Home Loans

The Apex bank of India, RBI has eased the norms to get the fund for low-cost housing by permitting banks and other financial institutions to extend the loans against long-terms bonds of infrastructure.

However, earlier Reserve Bank of India barred the lenders from providing the loans against the infrastructure bonds on long term basis by other banks. In further addition from the circular of Central Bank, “These loans should be subject to a ceiling, like; Rs. 10 lakhs ((approx. $16,170) per borrower, whereas the tenure of loan should be within the bonds maturity period”.

In July, Reserve Bank of India (RBI), had allowed the long term bonds raised by banks for infrastructure lending to be exempted from mandatory reserve requirements.

Housing loans

Taking the home loan can be the biggest financial decision of life, so clear understanding of terms and conditions and as well as comparison of various home loan offers is very essential because it help to choose the best offer among different loan providers. Some factors such as; rate of interest, processing fee, faster process and few other factors one should consider before deciding on a financial institution or a bank to avail the loan from. It is recommended to do comparative analysis on every factor before selecting a particular lender or financial institution or bank. Some factors are below mentioned;

Loan amount:
All the banks or lender have different eligibility criteria for assigning the loan it can be in terms of your income or percentage funding to value of the property. In simple words if you are planning to take 40 to 50 per cent of the property value and your monthly income is far more than the required EMI, so don’t worry you can get the loan easily. But in case if you need 60 to 80 per cent of the total property cost and your income is not so more, so banks can check with your financial status. In general banks can lend up to 80 per cent of the property cost.
Compare Interest rates:
Before taking the interest rate it is recommended to compare the interest rates and processing fee of different banks or financial institutions. As an intelligent person, one should choose the bank or lender which is offering the lowest rate of interest with the track record of offering lower interest rates and processing fee in last 10-15 years.
Property listing:
As a prospective buyer, an individual should draw up a list of banks, which is approved or shortlisted by property developer. Chances of getting the loan from those banks which approve the property are more than the banks that doesn’t approved the property. Getting this list is not big task because an individual can find this list on the website of builder.
Processing fee & other charges:
This is one time fee, but still the matter of concern, before finalizing the decision it is recommended to compare the loan processing and other legal fees while comparing the interest rates. The banks, who give lowest rates, can be considered as the ideal bank for loan.
Procedure and approval time:
In India, most of the banks take 3 to 8 days for the loan approval and other formalities, customers should ask the bank about their procedure and approval time and after that you should proceed with bank according to your comfort. The banks who ask you to come to branch to complete the process should be avoided because as professional it s not good thought to take 3 to 4 days holiday for loan procedure.
Flexibility of EMI and payment dates:
Some banks have fixed dates for the payment of FMI and as customer if you are comfortable with that date, so you can go ahead. Make sure your bank gives you flexibility for choosing the right EMI date.
Real the legal documents and final agreement:
Always, real the legal documents and final agreement fully, do not make your decision in quick time, take time and decide the right thing. Be sure that there are no more hidden charges or clauses.
Before going with any particular bank compare the bank and lenders rate and other conditions on above mentioned points and at the end you will be end with right deal. It is recommended to consult with at-lest four to five banks before closing the deal. Buying a home or closing the home deal may not be big deal, but the whole process is a very big deal.

Properties in Kalyan, Dombivli

In present there are two best way to maximize you ROI is to either keep your eye on stock market or invest in real estate, But in first one you need to take a lot of risk, where as in real estate all you need to do just little research and right time for investments. Real estate market of Mumbai is driving the real estate market in all over the country. Its dream of every Mumbaikaar to own a home, where they can live, but due to high cost it was difficult. According to real estate developers if you want to have the apartment in Mumbai, so you need to have good amount of money, but still thee is chance for middle class if you are ready to take the property in other areas such as; Property in Kalyan and Property in Dombivli.

Property in Kalyan and property in Dombivli are quite affordable with other basic amenities and features. The price range of property in Dombivli and Kalyan start from Rs. 20 lakh to 75 lakh with the options of studio apartments, 1BHK, 2BHK and 3BHK apartments. In Mumbai the demand of residential property is more than the commercial and in this scenario the property in Kalyan and property in Dombivli are playing the vital role to cater the need of housing units. According to real estate developers Dombivli and Kalyan regions soon notice the price rise for real estate market.

How to deal with finance?

If you wish to own a property in Kalyan and property in Dombivli, and you are finding the budget your budget short, so you can take the loan from banks or financial institutions because they provide loan easily with fast process. In present it’s easy to get the home loan in comparison of past, so you are free to take the advantage of RBI norms and policies. Real estate market of Mumbai will soon show the more improvement because of some new policies due to housing for all campaign. Even now day’s real estate developers are launching the new project in affordable range, so that everyone can own the home in affordable price. In Mumbai real estate market the demand for luxury property is less and supply is more, whereas for demand for affordable housing is more and supply for same is less.

The property in Kalyan and property in Dombivli, are currently in development stage and is the built up areas of greater Mumbai. The neighboring areas of Dombivli and Kalyan are also some of the most sought after by investors. Some of the developers such as; Saisatyam Group, Gajra Group, Dynamic Buildtech Ltd, Nirmal Lifestyle, Ashapura Constructions and Lodha Group are offering the apartments in the range of Rs. 25 to 30 lakh, so it’s pretty good news for those who want to own a property in Kalyan and property in Dombivli.

SBI reduced its home loan rates

India’s largest public bank, State Bank of India on Tuesday revised interest rates on home loans. Now SBI will offer uniform interest rate on home loans from effective August 26. SBI has cut interest rate by 5-15 bps on home loans.

For the home loans up to Rs 75 lakh, the interest rate will be 10 basis points above the base rate and for home loans of above Rs 75 lakh the interest rate will be15 bps above the base rate.

Earlier, on December 20, 2013 the rate of interest on SBI home loans were reduced with a separate interest rate structure that was also rolled-out for woman borrowers 10.25 per cent ((for loans above Rs 75 lakh) and 10.10 per cent (for loans up to Rs 75 lakh) too, a senior official with SBI said.

Mr. G S Sandhu, finance secretary said, the central government is planning for new interest subvention scheme, to encourage affordable housing, which will meet part of the buyer’s home loan burden. He said that according to scheme, there would be interest subvention up to 5% for loans up to Rs 5 lakh, while at present the interest subvention is available only on loans up to Rs 1 lakh. Interest subvention refers the subsidy that government provides the borrower, which makes the discount given by the lender.

Sandhu said that a blueprint on affordable housing plan is being prepared and this time the government is clear because it wants time-bound results. For affordable housing the new government had big plans and vision. The more burdens falls on public sector banks and real estate investment trusts could be a game-changer for the sector.

Senior executive with one of public sector bank said, increasing the loan limit to Rs 5 lakh will immensely increase the utility of these loans because this will enable the underprivileged to take benefit of low-cost housing schemes, which will be undertaken by state governments.

SBI officials said, it has now been decided to offer uniform interest rate on home loans, irrespective of the loan amount effective from August 26, 2014.