Home loans
State Bank of India has gone through teaser loan scheme by the Reserve Bank of India (RBI) in early 2009 but now ruled out relaunching a dual rate scheme for home loans due to its paying a stiff price in the form of huge provisioning. ICICI Bank and HDFC have already come up with teaser [...] Continue Reading »
Reserve Bank of India (RBI) said floating rate home loans will be spared penal charges in case of prepayments. Besides the decision on home loans, the action points include measures to protect customer interest in unauthorized ATM transactions, and a policy for compensation to customers for mental harassment. The regulator for housing finance companies like [...] Continue Reading »
ICICI launched its dual-rate home loans scheme nearly a month back where customers can choose a fixed rate for one or two years, HDFC unveiled ‘Fixed First’, a home loan where interest rates are fixed for the first three or five years and then shifted to floating rates, on Monday. For loans up to Rs30 [...] Continue Reading »
The real estate sector in Pune is beginning to show serious signs of strain under the combined weight of increasing cost of construction, astronomical mortgage rates and a generally uncertain economic climate. Inflation has also contributed to a decrease in affordability of residential properties. In 2011, prices had increased by between 4-5 % in many [...] Continue Reading »
Interest rates levied by housing finance companies (HFCs) have risen to 11-11.25% from 8.5% in the past year, raising monthly instalments. With interest rates moving up, most of the lenders are going to be impacted as almost 85% of the loans are on floating (interest) rate. National Housing Bank (NHB) asked lenders to keep a [...] Continue Reading »
Figures collated by online portal Foreclosure India on auctions held by banks and Debts Recovery Tribunal (DRT) since January 2010 show that of 32 cities across India, Mumbai’s speculative realty market has the second highest number of foreclosed properties after Bangalore. DRT show a 23 per cent rise in cases of Mumbai properties, mostly residential, [...] Continue Reading »
The critical issue for realtors over the next 12 months would be to ensure their debt load doesn’t enlarge, especially since fund availability is constrained and many loans are coming up for repayment in this fiscal. In the context, a good traction in sales becomes another crucial imperative. Developers are finding it tough to generate [...] 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 »
