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I am holding this HDFC LTD housing loan for a long time. Interest rate offered by them is as per the market rate. Processing fee is zero. Documentation process was very fast. Customer service was good. It would be great if all the banks follows HDFC LTD Principle as it is that good. Both HDFC LTD and customer were made for each other.
07:01 PM - Jul 04, 2015
The interest rate offered was really good and the charges were also waived off in my home loan process with Bank of Baroda.The draw back was they take long time to process the loan because it took around 1.5months to get the loan.I would suggest it will be better if they reduce the processing time.
06:34 PM - Jul 04, 2015
The Union Bank of India dint provide me the home loan which I applied with them because of that the property which I finalized was the 40 years old property.I can say that they can provide the loan because the property resides in the prime locality while other private sector banks are okay to provide the funds , But Union Bank of India failed to done that.
06:25 PM - Jul 04, 2015
The major reason for not availing the housing loan was there was no proper response from Standard Chartered Bank. Interest rate and processing fee was comparatively higher than other banks. It would be great if they come up with good plans and schemes. The only thing was the branches were very less in Pune. No offers were provided.
07:00 PM - Jul 04, 2015
By the month of march , I got the call from the Union Bank of India regarding about the home loan.There are some of the mis communications with them after they collected the requirements from my end.I would like to suggest that there should be regular follow up with the customers till the end of the process.
06:33 PM - Jul 04, 2015
I have my home loan with SBI. The process for this loan did not take much time. The rate of interest offered was of 9.7% and whenever there is a cut from RBI I get a message informing me about the difference of rate. I guess they very much follow RBIâ??s rules. They need improvement in their customer services.
06:13 PM - Jul 04, 2015
I availed home loan from Canara bank, it was a good experience with them. I have an account with Canara bank. I had a good communication with the manager. So the interest rate is normal and processing fee is reasonable. Many transaction was done with Canara bank only. The documentation was easy. Within a month I got my home loan amount sanctioned.
06:53 PM - Jul 04, 2015
The property was not finalized so the home loan application was closed from standard chartered bank.But the service is good. There was no information about the chargers as my application was closed in the initially stage itself.It would be good if they improve to give proper response to the customer.
06:33 PM - Jul 04, 2015
The project I was looking for was not with Indiabulls and I was sort off not interested. Thatâ??s how I did not go with them for my home loan. The services were and reasonable and they had a good communication. The rate of interest was good.
06:12 PM - Jul 04, 2015
It is an excellent experience with SBI Bank for the home loan. The executive were responsive and also they were very helpful. It took some time for the documentation process as it was delayed form my end. The best part about this bank is they are little lenient about the late payments and also in case of any fine charges they are able to reimburse the amount back. One thing which I would suggest is the bank should not collect the signature of the government employee in order to approve the loan for the rural areas.
06:37 PM - Jul 04, 2015
I didnâ??t get this loan with DHFL because there is no loan transfer options available and the charges and interest rate offers were also not as exiting compared in the market rates.The customer service provided was average and I feel they can reduce the interest rate and offer a best deal for the customers.
06:32 PM - Jul 04, 2015
I got the home loan with the IDBI bank.The rate of interest was 10.0% and its the floating.So , According to the change in the Repo rate it might be got reduced and increased.The processing charges are waived off.The services are really better with them.Continuous followup has been done nicely.
06:02 PM - Jul 04, 2015
Are legally adult enough to handle it
Have still got it
Get a regular pay check
Make more than a basic buck
EMI limited to about 50%
of monthly income
Loan capped @ 75% - 85% on property value
EMIs of other loans lower
Making your spouse a co-applicant
Choose longer tenure loans of up to 20 - 30 years
Alternatively add your parents as co-applicants
|Interest Rate (Monthly reducing balance)||10% - 10.5%|
|Processing Fees||0.5% of Loan|
|Loan Tenure||1 year to 20-30 years|
|Partial pre-payment Charges||Nil|
In order to support its ‘housing for all by 2022’ project, the government has announced that it will offer a wide range of incentives to people from economically backward families including a subsidy of 6.5% on home loan interest rates. The government hopes that these incentives will motivate people from economically weaker families to opt for home loans and construct their own houses. Prime Minister Narendra Modi chaired a meeting of the Cabinet Committee on Economic Affairs (CCEA) in which he cleared certain changes to ‘housing for all by 2022’. These changes paved the way for providing interest subsidy on housing loans to poor people.
The poor people in urban areas can enjoy economic benefit to the tune of Rs 2.30 lakhs each, if they opted for a home loan with a tenure of 15 years. Also, the income limit for low income category in urban areas has been doubled by the government to 2 lakhs per annum for availing benefits under this scheme.
2nd July 2015
The Credit Information Bureau of India Ltd. (CIBIL), has reported that there has been a substantial increase in the demand for home loans and credit cards in India. The Senior Vice President of the Customer Relations department of CIBIL, Harshala Chandorkar, disclosed that the growth of home loans has been triggered by an increase in the demand for the loans in the cities of Delhi, Bangalore, Mumbai and Pune.
In the 1st quarter of this year, around 3.9 lakhs new home loans were processed and it is estimated that the number will continue to grow exponentially as the year progresses. The delinquency on has decreased as well, by 0.57% in the same quarter, in comparison to 2010 when it was 1.06% by end of the year.
25th June 2015
On Tuesday, India’s apex bank, the Reserve Bank of India (RBI) slashed its repo rate again by 0.25%. In response, leading Indian lenders including SBI and Allahabad Bank, have also acted swiftly and cut their own base lending rates. SBI has affected a cut of 15 basis points to arrive at a lending rate of 9.70%, while Allahabad Bank is set to lower its lending rate by 30 basis points. Alongside these two, Dena Bank and Punjab and Sind Bank have committed to individual cuts of 25 basis points each, while other influential banks including ICICI, HDFC and Axis Bank are expected to follow suit. While this move from RBI is expected to have a positive long term impact on India’s economic growth, the immediate reaction will be lowering of EMIs pertaining to loan products, including Auto, Retail and Home Loans.
11th June 2015
Customers do not decide on buying a house depending only on the interest rate offered on home loans. Instead, their decision is based on prevailing circumstances and events that affect them. They are aware of the fact that various financial institutions and banks offer a variety of options and plans through different home loan schemes. Other factors that will have an impact on the customers include loan application process, time taken for approving loan, terms and conditions of the loan etc.
Financial institutions should be able to determine choices of customers well in advance to have a competitive advantage and to establish a solid customer base. By considering these factors, financial institutions can sustain in difficult market conditions.
29th May 2015
The fiscal year 2015 witnessed a rise in home loan disbursements. The housing finance sector has seen a 17% growth in the first nine months of 2014-15. The overall economic state has improved, giving borrowers more disposable income, while the interest rates have been reduced, and thus making house purchases affordable. Also, with the overall prices of property increasing marginally, purchasing homes on the boundaries of the metros is feasible. During the last fiscal year, housing finance companies reported capital infusions of Rs 1,780 crore according to the IRCA, showing that investment in the housing sector has risen.
HDFC’s average home loan last fiscal increased from 22.1 lakhs to 23.3 lakhs resulting in a 16% growth in individual loan disbursements. HDFC and Indiabulls Housing lowered their lending rates to 9.9%, and Sundaram BNP Paribas Home Finance reduced to 9.95%.
The center is also encouraging affordable housing by providing tax deductions on interest paid, and proposing to increase the tax rebate on home loans. The ICRA has predicted that this would boost the housing loan growth to 20-22% this fiscal year.
20th May 2015
With a sluggish credit growth and a fear of business losses, some of the private sector banks have lowered their interest rates by 20 to 25 basis points. Axis Bank led the group by introducing a base rate of 9.95% reduced from 10.15%, effective from April 13. Lakshmi Vilas Bank has also announced a base rate cut of 15 bps lowering its home loan interest rate to 11.10%. Financial institutions like City Union Bank and Repco Bank are also expected to follow suit. The rate cut expected from City Union Bank is around 10 to 25 basis points.
With bigger banks like HDFC and ICICI lowering their base rates, smaller financial institutions have been forced to make this move to sustain their businesses. Earlier HDFC had reduced its base rate by 15 basis points to 9.85% from 10% and ICICI bank had lowered its base rate by 25 basis points to 9.75%. These base rate cuts have been reported to have stemmed from the two repo rate cuts of 25 bps each announced by the Reserve Bank of India at the beginning of this year.
23rd April 2015
The Maharashtra Government announced that it would be providing home loans to all its employees amounting between Rs 20 lakhs to Rs 50 lakhs, keeping in mind the skyrocketing housing prices in the urban areas. The bank said that the loan amount will be determined based on the grade of the staff with an eligibility criteria attached. Government employees should have completed five years of service along with the same number of years left to qualify for the home loan.
If both the spouses are Government employees, then the home loan will be given only to one of them with the new property being bought in the name of the individual opting for the house loan. The sixth pay commission has broken down the cities in Maharashtra into two categories, ‘X’ and ‘Y’ depending on existing property rates. For individuals residing in ‘X’ cities, the home loan amount would be Rs 50 lakhs, in ‘Y’ cities it would be Rs 30 lakhs and for the remaining areas it would be around Rs 20 lakhs.
16th March 2015
The Reserve Bank of India cut repo rate by 25 basis points bringing the policy repo rate to 7.5% from 7.75%. This second rate cut in the last two months is expected to make home loans cheaper. This move comes days after the release of Union Budget wherein the government had planned to collaborate with the RBI to target inflation. The RBI rate cut is likely to give a boost to the economy while also bringing down the loan EMIs. This cut in the policy key rates will lead to a reduction in lending rates by banks and also drive the banks to drop interest rates on home and car loans. RBI quoted its pledge to exercise fiscal responsibility and be pre-emptive in its policy for monetary accommodation as the main reasons for the rate cut.
With the rate cut leading to lower EMIs, this might well be the right time to apply for a home loan if it is on your agenda. Check out various home loan options on BankBazaar.com to plan your finances accordingly.
6th March 2015
Plot loans offer lower ‘loan-to-value’ than home loans which means that the interest paid out will be higher. Loan-to-value offered by home loans is 80-85 per cent of property price but plot loans offer only 60 per cent of the property price the rate of interest charged on a plot loan is usually at par with the rates applicable to a home loan. In case of plot loans, a customer is not eligible to claim income tax deduction for principal repayment or for payment of interest.
There are many restrictions and conditions placed on plot loans by the bank. Banks such as HDFC restrict the loan amount based on the location of the plot especially if it is located in the outskirts of the city. Also, plot loans are not available for purchasing land for agricultural purposes. It can be used only for buying a plot for residential use, investment purposes and so on. Banks normally have other restrictive clauses that require the borrower to finish construction within a stipulated period of time.
20th February 2015
Those who’ve done it will be well aware that searching for the right home loan is a time consuming process. Keeping that in mind, the Confederation of Real Estate Developers’ Association of India, better known as CREDAI, has taken a unique initiative to simplify that task for Chennai residents by organizing a Home Loan Mela this February. The event, which will take place between February 13th to February 15th at Vijay Mahal in Pondi Bazaar, is being organized to help bring customers a step closer to building their dream house. The Home Loan Mela will feature some of the country’s leading banks like ICICI, SBI, Axis Bank, HDFC, Punjab National Bank, Karur Vyasya Bank, Oriental Bank of Commerce, Sundaram BNP PARIBAS, India Bulls, LIC Housing Corporation and more. Customers can benefit not only from the wide range of choices available for home loans but also gather valuable information pertaining to home loans under one roof at the Home Loan Mela this February.
12th February 2015
As a welcome sign from RBI for banks to reduce rates, norms have been eased for applicants seeking home loans for low-cost housing. This means you can now easily get home loans with minimal conditions. RBI has also allowed banks to provide loans in return for long-term infrastructure bonds as security. However, this new rule and minimal conditions for home loan does not apply for home loans in case the long-term infrastructure bonds is in the name of other banks.
In short, getting to the actual amount of home loan disbursed, one can expect a maximum amount of Rs 10 lakh. The loan repayment period is fixed based upon the time duration of the maturity of the bonds which is pledged as a surety for the low cost home loan. This new rule comes on the back of the RBI’s recent decision to allow money lending against long-term infrastructure bonds raised by the banks. Further, the loans against such bonds do not have to comply with the mandatory reserve requirements.
1st December 2014