Housing loans
The rate of interest may not have fallen significantly this year, but due to the difference in new and old home loan interest, the borrowers are shifting their loan from existing lenders to cheap lenders. The State Bank of India (SBI) is offering Rs 30 lakh home loan for the new borrowers at the most [...] Continue Reading »
Various leading banks have now made it possible for the home buyers to pay back their loan at leisure. Banks have adopted this policy in order to improve their retail credit group. The first ever bank with the longest year of repayment in the India’s banking history is the State Bank of India (SBI) with [...] Continue Reading »
Prime Minister Manmohan Singh has announced the launch of a home loans scheme – Rajiv Housing Loan Scheme. It will provide interest subsidy on home loans of less than 5 lakh. The new housing loans scheme is aimed at the urban poor of the country. The new scheme was announced on Independence Day. The PM [...] Continue Reading »
Housing Development Finance Corporation (HDFC) has sought to revive the market for fixed rate home loans. HDFC has decided to launch a new product where interest rates are fixed for 10 years. Under the new scheme, rates would be 125 basis points lower than HDFC’s existing fixed rate loans. The new scheme is called “Trufixed [...] Continue Reading »
The new Maharashtra Housing (Regulation & Development) Bill, 2012, came under attack from housing experts as they labeled it ‘builder friendly’. Activists, housing societies and flat buyers claimed that not only was it poorly drafted, but also failed to maintain transparency and stated that it is a watered down version of the repealed Maharashtra Ownership [...] Continue Reading »
The National Housing Bank has scrapped pre-payment penalty on dual rate housing schemes. The Reserve Bank of India, the banking regulator, has already removed pre-payment charges on dual rate schemes. Housing Finance Companies (HFCs) generally charge 2-4 per cent of the loan outstanding as early repayment charges in order to deter customers from closing the [...] Continue Reading »
State Bank of India (SBI) has revealed that it has cut its annual home loan growth target by up to 10 per cent age points. The biggest lender of the country has to revise their target due to sluggish growth in property market. The bank cut its home loan rates on Wednesday by up to [...] Continue Reading »
A day after SBI reduced home and auto loan rates and the National Housing Bank (NHB) announced reduction in the refinance rate under a special scheme for the economically weaker section, there seems to be a possibility of further cut looming in the horizon. Moreover, SBI said that it would cut interest rates on fixed [...] Continue Reading »
Shares in State Bank of India fell 1.1 percent as a result of their declaration to cut home loan rates for new borrowers. SBI cut its rate on auto loans to 10.75 percent from 11.25 percent, while cutting home loans to a range of 10.25 percent to 10.4 percent depending on the lent amount. The [...] Continue Reading »
The government focuses on austerity over growth to contain the increasing fiscal deficit, it has cut the size of interest rate subvention corpus for affordable housing loans by 20%. It has fixed the corpus at Rs 400 crore for the current fiscal, 20% less than last fiscal’s Rs 500 crore. The government runs a 1% interest subvention [...] Continue Reading »
