'As our per capita income increases and various demographic segments emerge, the need for various kinds of protection and risk covers will become even more explicit.'
When Jabalpur resident Mahavir Ojha received Rs 80 lakhs (Rs 8 million) from selling an ancestral property, he decided to part-pay his housing loan of Rs 50 lakhs (Rs 5 million).
Bankers see stable interest rates in near future but are worried about the spiralling global oil prices that is exerting pressure on domestic prices and exchange rate.
India was among those countries that registered a very low housing loan penetration rate with the outstanding housing loan to the GDP being just 3% as against 51% in the United States and 54% in the United Kingdom.
Banks enjoyed an expansion in Net Interest Margins (or NIMs) as well as in credit demand through the 2022-23 financial year (FY23). The credit expansion was because economic growth continued to recover from the Covid-19 years, and indeed, second half GDP growth surprised on the upside. The NIM expansion was because banks raised lending rates immediately (in many cases automatically due to floaters) as the Reserve Bank of India (RBI) hiked policy rates, and only started raising deposit rates late into the fiscal.
Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj, tells Business Standard that high prices and hardening of mortgage rates may act as a dampener.
Banks may have to increase the rate of interest for housing loans if more capital was required for the purpose, K M Shet, chairman and managing director of Syndicate Bank said on Thursday.
Mortgage lender HDFC Ltd on Friday hiked its lending rate by 50 basis points hours after the Reserve Bank raised the benchmark interest rate to tame inflation. The move would increase EMIs for housing loans by the firm. "HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 50 basis points, with effect from October 1, 2022," the country's biggest housing finance company said in a statement.
A pre-approved housing loan is essentially an in principle sanction given by a bank for a particular loan amount. A fairly robust process is followed by the banks to determine the loan amount.
Smart home loan is a product which combines the home loan with your current or savings account.
Pranjal Kamra, CEO, Finology Ventures, lists seven efficient ways to cope with the rise in EMIs even as you balance your monthly budgets.
Your guess is as good as mine. Unless something changes dramatically, the expectation that loan interest rates will be fixed in a more transparent manner, is likely to take a long time to realise.
Teaser loans may be on their way out with Canara Bank and Union Bank of India opting to withdraw the scheme in anticipation of a high interest rates.
Harshala Chandorkar of CIBIL on why you must not delay your credit card payments
From buying a new home or property to renovating or extending an existing home or property, the home loans market has been witness to the arrival of more customised packages.
Rupee Times discusses some of the uncommon reasons for rejection of your loan application.
'Starting an SIP now and continuing with it is likely to translate into high returns over the long term.'
Here's why you must read your home loan agreement with your home loan lender carefully.
The country's largest lender State Bank of India on Monday said it has reduced interest rates on home loans by up to 10 basis points (bps) and is offering loans starting from 6.70 per cent rate. The new rates are based on loan amount and CIBIL score of the borrower, and are available till March 31, 2021, according to a statement. The bank said the home loan interest rates will start from 6.70 per cent for loans up to Rs 75 lakh and 6.75 per cent for loans in the range of Rs 75 lakh-Rs 5 crore.
ICICI Bank has cut floating benchmark lending rate for home loans by 50 basis points to 13.25 per cent and deposit rate by 25-50 basis points.
On the extent of cut in lending rates, the SBI chief said 'it is difficult to say at this point of time' but indicated that it would not be less than 25 basis points. SBI earlier reduced the benchmark PLR by 75 basis points to 12.25 per cent with effect from January 1. Bhatt is in the capital to attend a meeting of state-owned bankers called by external affairs minister Pranab Mukherjee, who is also holding the finance portfolio.
Under the limited period offer applicable to new floating rate customers, the lender would charge 9.75 per cent for loans up to Rs 30 lakhs and 10.75 per cent for bigger loans. Prior to the special period offer announced today, HDFC was charging 10.25 per cent for loans up to Rs 20 lakhs (Rs 2 million) and 11.25 per cent for bigger loans.
'If something unfortunate happens to an earning member, the family loses the crucial income which would have gone towards paying off debts, meeting the cost of children's higher education, or towards the upkeep of elderly parents.'
Direct tax expert Vikas M Gandhi replies to readers' queries on tax and investments.
But don't buy this product blindly! Here's what you must know before you sign on the dotted line
Housing finance major HDFC on Monday reported a 16 per cent growth in standalone net profit to Rs 3,700 crore for the January-March quarter, helped by record loan sales on the back of benign interest rates and the resultant fall in cost of funds along with the near-total repayments that culled provisions and credit costs. For the full year, the company, which is working on a reverse merger with its banking subsidiary, has booked a net profit of Rs 13,742 crore, up from Rs 12,027 crore in FY21, vice-chairman and chief executive Keki Mistry said on Monday in an earnings call with analysts. On a consolidated basis, net profit for the quarter surged 21.6 per cent to Rs 6,892 crore on-year and for the full year it jumped 21 per cent to Rs 22,595 crore, Mistry said and guided towards better days.
Home First Finance will be answering readers' home loan queries. Mail your queries to getahead@rediff.co.in with the subject line 'Home Loan Query' and we will have your queries answered by Home First Finance.
The country's largest housing finance company HDFC Ltd will merge with the country's largest private sector lender HDFC Bank, according to a regulatory filing. The scheme of amalgamation will be subject to various regulatory approvals, including from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi), HDFC Bank said in the filing on Monday.
This will ensure that should a critical illness (such as stroke, organ failure, heart ailment, etc.) strike you affecting your earning capability than you at least dont have to bother about your home loan liability, says personal finance expert Harsh Roongta.
'India has formed tremendous resilience and still a strong growth.'
Six public sector banks have been identified as having a particularly problematic housing loan portfolio.
If you had opted for floating rate home loans in 2003 and have recently switched to fixed rates then now is the time to revisit your decision.
Wealth tax is exempt upto Rs.1500000/-. Any excess wealth will attract tax at the rate of 1 per cent of the net wealth. This rate is irrespective of the slab rate of income tax in which you fall, says tax expert Vikas Gandhi.
The average age of person/s having own residential homes has come down from 42 in 2000-01 to 31 years in 2006-07? Do you know how this has become possible. Tax sops on home loans is the biggest catalyst to begin with.
There can be as many as six co-applicants in a joint loan.
The country's largest private lender HDFC Bank is planning to facilitate a shift in its payments module from the existing core banking platform. This would ensure minimal payments downtime, even if core banking is not available. "This 15-month project will be followed by hollowing the customer-master modules from its existing core systems. "It will ensure a single system of record for customers across various products," said Sashidhar Jagdishan, managing director (MD) & chief executive officer (CEO), in the annual report for 2021-22.
Monthly systematic investment plan (SIP) flows into India have held steady above Rs 13,000 crore in 2022-23 (FY23) in the face of markets delivering muted returns in 18 months. However, it is not a rose-tinted view when it comes to viewing new SIP registrations and the cessation of existing ones. The ratio of SIPs stopped as a percentage of fresh SIPs registered (called SIP stoppage or closure ratio in industry parlance) stood at 56 per cent in the first 11 months of FY23, compared with 41 per cent during the same period of 2021-22 (FY22).
If you default, the bad behaviour stays in your credit report for a very long time
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