A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • Reasons to Buy a Home in 2018

    The real estate sector in India is witnessing a paradigm shift right now. Ever since the implementation of demonetisation and the Real Estate (Regulation and Development) Act, 2016, and the Goods and Services Tax (GST) the real estate market in the country has been quite stagnant. Even though these reforms are going to improve the sector drastically, they still have to overcome the initial hurdles which are rather time-consuming.

    This is one of the reasons why the developers and the lenders have reduced their rates - to invite prospective homebuyers and revive the housing industry in India. In fact, from an investment perspective as well, there is not a better time than the present to buy a house in India. But don’t take our word for it.

    In this article, we will explore some of the top reasons to purchase a house in India in 2018.

    • Home Loan Interest Rates Have Fallen

      Over the course of last few months, some of the leading financial institutions in India have slashed their home loan interest rates in a bid to boost their home loan portfolio. State-owned banks such as State Bank of India and Bank of Baroda reduced their marginal cost of fund based lending rate (MCLR), thus effectively bringing down the interest rate to 8.30%. Even the private lenders followed suit and slashed their respective home loan lending rates.

      Many experts now believe that from this point on, the interest rates will only rise. Private banks like Axis Bank, Yes Bank and IndusInd Bank have already signalled the change in interest cycle by hiking their MCLR by 5-10 basis points. Moreover, as the real estate sector stabilises in the coming months, the prices are likely to rise. Therefore, now is the time to enter the market and acquire a home loan at affordable rates before they move up.

    • The Implementation of Pradhan Mantri Awas Yojana

      Pradhan Mantri Awas Yojana (PMAY) is an affordable housing scheme launched by the Government of India. As per this scheme, affordable housing will be provided to the urban poor of the country, belonging to the Economically Weaker Sections (EWS), Lower Income Groups (LIG) and Middle Income Groups (MIG).

      As per the various components of the initiative, applicants fulfilling the required criteria will be eligible for grants and subsidies provided by the Central Government. One of the components that have proven to be quite popular among the people is the Credit Linked Subsidy Scheme (CLSS). Under this scheme, one can avail subsidy on home loan interest to a maximum of Rs.2.67 lakh, provided the requirements are fulfilled.

      Additionally, with the Union Budget 2018-19 right around the corner, many industry giants are expecting that the Housing for All scheme will be allocated additional funds.

    • The Real Estate (Regulation and Development) Act, 2016

      Up until the moment this Act was implemented throughout the country, prospective homebuyers were at the mercy of builders and developers. Many of them were exploited and had to go through various troubles like hidden charges, delay in the housing projects, et cetera, before finally getting their dream house.

      With no proper mechanism for grievance redressal in place, customers in the sector were growing increasingly frustrated. In addition to this, real estate sector is one of the largest contributors to the Indian economy, but it lacked organisation and proper control. The implementation of the Real Estate Act of 2016 solves that very problem, along with bringing a great deal of transparency in the realty market.

      As per the Act, a Real Estate Regulatory Authority (RERA) has been established in all the states and Union Territories, whose sole function is to deal with matters pertaining to real estate in that region. It is now mandatory for buyers and developers to register their current and future projects and disclose all the important details like layout, plan, et cetera. Non-compliance with the same will result in strict penalties.

      Furthermore, RERA also stands to serve as a mediator to settle disputes between builders and buyers. In case the buyers are dissatisfied with the developers, they can approach RERA, lodge a complaint and hold the builders liable for their incompetence. An appellate tribunal will also be established in each state whose job is to consider the appeals against the rulings of the state RERA.

      Needless to mention, the idea behind RERA is to protect the interest of homebuyers and ensure that they can go about purchasing a home confidently.

    • Tax Benefits that come with Home Loan

      One of the best things about taking a home loan (apart from paying for your dream house) is that the part of the EMI you pay can be claimed as tax deductions.

      As you know, an EMI has two components - principal and interest. The sum paid towards the repayment of principal amount of the home loan is eligible for tax deduction, as per the Section 80C of the Income Tax Act, 1961 and the maximum amount that can be claimed is Rs.1,50,000. Similarly, the Section 24 of the Act speaks about the tax benefit on the interest component of the home loan EMI. The maximum tax deduction for the same is Rs.2 lakh.

      Apart from this, stamp duty and registration fees are also eligible for tax deductions. Additionally, first-time homebuyers can claim an additional deduction of Rs.50,000, under the Section 80EE of the Act.

    • The Sense of Security

      Paying your home loan EMI every month may seem like a financial burden, but it is a commitment that is definitely worth fulfilling. After all the troubles and sacrifices that you go through, you finally get to have a place you can truly call home. It is a tangible asset whose value will only increase over time. You can also take a loan against your property, in case you need access to cash. In fact, no other investment is likely to give you higher returns that come with owning a property. That’s why investing in property is a notion that you should consider in your lifetime. It will require a great deal of financial planning. Presently, the interest rates are low and the consumer interest is protected owing to RERA. If you happen to find yourself in a position to afford a home loan, then 2018 is the year to act on it.

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    Home Loan Reviews

    • review Home Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      I had taken my Home loan a long time back and the process in getting the loan has been pretty good. The loan amount has been sufficient and the interest rate which they offered has been nominal when compared with the market rate. Their customer support team has also been helpful during the process in getting the loan.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 23, 2019
    • LIC Housing Home Loan
      "Very good"
      0.5 4.0/5 "Great!"
      I have taken one home loan from lic housing finance last fouryears , and their allover service is good , my loan amount is 19L , and rate of interest is nominal , EMI amount is 19k , tenure is 15 years , I am satisfied with lic housing finance home loan ,
      Was this review helpful? 0
      , thane
      Reviewed on Apr 23, 2019
    • Indiabulls Home Loan
      "Very Good choice for housing loan"
      0.5 5.0/5 "Blown Away!"
      I do have housing loan with India bulls, the interest is normal. I took the loan amount of Rs. 25 lakhs now I need to pay only Rs. 2.5 lakhs. They quoted me the interest around 8.99% now they revised to 9.5%, I done lots of part payment without any charges. They are very helpful and supportive on the queries handling.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 23, 2019
    • ICICI Bank Home Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken a HOME LOAN from ICICI BANK a long time back and the experience i had has been quite good. The loan amount has been sufficient and the interest rate with them had been less when compared with the other banks. There was no additional charges made by them. The customer support team of them had been very much approachable.
      Was this review helpful? 0
      , noida
      Reviewed on Apr 23, 2019
    • ICICI Bank Home Loan
      "Need transparency"
      0.5 3.5/5 "Pretty good"
      I found the interest rate is bit higher in ICICI compared to other banks, where it was 8.75% but have been charged 9%. Am still paying the premium for home loan and it was taken before 2 years. The total tenure is 20 years. My experience was good just documentation took lit longer. At the time of registration process, they failed to provide one document. There was a processing fee but they informed it will be waived off during the loan process and it does not happen.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 23, 2019
    • Punjab National Bank Home Loan
      "BETTER"
      0.5 3.5/5 "Pretty good"
      PNB HOUSING FINANCE LIMITED is the finance limited where i have applied for the housing loan, the application process was not much user friendly but they have provided with nominal rate of interest added on that the loan amount is good. The service is good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 23, 2019
    • Canara Bank Home Loan
      "gOOD SERVICE"
      0.5 5.0/5 "Blown Away!"
      I took a housing loan from the CANARA BANK .The interest rate was nominal.There are no additional charges such as part payment charges. Overall it has been a really good experience. I got the loan amount sufficient and even the tenure period was fair enough .
      Was this review helpful? 0
      , mumbai
      Reviewed on Apr 22, 2019
    • IIFL Home Loan
      "Very faster response"
      0.5 5.0/5 "Blown Away!"
      When I am looking for housing loan, IIFL immediately responded to my request . I got a very good customer response for verifying my documents . They processed the loan within one month of time . They sanctioned the loan with the average interest rate for next twenty years .
      Was this review helpful? 0
      , new delhi
      Reviewed on Apr 22, 2019
    • LIC Housing Home Loan
      "Average service"
      0.5 3.0/5 "Satisfactory"
      Previously i applied for my housing loan with LIC HOUSING FINANCE , but i felt the rate of interest they are charging too high comparing to other bank, the loan amount was sufficient it was on my requirement i got loan. Even i am not happy with their service.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 22, 2019
    • HDFC Limited Home Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have done balance transfer from other bank to HDFC limited, i have taken home loan with them recently, the reason for doing balance transfer because of the less rate of interest they are charging, they have charged me up to 9.2% previously was 8.5% it is not fixed, Still this loan is running.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 22, 2019
    • Canara Bank Home Loan
      "GOOD"
      0.5 4.5/5 "Excellent!"
      I have applied for the housing loan with the CANARA BANK the documentation process was simple and i got the loan on time with hassle free process. They have given the satisfactory loan amount added on that the rate of interest was 8.8% and using from last 2014.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 22, 2019
    • DHFL Home Loan
      "Not satifactory service"
      0.5 1.0/5 "Really Bad"
      I got home loan with DHFL FINANCIAL INSTITUTION . I am not happy with the services even the customer service response is not so good . The loan amount which they gave was good but they charge very high rate of interest . Overall it is fine experience .
      Was this review helpful? 0
      , mumbai
      Reviewed on Apr 22, 2019
    • IDBI Home Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have applied for the housing loan with the IDBI BANK the documentation process was quick and done on time. They have given the good loan amount the rate of interest was 8.7% which was a fixed. There was a processing fee, the duration for repaying is for 15 years.
      Was this review helpful? 0
      , chennai
      Reviewed on Apr 22, 2019
    • LIC Housing Home Loan
      "Should be transparent and prompt"
      0.5 1.0/5 "Really Bad"
      I have housing loan from LIC, the interest is high. My property located in lucknow but I am staying in mumbai hence for the balance transfer its very difficult they need lots of loan documents. Without proper notification they increased the interest but for the reduction they have lots of procedure and I need to pay Rs.1000.
      Was this review helpful? 1
      , mumbai
      Reviewed on Apr 22, 2019
    • HDFC Limited Home Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I took one home loan from HDFC LTD , and their allover service is good , my loan amount is 30L but this time only disbursement amount is 3L and rate of interest is 8.95% IS nominal , and EMI is 3400K rest amount after some days I take it , I am satisfied with all thing their service.
      Was this review helpful? 0
      , kolkata
      Reviewed on Apr 22, 2019
    • ICICI Bank Home Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken home loan through ICICI BANK . This is one of the good experience i had and would suggest everyone to go for it if you are looking for any Home loan., because they have the reasonable interest rate. When i had gone to apply home loan they sanctioned the amount in just few days .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 21, 2019
    • HDFC Limited Home Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      I had taken a Home Loan from HDFC LTD a long time back where the process in getting the loan was good and the disbursement was on time. The interest rate and charges which they had made has been nominal and there has not been any sort of extra charges which they had made and the loan is still running.
      Was this review helpful? 0
      , new delhi
      Reviewed on Apr 21, 2019
    • LIC Housing Home Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      LIC HOUSING FINANCE has also offered me a home loan. The process was quick and I got the loan on time. The rate of interest is and there were processing charges as well both are very nominal compare to others in the market . The tenure period is 10 year and it is sufficient .
      Was this review helpful? 0
      , vadodara
      Reviewed on Apr 21, 2019
    • review Home Loan
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I have SHAMRAO BANK i have took home loan from this bank . Their service is better, Overall the whole loan process was easy and hassle free. Only the rate of interest were high with this bank. The processing fee is nominal with this bank . And the loan amount is not satisfactory .
      Was this review helpful? 0
      , pune
      Reviewed on Apr 21, 2019
    • HDFC Limited Home Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      HDFC LIMITED is the bank where i have taken the housing loan the loan amount they have offered was good and satisfactory added on that the documentation process was simple and pretty simple documents. I got the loan within one day, the rate of interest was nominal.
      Was this review helpful? 1
      , bangalore
      Reviewed on Apr 20, 2019
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