Now there is talk of recession being over, markets being revived and the in general people out of their cautious cocoons where they were waiting and watching before grabbing the loans at attractive interest rates. For the past few months every bank has been vying with each other to provide competitive interest rates that will… Read More »
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… Read More »
Kotak Mahindra Bank has announced a new fixed cum floating loan scheme wherein the bank will offer a rate of 8.49 per cent for the first 30 months from the date of disbursement and for the rest of the loan duration, the rate will be the applicable floating rate. The fixed rate of 8.49 per… Read More »
There is no set upper limit to the amount you can pay as down payment – it all depends on how much cash you can manage to set aside. The more you are able to pay as down payment, the lesser is the amount of loan taken from a bank, resulting in easier monthly payments… Read More »
If one buys a 500 sq.ft flat in Navi Mumbai at a cost of Rs 3500 per sq ft, the total cost would be Rs 1750, 000. At an 8.5% interest for 15 years, the interest rate would be Rs. 13,51,940. If the prices go up to Rs 5500, the cost jumps by 57% to… Read More »
Real estate appreciates in capital – particularly the land. The building generally depreciates. Recently the National Housing Bank launched the Residex, an index which will track the capital appreciation of real estate house properties. The data is updated for 3 years now. Over a period of time, the index can be used as a good… Read More »
Once the lender takes control of the property, an independent valuation is conducted with the help of an independent chartered surveyor who fixes two values for the property. One is the market value of what the property is actually worth and another is termed as the distress value, which is around 15-20% lower than the… Read More »
Recently the Reserve Bank of India (RBI) has hinted at drafting a policy to restrict banks from imposing prepayment penalty of retail loans. The proposed move follows many such complaints from loan borrowers paying EMIs based on the floating rate of interest. They feel that they are missing out on the benefits of periodical rate… Read More »
This article is a sample case study stressing on the fact that one should look beyond introductory offers to arrive at the actual total loan cost to truly compare various home loan offers from banks. One also needs to consider, will there be better or more expensive offers after a while on both the property… Read More »
The loan offer Gayathri obtained was a flat rate loan. Sanjana on the other hand, had shortlisted two reducing balance loan offers with different rest periods. As her calculations revealed the loan offer with a monthly rest turned out to be a better loan bargain than the one with an annual rest.