FINANCE TIP OF THE DAY
Can you afford your loan?!
Know the quantity of loan you can afford. The banks may sanction loan based on your income but you should look at your monthly expenditure and see if you can afford the maximum that banks offer. As a thumb rule, remember not to let your credit exceed 40% of your income!
New home loan scheme from ICICI bank
ICICI Bank has announced a fixed-cum-floating home loan rate scheme under which the bank will offer loans at a fixed rate of 8.25 per cent for the first two years, irrespective of the amount, and from the third year onwards, the rate will be the applicable floating rate and will vary depending on the amount of the loan.
After a period of two years, the floating rate on loans up to Rs 20 lakh will be the then prevailing FRR minus 4 per cent, for loans between Rs 20 lakh to Rs 50 lakh-FRR minus 3.5 per cent and for loans above Rs 50 lakh, the interest rate will be FRR minus 3 per cent.
The new scheme is available for loans sanctioned between December 2, 2009 and January 31, 2010. According to a release from the bank, the first disbursement of the loans should be availed before March 31, 2010.
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