home loan
The Reserve Bank of India (RBI) had jacked up its key lending rate by a steep 425 basis points in the past 15 months to batten down inflation and the banks have passed on the increased cost to borrowers. Banks have been witnessing rising risks from small and medium scale industries and unsecured portfolios, which [...] Continue Reading »
The SBI had grabbed attention and market share in the competitive home loan space after it pioneered the teaser home loan scheme in February 2008 which offered a low, fixed interest rate at 8 per cent in the initial years of the loan. Later, it morphed into a floating rate at the prevailing market rate. [...] Continue Reading »
Several banks had reduced their yearly business growth targets following slowing in credit offtake on account of increasing interest rates. The Reserve Bank of India has raised policy rates 11 times in the past 16 months, making funds dearer. Banks are looking to boost credit growth, which has suffered due to high interest rates. Most [...] Continue Reading »
ICICI Bank will offer customers the option to choose a fixed rate of interest for one or two years, after which it will charge applicable floating rate depending on its base rate. The bank’s base rate is at 10% now. Customers opting for the product, which would be available from Friday, would have to pay [...] Continue Reading »
Differential rate of interest scheme (DRI) was formulated by the central government in 1972 for extending financial assistance at a concessional rate of interest (4%) to select low income groups for productive endeavours. These loans were to be given initially by public sector banks and then by private sector banks also. The Reserve Bank of [...] Continue Reading »
Insurance of buildings has been compulsory since 2001 under the state government byelaws, hardly any housing societies have taken the initiative. Title insurance ensures that the current owners are safe from past claims and title faults, and puts the property firmly in their possession, particularly in case of housing societies. Insurance can also protect against [...] Continue Reading »
Banks are a large source of funds for the housing finance companies (HFCs) and an increase in their lending rate would push up the cost of funds for the HFCs. Since the latest round of monetary tightening by RBI last week, a host of banks and lending institutions have raised their rates and HDFC is [...] Continue Reading »
The Reserve Bank of India (RBI) decision to raise key policy rates by 25 basis points can dent sales of homes in the country. Over the last six months, builders have been witnessing a decline in registrations for homes and the latest round of hike is seen adding to their worries. Over the last 15 [...] Continue Reading »
With major banks and housing finance companies (HFCs) raising mortgage rates, it is tough times for a large number of home loan customers with floating rates. On Tuesday, State Bank of India, the country’s largest bank, raised both its deposit and lending rates, taking its effective home loan rate to 10.25%. A back of the [...] Continue Reading »
Interest rates on all loans will go up. However, there could be some cheer for savings bank account holders as the RBI simultaneously increased interest rates on savings deposits If you were eyeing that swanky house or a cool set of hot wheels, prepare to shell out more to live your dream. Interest rates on [...] Continue Reading »
