Housing Loan

The evolution of home loan market in recent times has meant that a large number of people have been able to relive their dream of owning a house. If it was not for easy availability of home loans, the rising real estate prices would have meant, buying a home out of bounds for the average Indian citizen with limited income. A number of public banks, private sector banks and non banking financial companies offer home loans subject to minimum eligibility criteria. Any individual with a well oriented financial health capable of repaying his or her home loan obligation can avail the advantage of housing loans.

Let us take a look at home loan eligibility criteria and documents required for home loans from HDFC home finance limited.

Home Loans from HDFC Home Finance: 

HDFC home finance limited is a leading non banking financial company offering home loans to a large number of projects across the country. HDFC limited offers housing loans for existing freehold properties as well as on flats, bungalows and row houses from developers including properties in existing or proposed co-operative housing societies. HDFC home finance is one of the most popular non banking financial companies for housing loans offering easy repayment options. HDFC home finance limited has collaborated with Bankbazaar.com offering lucrative interest rates for housing loans with instant approval and quick online submission.

Home Loan Eligibility:  

Home loans from HDFC home finance limited and Bankbazaar.com are available for both salaried and self employed individuals having a decent loan repayment capacity. Housing loans are available for both Indian citizens as well as NRIs between the ages of 21 years to 65 years. The individual filling for a housing loan must have a good credit score from CIBIL. BankBazaar.com offers a housing loan eligibility calculator tool allowing users to check for their eligibility criteria for home loans.  The amount of home loan that can be availed depends on the cost of the property. HDFC home finance offers a home loan to the tune of 80% of property value in case of loans less than Rs. 20 Lakhs and up to 85% of the property value in case of loans higher than Rs. 20 Lakhs.

Documents Required for HDFC Home Loan: 

HDFC home finance requires basic documentation check before housing loan approval. The documents required for HDFC home loans include the following:

·         Duly application form with latest photograph,

·         Address and identity proof,

·         Latest salary slip for salaried individuals

·         Proof of business for self employed individuals.

·         Salaried persons also need to submit form 16 with their latest salary slip.

·         Self employed individuals must submit their business profile for housing loan approval.

·         Self-employed individuals would be required to submit income tax returns both for self and business for the last three years.

·         Both salaried and self employed home loan borrowers need to submit their last six months bank statement. 

·         Self employed individuals must attach bank statement for both self and business.

·         Processing fee is taken through cheque that must be submitted along with the home loan application form.

Ever Reliable Banks with Impressive Home Loan Interest Rates and Advantage for Home Owners

Buying a home is once in a lifetime opportunity for a large majority of people. Due to easy availability of home loans, a vast majority of people have finally cherished their long pending dream of owning a house. While home loans are now a common financial instrument offered by virtually all private and public sector banks, some banks continue to be the proffered choice amongst users due to their easy loan approval process, lower interest rates and no hidden charges. A home loan applicant is recommended to always compare home loan quotes from multiple banks before selecting the best suitable bank for his or her home loan. Let us look at some of the reliable and popular banks with impressive home loan interest rates and an overall positive track record.

Five Reliable and Popular Home Loan Banks: 

Public sector banks are largely preferred when it comes to home loans as they offer slightly lower rate of interest. However the slow approval rate and sluggish nature of work in public sector banks usually make people embrace Non-banking financial companies and popular private sector banks who are known for their quick loan approval process and professional dealing. Here is a list of the top five reliance banks and non banking financial companies that users prefer when it comes to applying for home loans.

State Bank of India: 

State Bank of India popularly known as the SBI is the largest public sector bank of the country and one of the popular banks when it comes to home loans. Although the heavy rush of home loan applications and slow loan approval system can sometimes mean a longer waiting period for loan approval, lucrative interest rates makes SBI a popular choice with home loan borrowers. State Bank of India charges a minimal processing fee of Rs 1000 or 0.25% of the loan amount for loans up to Rs. 2 Lakhs. For loans between Rs. 25 Lakhs to Rs. 75 Lakhs, the bank charges a flat processing fee of Rs 6500. Loans higher than Rs. 75 Lakhs come with a loan processing fee of Rs. 10,000.

LIC Housing Finance: 

If any non banking financial company comes close to public sector banks in terms of home loan popularity, LIC Housing Finance tops the list. One of the unique advantages of LIC Housing Finance is the option of having a fixed interest rate for a period of five years. LIC Housing Finance offers a discount of 0.25% on home loan interest rates in case the borrower has an insurance or investment policy with LIC more than Rs 15 Lakhs.

Axis Bank:

Axis Bank is a popular choice for home loans due to its zero pre payment charges and quick loan approval mechanism. Axis Bank also charges quite competitive loan processing charges which are up 1% of the total loan amount of a minimum of Rs. 10,000.

HDFC Bank: 

HDFC bank is a popular choice for home loans for private sector banks. HDFC bank has been a pioneer in the home loan market and has active tie ups with good and respectable builders across the length and breadth of India. HDFC bank charges 0.5% f the loan amount towards processing fee charges excluding cess and service tax.
Click here to know more on home loan provided by HDFC Bank

Punjab National Bank: 

Punjab national bank is a popular public sector bank offering lucrative home loan interest rates. A large number of people are still biased towards public sector banks when it comes to home loans and roughly so as public sector banks offer slightly lower rate of interest and lower loan approval charges. Punjab National Bank charges 0.5% of the loan amount towards loan processing charges for home loan up to Rs 3 crore.

Home Loan Repayment Calculator Online

Earlier, people relied completely on the EMI’s calculated by a lender for the repayment of home loan. However, as time passed, the technology became more advanced and the level of awareness increased among borrowers, and online calculators came up as the ideal tool for getting a fair idea about monthly EMI’s. Now, borrowers get a rough estimate of EMI’s for any particular amount of home loan at a given interest rate and time period, for planning the repayment in a smart manner.

Somehow, many customers stick to a false notion that calculators help in choosing the right home loan only and are of no use thereafter. However, in reality, they do much more than just helping one compare home loans offered by different lenders or crosschecking the monthly EMIs. Home loan repayment calculator is an amazing tool that helps borrowers manage their debt in a smart and well-planned manner, without exerting much pressure on their regular finances. Here is how this relatively simple tool helps in selecting a loan, planning repayments and managing it over the loan period in an effective manner. 

Home Loan Selection

Home loan repayment calculator can prove to be helpful when making several important decisions. One can easily determine the maximum amount of home loan that can be borrowed and what portion of monthly income must be set aside for servicing the EMIs. Alternatively, some calculators even provide the facility of checking affordability by entering the loan amount one wishes to secure and getting a rough estimate about the monthly payments.

There are several ways in which calculators benefit the potential borrowers when shopping for an ideal housing finance. One can check what kind of effect different tenure periods will have on the monthly outgo and finalise the term that guarantees maximum savings and easy repayment over a period of time. Home loan repayment calculator can also be used for making a choice between variable interest options and fixed rate options. This helps in getting a fair idea about how affordable and efficient would each option prove to be in the long run. 

Planning Repayments

There is no denial to the fact that effective loan repayment plans help in saving more and gaining more equity on the property in a short span of time. To get precise numbers in the results, one must enter different amounts of EMI’s, preferably more than the original one, in the home loan repayment calculator. This presents a clear picture regarding how a borrower can repay their debt quickly and how much they will save while doing so. Some more advanced tools enable users to know about the possible effect of bulk payments or extra annual payments on the overall debt and financial standing of the borrower. It certainly helps in comparing the probable repayment options and settle with the most economical one.

On the whole, home loan repayment calculator is a boon for choosing an ideal home loan deal and planning the repayment across the home loan tenure. One can determine how much amount should be repaid over a period of time and whether or not it will result in savings and prove to be a cost-efficient option. All it takes is entering the required parameters and comparing the results generated to make the right decision. 

LIC Housing Finance Interest Rates and Latest Offers April-May 2014

Life Insurance Corporation, popular as LIC, is a well reckoned name in the world of finance. Being one of the most entrusted providers of financial solutions in India, LIC holds a distinct identity in the eyes of customers. Extending its services to several different fields, LIC aims at fulfilling the long-cherished dream of an average Indian i.e. purchasing ‘own’ home, through its competitive home loan products.

Whether it is for purchasing a new flat, home, plot or any other residential property, for constructing a new home, or for renovating or refurbishing an existing real estate property, LIC provides full financial assistance to customers looking forward to apply for home loan. At present, LIC offers long term finances at comparatively lower LIC home loan interest rate to the interested borrowers through its special schemes.
You can check Bankbazaar for applying for Home Loan in future.

Current Interest Rates and Other Charges:

Life Insurance Corporation offers ideal home loan deals at attractive interest rates, which not only turn out to be an affordable option for customers, but also prove to be easily repayable during the loan period. As of now, the financier charges an interest rate of 10.10% p.a. on loan amounts up to Rs.3 Crore, with LIC home loan interest rate remaining fixed for the first two years and floating thereafter.

LIC charges an upfront fee equivalent to 1% of the sanctioned loan amount plus service taxes, as applicable. When talking about processing fees, LIC charges Rs.10000 flat plus service tax for home loans up to Rs.50 Lakhs, and Rs.15000 plus service tax on home loans exceeding the Rs.50 Lakh mark.

  

Current Housing Finance Schemes:

Currently, LIC offers housing loans under two distinct schemes to the resident Indian as well as non-resident Indian borrowers at impressive lending rates. Here is a quick summary of the two home loan schemes offered by the lender in India.

1. Griha Prakash

Perfect for purchasing, constructing, extending, restoring or renovating a new or existing home, or for simply purchasing a residential land, Griha Prakash loan scheme is the most popular housing finance product offered by the lender to Indian residents. As of now, LIC providers a minimum loan amount of Rs.1 Lakh to borrowers. Borrowers can get a loan up to 85% of the total cost of the property, including registration charges and stamp duty, for loan amount up to Rs.20 Lakhs. For the amount exceeding Rs.20 Lakhs, LIC sanctions loan amount up to 80% of the actual cost of the property, including stamp duty and registration charges. The maximum tenure period offered by LIC is 20 years, during which, the loan amount can be repaid on monthly rest basis, along with the stipulated LIC home loan interest rate.

2. Griha Shobha           

Catering to the needs of Indians settled abroad, Griha Shobha loan scheme is an earnest attempt from the most popular financier to enable the NRI’s to have something of great value back in their home country. As of now, LIC offers a minimum loan of Rs.5 Lakh under this scheme, with the maximum tenure period ranging between 10 and 15 years (depending on the occupation of the borrower). The scheme covers all different purposes, including construction, purchase, repair, renovation and extension of new or existing residential property.

Though pioneer in the field of life insurance, LIC holds a distinct popularity among the housing finance seekers for its competitive home loan deals. Attractive interest rates, flexible repayment terms and a plethora of other facilities make LIC one of the most preferred lenders for home loans India.  

Axis Bank Home Loan EMI Waiver Scheme

Axis Bank Home Loan EMI Waiver Scheme

With the aim of refraining its home loan customers from making a switch to other mortgage lenders that offer better deals on the table and increasing its overall home loan business by attracting new customers, Axis Bank came up with a new scheme labelled as ‘Happy Ending Home Loan’. Under the new Axis Home Loan product, the bank promises to waive off 12 EMI’s (equated monthly instalments) if a new borrower sticks with the bank for a period of 15 years, under a new floating rate option having a full tenure of 20 years or more.

Happy Aspects of the Happy Ending Home Loan

Axis Bank, ranked as the third largest private sector banking institution in India, has placed its bet for increasing the Axis Home Loan business on its relatively new and unique scheme, characterized by its inbuilt EMI waiver option.  As long as the borrowers service their EMI’s on time, the bank will waive off the EMIs of the last 12 months of the home loan tenure. Moreover, similar to the regular Axis Bank home loan products, Happy Ending loans are also backed by zero prepayment penalty.

As of now, this unique scheme is available at the same interest rates as the regular Axis Bank Home Loan Interest Rates and would only be applicable for new home loan customers opting for floating rates of interest. The EMI waiver is basically offered to all new home loans that have a minimum tenure of 20 years and have completed a period of 15 years with Axis Bank. Every customer, who has serviced the EMIs on time for this 15 year period, will be automatically entitled to receive the waiver benefit.

Whom will it actually make Happy?

Customers, before opting for the Happy Ending Home Loan, must look into the fine print of the scheme to avoid any unwanted difficulties later on. Instead of measuring this product on the scale of future benefits, one should ideally look into the present state. Interest rates are something that tend to take unexpected turns at any point of time in the future. Nobody can really apprehend their movement and know the direction of their movement way in advance. This is the reason why many Axis Home Loan customers prepay their debt before reaching the actual closure date. According to a statement of Axis Bank executive, borrowers prepay their home loans within the first 8-10 years of the actual tenure. In such a case, where repayment is made before the expiry of 15 years, opting for Happy Ending home loans wouldn't be a wise option. However, the borrowers planning on sticking with the bank for 15 years or more can choose to go with the unique Axis Home Loan product and reap its benefits.

The Final Word

This exclusive EMI waiver scheme is a perfect product from the bank’s perspective in terms of retaining old customers with a good repayment record as well as attracting new home loan seekers. However, from the customers’ point of view, this might be a good option if the accelerating rates of interest are not a concern and they plan on taking their loan up to its closure date.