A home loan to suit your pocket

From women-friendly in­ter­est rates to spe­cial loans for the low in­come cat­e­gory, banks had in­ter­est­ing of­fers for ev­ery­body this fes­tive sea­son

HT Estates - - FRONT PAGE - Bienu Verma Vaghela

So what did the banks have to of­fer this fes­tive sea­son? Here is an up­date on the var­i­ous home loan schemes of­fered by var­i­ous banks and hous­ing finance com­pa­nies this fes­tive sea­son. First things first, the prop­erty pro­posed to be fi­nanced should be ei­ther in the sole name of the woman bor­rower or she should be the first owner in case of joint ownership. This fes­tive sea­son has brought an ic­ing on the cake for women bor­row­ers with the big daddy of home loans (SBI) of­fer­ing home loans 10.10% to women bor­row­ers whereas it is 10.15% for oth­ers. Cur­rently, spe­cial rates for women are be­ing of­fered by SBI and ICICI bank.

Up­beat about the im­pend­ing fes­tive sea­son, the biggest PSU bank SBI will of­fer home loans above ₹ 75 lakh at 10.15% (10.30% ear­lier) for male bor­row­ers and for loans below ₹ 75 lakh, the ex­ist­ing rate will con­tinue. As far as the biggest hous­ing finance com­pany is con­cerned, HDFC is of­fer­ing loans of up to ₹ 75 lakh at 10.15% under a ‘Win­ter Bonanza’, which has been ex­tended under the new scheme.

An­other big na­tion­alised bank (PNB) has launched a ₹ Fes­ti­val Sea­son Bonanza of­fer on re­tail loans. Under the scheme, home loans up to ₹ 2 crore will be avail­able at the bank’s base rate of 10.25%. Fol­low­ing suit, other PSU banks (Ori­en­tal Bank of Com­merce) has re­duced home loan rates for amounts above ₹ 75 lakh to 10.25% upto March 31, 2015. Under this scheme the pro­cess­ing fee and doc­u­men­ta­tion charges are nil.

Be­sides th­ese at­trac­tive in­ter­est rates on of­fer by var­i­ous banks and HFCs, there are many friendly of­fers avail­able in the mar­ket. An EMI waiver scheme by a private sec­tor bank (Axis Bank) is called Happy End­ing Home Loan. This scheme of­fers a waiver of last 12 months EMI if the bor­rower has a clean record of re­pay­ments on a min­i­mum 20-year home loan. To be el­i­gi­ble, the bor­rower must have ser­viced

the loan for at least 15 years after con­sid­er­ing all par­tial pre­pay­ments, if any.

And if your bud­get is not big enough, banks have some op­tions for you too. Known as Asha Home Loan, which is ideal for low in­come group seg­ment, a per­son can avail a home loan in the range of ₹ 1 lakh to ₹ 25 lakh where your min­i­mum com­bined in­come should be ₹ 8000 and the area of the prop­erty should be around 325 sq ft or more. Loans for th­ese prod­ucts are avail­able in both the fixed and float­ing op­tions.

Dual home loan rates are also

on of­fer where the rate of in­ter­est re­mains fixed for ini­tial few years and there­after gets con­verted to nor­mal float­ing rate of in­ter­est for the re­main­ing ten­ure of the loan.

Many ma­jor private sec­tor banks and HFCs have come up with their own dual rate of­fer­ing fixed rate of in­ter­est for a ten­ure rang­ing be­tween 1 – 10 years. Here pre­pay­ment charges are payable on dual rate loans when they are in the fixed rate stage of the loan. So, for bor­row­ers who in­tent to pre­pay the loan be­fore the end of the fixed ten­ure this as­pect may be looked into.

For self–em­ployed or prac­tis­ing pro­fes­sion­als, offset loans are a good so­lu­tion. Here in ad­di­tion to the home loan ac­count, the bor­rower gets a linked cur­rent ac­count with the same bank. He can then de­posit or with­draw from this cur­rent ac­count just like any other cur­rent ac­count. Ev­ery month when the loan in­stall­ment is paid, in­ter­est at the ap­pli­ca­ble rate is cal­cu­lated on the ag­gre­gate prin­ci­pal out­stand­ing after tak­ing into ac­count the bal­ance, if any, in the linked cur­rent ac­count.

The ad­van­tage of this prod­uct is that it al­lows you to use both your tem­po­rary and per­ma­nent cash sur­pluses to re­duce your in­ter­est li­a­bil­ity on your home loan and at the same time give you the flex­i­bil­ity of with­draw­ing the sur­pluses for other uses as and when you may re­quire. Th­ese loans are gen­er­ally priced higher than reg­u­lar float­ing rate home loans.

Don’t you think you had am­ple choice be­ing of­fered this fes­tive sea­son? Ac­tu­ally you were spoilt for choice.


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