Know all about ICICI Home Loan interest rates in India

ICICI Home Loan Interest Rates

Home is the place where we share our dreams, talks, thoughts and most importantly our lives with our dear ones. It is one

of the precious asset one can possess in his/her life. But sometimes, financial problems or short of funds may lead us to

suppress our dream and move on in a rented house for ever. But, why to do so when we have a solution? Home loan would

give you all the privilege to share your lives with your family in your own home.

                                                  Image Source: icicibank

ICICI Bank has come up with a product called “ICICI Home loans” especially for women borrowers who are the ultimate diva

to build a home. Earlier they used to build their homes with their love and dedication. But, now ICICI Bank home loans will

give them an opportunity to build their homes with the brick of love and emotions. Yes, a special interest rate is offered by

ICICI Bank home loans for the women borrowers.

There are several features in ICICI Bank Home loan which will make you drive with a key to your dream home.

First, let’s discuss about them.

ICICI Home Loan features:

ICICI Home loan interest rates are very attractive and less, especially for women borrowers.

You’ll get a loan tenure up to 30 years.

There is a clear and transparent documentation.

Loan will be provided only for approved projects.

Facility of Balance transfer to a bank offering less interest rates is available.

Facility of taking loan against property is available.

And what more a man desires? ICICI Bank home loan is a full package of features and facilities with less interest rates. Let’s

discuss about ICICI Bank home loan interest rates.

ICICI Bank Home Loan interest rates (offer valid till 31st august 2014):

ICICI Home Loan Interest rates for women borrowers:

ICICI Home Loan Interest rates for other borrowers:

For the amount of home loan less than 75 lacs, ICICI Home loan interest rate is 10.10% (Floating rate).

For Salaried individuals:

For the amount of home loan less than 75 lacs, ICICI Home loan interest rate is 10.15%

(Floating rate).

For the amount of home loan more than 75 lacs, ICICI Home loan interest rate is 10.50% to

11.25% (Floating rate).

For Self-employed individuals:

For the amount of home loan less than 75 lacs, ICICI Home loan interest rate is 10.25%

(Floating rate).

For the amount of home loan more than 75 lacs, ICICI Home loan interest rate is 10.50% to

11.25% (Floating rate).

ICICI Home Loan Interest rates for priority sector lending:

ICICI Home Loan 1 year / 2 year Fixed interest rate:

ICICI Home Loan renewable Fixed interest rate:

For the amount of home loan less than 15 lacs/25 lacs, ICICI Home Loan interest rate is 10.15%

(Floating rate).

For Salaried individuals:

For the amount of home loan less than 75 lacs, ICICI Home loan interest rate is 10.15%.

For the amount of home loan more than 75 lacs, ICICI Home loan interest rate is 10.50% to

11.00%.

For Self-employed individuals:

For the amount of home loan less than 75 lacs, ICICI Home loan interest rate is 10.25%.

For the amount of home loan more than 75 lacs, ICICI Home loan interest rate is 10.50% to

11.00%.

For the initial period of 2 years the FD rates are:

For the amount of home loan less than 75 lacs, ICICI Home loan interest rate is 10.25%.

For the amount of home loan more than 75 lacs, ICICI Home loan interest rate is 10.50% to

11.00%.

Note: All the above rates are valid till 31st

interest rates from time to time.

Therefore, these are the ICICI Home loan rates which are very less and competitive with a lump of facilities that are

irresistible. So, don’t waste your time in thinking, just go grab the opportunity.

For all the information about home loan with the comparison access and EMI calculator, visit www.bankbazaar.com and

apply for your home loan there and then only. Visit now! Your home is waiting for you!

 august, 2014 and are subject to change. Please check the ICICI Home loan

Top 5 reasons for drop in 2014 Home Loan EMI

Home Loan EMI

Home is the most precious and expensive asset that we make during our life. With the increasing range of homes in terms of cost, it is really very difficult for the people to get their dream home. And what else you get? A heavy and thrifty burden of EMI’s will make it even more expensive. But, one can manage the drop in Home loan EMI with the few reasons associated with the drop in Home loan EMI’s in 2014. Banks are now more customer centric and have given few options for customers to lower their EMI’s. Let’s discuss the top 5 reasons for drop in 2014 Home loan EMI.

Reasons for drop in 2014 Home loan EMI’s:

1.     Tenure Stretched to 30 years: Recently RBI has announced that there will be an increase in the tenure of Home loan for its repayment. Earlier the Loan repayment tenure was fixed at 20 years but now it has been stretched to 30 years. Because of this, the EMI will be distributed for 30 years and the Home loan EMI will get lower. So, the individuals who do not have much repayment capacity in their pockets can opt for 30 years loan tenure to reduce their burden of heavy EMI’s.

2.     Lowering of Interest rates: Recently many banks have reduced interest rates for their home loans like SBI has made it @10.15% for men and 10.10% for women. Lowering interest rates means that EMI will get reduced as most of your EMI in the initial years comprises of interest amount. Thus, due to lowering of interest rates, Home loan EMI gets reduced.

3.     Balance Transfer option available: Many banks has this option available with them. Balance transfer option means that if some other bank is offering comparatively lower interest rates on their home loan, the person can transfer his/her balance amount of loan to the other bank who is offering lower interest rate, in order to make his/her monthly EMI’s lesser. This can be done by using Home loan EMI calculator where you can calculate the difference or benefit you’ll get in your EMI’s, if you choose for balance transfer in other bank.

4.     Lump sum prepayment option available: Some banks have the option of Lump sum prepayment when you have good amount of cash in your hand. In this option you can prepay lump sum amount towards home loan and continue your home loan with the balance amount for the same tenure. This will reduce the balance amount left for payment and hence, will decrease your amount of monthly EMI’s.

5.     Floating Rate of Interest: This option is pretty much interesting. There are two types of interest rates that you can opt for. One is fixed interest rates which remains same throughout your loan tenure and the other one is floating interest rates which changes with change in the base rate announced by RBI from time to time. Going for a floating interest rate can give you a pleasure of less EMI, if the base rate is reduced by the RBI. Thus, you can get a chance of enjoying lower EMI’s.

Therefore, these are the top 5 reasons or options available with the customers in order to reduce the burden of heavy and high EMI’s. It is our pocket and no one else knows how deep or shallow it is. So, get your EMI’s adjusted at par with your repayment capacity every month. You can do so by using Home loan EMI calculator, which will give you a clear range of your EMI’s on the basis of the amount you are in need of, interest rate and loan tenure.

Get the full access to all the major providers of home loans, compare among them, calculate your EMI’s using Home loan EMI calculator and apply through your home loan on a single screen. 

Real Estate News on Home Loans

The formation of a new central government brought back a positive momentum in the real estate segment. With plans to increase the LTV ratio as high as 90% by the National Housing Board and discounted interest rates being offered by top lenders ICICI Bank and State Bank of India, the home loan market has witnessed a good month. The Reserve Bank of India kept the repo rates unchanged helping in continuation of home loan interest rates devoid of any hike. Now with the annual budget just a few weeks away, the real estate industry and home loan seekers are bracing for positive announcement in the budget that can bring back the buzz in the home loan segment and the real estate sector as a whole.

RBI keeps repo rates untouched:

In a positive development announced in the beginning of the month of June, the Reserve Bank of India kept key rates unchanged. The repo rate was unchanged at 8% while the reserve repo rate was fixed at 7%. The SLR however was cut by 50 basis points. The announcements were largely as per market expectations and meant little or no change in home loan interest rates for new or existing borrowers.

High expectations from Union Budget 2014-15:

With the new central government likely to present its annual budget on the 10th of July, there are high expectation from both real estate developers and potential buyers. A vast majority of people expect the Narendra Modi government to announce a real estate regulatory or watchdog much on the lines of TRAI for the telecom sector. While developers expect change in laws for easier clearances, home loan borrowers are expecting deduction on home loan interest rates making buying a home more affordable to the common man.

NHB to allow up to 90% LTV:

Earlier the national housing bank NHB announced its plans to increase the LTV ratio for home loans above Rs. 20 Lakhs to 90% of the property value. If approved the NHB plan would allow more users to avail home loans as it would reduce the margin money required by individuals seeking home loans. With the sluggish gains in the real estate sector in the past year, NHB plans to increase LTV ratio is likely to trigger a positive impetus in the domestic housing real estate market. 

ICICI Bank cuts home loan rates:

ICICI Bank, India’s largest private bank and also the biggest home loan provider in the private sector announced a 0.10 percent cut in home loan interest rates. The limited period offer ending on June 30th brings ICICI Bank home loan interest rates at par with the discounted home loan rates of State Bank of India, the country's largest home loan lender. ICICI Bank offers home loans up to Rs. 75 Lakhs 10 10.15% while women borrowers would be given a further 0.05% discount with loans available at 10,10%.

SBI extends discount scheme for women borrowers:

The State Bank of India extended its home loan interest scheme especially designed for women borrowers. The scheme which was originally to expire on March 31, 2014 has been extended for an indefinite period allowing women borrowers a discounted interest rate of 10.10% for home loans above Rs. 75 Lakhs. For home loans above Rs. 75 Lakhs, women borrowers are eligible for home loans at 10.25% compared to 10.30% for other borrowers.

Developers want Home Loan Interest Exemption to be upped

The real estate market in India exhibits a practical example of demand and supply – basic law of economics. The soaring prices of property depict its excess demand which is making investment more expensive with each passing day. The high appreciation in property prices, ranging up to 50%, has not only caught the common man’s attention, but has even tempted NRIs to invest their funds. At this point, the government has to play a crucial role in the revival of residential real estate prices with new policies, increased tax exemption, and reduced interest rates, etc.

Home Loans in India

The boom in the real estate sector has given home loan business a new dimension by attracting various investors to build their dream house. Though home loans have always been the best choice for the end customers, but in the recent times, constant home loan tax exemption of Rs 1.5 Lakhs has failed to match the inflation. The middle income groups, especially the salaried individuals’ feel prohibitive prices and a few incentives make their dream beyond reach. Furthermore, the current tax benefits are too less to fuel the demand and propel growth in infrastructure.

Need for Increase in Tax Exemption on Home Loan

With the entry of a stable government, everyone is expecting the upcoming budget to provide the required policy incentives, stability and tax concessions for promoting the investments and economic growth of the country. The new government should primarily focus on continuing stimulus measures, seeing the delicate situation of economic recovery.

Specifically, in the context of real estate, developers feel a strong need for tax exemption in order to make home loan finance sector affordable. Few of the key recommendations for the upcoming budget are listed below:

·          Infrastructure status to be given for affordable housing: In this scenario, once the infrastructure will fall under priority sector lending of banks, it will provide funds at less rates.

·         Increase in exemption limit for home loan interest: The tax benefit for home loan interest has been the same at Rs 1.5 Lakhs since 2001. Since, the real estate prices have increased manifolds; the amount of loan required by an investor has also been directly affected. Developers are of the opinion that if this limit is increased to Rs 3 Lakhs, it might help in bringing back the boom in the real estate industry. This would surely be quite lucrative for the investors as it would imply additional tax savings as well.

·         Revision of home loan limit for PSL: The housing loan limit should be revised from Rs 25 Lakhs to Rs 35 Lakhs under PSL as this move would help buyers who are struggling to buy property due to soaring prices.

·         Income tax rebate should be extended to the private sector for the development of affordable housing

To sum up, the raised expectations of developers should be considered in order to review the benefits that housing loans provide under the various sections of income tax act. This move will definitely help people at all levels to borrow in order to fulfil their dream of owning a property.

How to Choose the Best Home Loan in India?

There are a number of financial institutions and banks in India that provide varied banking solutions, loans, investment options and many more services according to an individual’s requirement. All banks are competitive in terms of offers, discounts and the interest rates; hence, it becomes worrisome to select the best amongst the hundreds of alternatives.

There are more than a hundred banks in India which provide home loans to all classes of people on the basis of affordability. The main and foremost feature to look in the home loan is the “home loan interest rates” along with the repayment methods. It should be competitive enough with no hidden charges, quick processing time and the transparency throughout the procedure.

Understanding the types of home loan interest rates helps to select the ideal one.

Ø  Secured Home loan: These are loans provided against some kind of security or guarantee, such as a loan against property, any valuable asset, or jewellery or some legal documents. If any default situation arises, then the pledged thing becomes the lending institution’s property. In this case, the interest rates are comparatively less.

Ø  Unsecured Home loan: Loans are issued without any security, but the interest rates are higher as the loan is disbursed under the lender’s risk.

Ø  Variable Interest Rates: The interest rate may increase or decrease depending on the market fluidity.

Ø  Fixed Interest Rate: Here, the rate of interest is fixed throughout the loan tenure.

Ø  Split Loan: Some lending institutions or banks also provide split loans in which half of the loan amount is of variable type and the rest would be of fixed type.

Along with home loan interest rates, there are a few other features to be looked into while going for a home loan.

1. The EMI concept - The Equated Monthly Installments (EMI) are calculated using the home loan EMI calculator, depending on the down payment amount, and the loan amount. The loan amount includes the principal rate and the rate of interest. The more the down payment, the lesser the EMI would be. Calculate and think about the size of EMI you can afford every month till the loan tenure.

2. Loan Tenure - Loan tenure can be adjusted according to the affordability of the EMI. The increased loan tenure contains the increased rate of interest as well.

3. The Processing and other hidden charges -  There are banks, which believe in serving the people in any way, thus such banks waive off the process fee with an affordable interest rate. Compare the banks for the transparency in the procedure.

4. Ensure the Eligibility criteria and the documentation process - Compare the eligibility criteria, some banks are not stern about the eligibility and also provide a relaxation in the age and income factors. Ensure the facts and ensure a hassle free documentation check process.

5. Prepayment / Foreclosure options - The home loans can be closed anytime after six months of loan disbursal with a small percentage of foreclosure charges of the outstanding principal amount.

Thus, narrow down your search after considering and understanding the features to choose the best home loan, which can be applied either online or at the nearest branches with the required documents. Then the essential verification are done to disburse the home loan in 3-4 days.

About DHFL Home Loan and its current interest rates

Dewan Housing Finance Corporation Ltd(DHFL), established by Rajesh Kumar Wadhawan in 1984, is known for making available affordable housing finance to the lower and middle income groups in semi-urban and rural parts of India. It is one of India’s largest housing finance companies (and the second largest in the private sector).

The company provides home loan products tailor made to suit the needs of customers. It has tie-ups with leading public and private sector banks namely Punjab & Sind Bank, United Bank of India, Central Bank of India and YES bank to provide home loans to customers through a home loan syndication agreement. It has set up representative offices in London and Dubai to serve the ever increasing NRI population in these regions, and tied up with UAE Exchange to offer its home loan products through the various UAE Exchange centres in the GEC countries.

DHFL believes in reaching out to a vast majority of the low and middle income group customers. As a value-added product option to housing finance, it provides double protection to insure the life and property of customers, subject to terms and conditions. In association with leading financial Insurers in India, the company offers unique home loan linked insurance plans which could be customised to suit customer requirements. The basic intent is provide security to the family in the unfortunate event of the death of home loan borrower.

If you vail loan from DHFL, you can be assured of fair terms, total transparency and flexibility.  You can avail DHFL home loan for ready built-up or under construction house/flat purchase. The loan does not exceed 85 per cent of the cost of property (including stamp duty and registration fees) or 80 of the market value, whichever is lower. If you want further enhance the loan amount, you should have a co-applicant, whose income can be clubbed together with yours to enhance your home loan eligibility.

Your home loan amount will be determined taking into various account factors such as your repayment capacity, age, educational qualifications, stability and continuity of income, number of dependents, co-applicant’s income, assets, liabilities and your saving habits.

The tenure of your DHFL home loan ranges from 1 to 30 years. The term, however, won’t go beyond the retirement age or 60 years whichever is earlier (65 years for self-employed individuals). If you opt for loan period of 30 years, you can reduce the EMI amount on your home loan, enabling you to spend more money on your lifestyle and other needs.

DHFL offers one of the most competitive rates in the market (see the table below). The Interest rate applicable is based on the DHFL’s Retail Prime Lending Rate (RPLR) which fluctuates from time to time based on the money market conditions.

Bank Name	Up to 30 Lacs	From 31 Lacs to 75 Lacs	Above 75 Lacs	Processing Fee	Prepayment charges
DHFL	10.50% (for salaried), 10.75% (For SEMP)	11% (for salaried), 11.50% (For SEMP)	11.50% (for salaried), 12% (For SEMP)	1% for Salaried & 1.5% for SENP	NIL

In case of salaried individuals (SAL), home loan processing fee is 1 per cent of the loan amount, whereas for self – employed professionals / non-professionals, it is charged at 1.5 per cent of the loan amount, plus service tax and cess as applicable.

Home Loan Delay Bugs Customers

Home loans can easily be termed as the best financial schemes that allow borrowers to build their own dream house. In India, all the major banking institutions are known to offer high quality home loan schemes to customers who are willing to buy a new home. Even though the process of applying for a home loan is simple and straightforward, you might face certain delays due to various reasons. If you feel that home loan bugs customers, then you’d be wrong as by avoiding certain mistakes, you could easily make the process run smoother.

Home loan delay bugs customers who are in search of a quick loan advance; and the best thing that you could do as a borrower is to go through the reasons why you might have to face a delay. This will surely help you in improving your situation and putting the best foot forward.

Applicant’s income

The borrower must have a certain amount of monthly or annual income for being able to apply for a home loan. So, if you don’t submit the right salary slips that show your monthly income, then you might have to face a lot of delay because the bank is going to delve further into the matter before granting you a loan.

Opening cash reserves

Even if you meet all the eligibility requirements, the bank might ask you to open a cash reserve in which you’ll be asked to maintain a certain amount of balance in one of the bank accounts. This amount is kept aside as a security for the bank in case you fail to make further payments.

Credit history

Most of the banking institutions spend a lot of time in conducting a background check. They carefully go through your credit history to determine the fact that you’re a capable borrower who can easily repay the loan. So, it’s advised that you keep your credit history and report clean prior to applying for the loan.

Employment details

It is best to put forward your employment details in front of the bank as and when you submit the application form. If you fail to submit your documents, the bank might spend a lot of time doing a comprehensive check on your employment history which in turn would delay the whole procedure.

Incomplete or missing documents

If you fail to produce any kind of documents or even your photographs on time, then you might face an unwanted delay during the application procedure. A home loan cannot be granted to a borrower unless he has submitted all the documents in the head branch.

Applying on the Closing Day

You could even face some delays if you’re visiting the bank on the closing day. Banks usually don’t deal in any kind of customer services on this day and so you might have to delay the procedure by a day or two. So, you got to plan out your visit beforehand so that you can secure the loan easily.

These are some of the reasons why a home loan delay could bug the customer. Try to create proper strategies for making the home loan acquisition process a smooth and simple one!