To Fix Or To Float      
In March 2000, the interest rates on home loans were about 14%; which started falling quite steeply. By the last quarter of 2003, the interest rate (floating) on home loans fell to 7%. Again the loan interest waves have splashed to a high of around 10.00% (floating rate of interest) in January 2007. This hike is dramatic; considering that it is a jump of 3.50% since the historic low of 7% reached in 2003.
 
Want to get married? Pay your bills on time      
Credit bureaus are independent companies which collect the bill payment records of all the customers of various lending organisations like banks, credit card companies, housing finance companies as well as consumers of telecom companies (or consumers of any services which involve credit and/or periodic payments) and even keep track of any bankruptcy proceedings or alimony payments ordered by the courts.
 
Real Trouble      
The story is getting gloomier for the real estate sector. For almost two years, the Reserve Bank of India (RBI) has been indicating that the real estate sector is 'overheated'. The apex bank has also increased the reverse repo rates and more recently, the CRR (cash reserve ratio) by 0.5 per cent (50 basis points). And if that was not enough, the FM recently asked banks to go slow on realty loans and 'lend more' to finance the country's gross domestic growth. Says Niranjan Hiranandani, Managing Director, Hiranandani Constructions, 'The step is definitely retrograde in nature and will lead to more inflation.' He feels the lower middle class will get adversely impacted because of this decision. Today, 80 per cent of home loans are less than Rs 5 lakhs and rate hikes impact them the most.
 
Getting Closer Home      
The Reserve Bank of India (RBI) and, more recently, the Central government has 'advised' the banks in their own capacity to go slow on the realty sector. The year began with the government allowing 100 per cent Foreign Direct Investment (FDI) in real estate, but it ended with the same government asking banks to lend less to the realty sector. Besides, the RBI has been making all the noises about this sector being 'overheated' for almost one-and-a-half years. And finally, the government and RBI seem to be concurring.
 
Should I prepay if I am half way through my loan tenure      
A common question asked around coffee machine these days is; should I prepay my home loan? The trigger for this question is quite obvious. Most home loan borrowers in the last 5 years have taken floating rate loans and banks have increased interest rates on these loans three or four times in the last one year itself.
 
On wives and girlfriends      
Recently, a good friend of mine was complaining about the behaviour of her bank ever since she took a home loan from them. Though the home loan was fixed, the bank promptly increased her interest rate (even though she had signed a 'fixed' rate contract) when the rates went up. And to top it all, when she called up to enquire about the change, she was curtly told to read the loan agreement where the bank had clearly reserved a right to increase the 'fixed' interest rate. Grumbling about the bank's behaviour, she happened to mention the sharp contrast in their behaviour from the time when she had applied for the home loan. As both she and her spouse work at the middle management level for a leading MNC and individually draw a six-figure pay packet per month, the bank actually went overboard when she applied for the home loan. She confessed that the sales person from the same bank, not so long ago, was wooing them and willing to answer every query of hers to make her a client. All in all, a very satisfying experience, as she did not have to move out of her office even for a minute during the entire loan process.
 
Credit Policy: Home loan interest rates likely to remain stable      
Despite the Reserve Bank of India's (RBI) money tightening measures, home loan and personal loan interest rates are likely to remain flat. Most bankers expect interest rates to remain stable. Banks have to keep a portion of their cash reserves with the RBI as per a ratio called the cash reserve ratio (CRR). Recently, in its quarterly review of credit policy, the RBI increased CRR from 6.5% to 7%, which effectively means banks have to keep a larger share of their reserves with RBI. Despite the initial fears, it is not expected that the RBI move will jack up interest rates.
 
Interest Rate Hike-How to Cope      
The monthly budgets of more than 3 million households have gone for a toss due to the relentless rise in housing loan rates over the last 24 months. As people struggle to pay the increased EMIs they also worry that rates are set to rise further and will thus put even further strain on their already stretched monthly budgets. For somebody who took a Rs. 10, 00,000/- 20 year home loan at the bottom of the interest rate cycle the EMIs have gone up from Rs. 7,600/- to Rs. 10,399/- (See Example). Inspite of the recent increases in monthly incomes this huge increases in EMI coupled with high inflation rates on other items of daily living is beginning to take its toll on the monthly disposable incomes and savings.
 
How do I get the cheapest interest rate on my home loan      
Home loan applicants often ask which bank offers the lowest home loan rates. While banks keep publishing their interest rates for various loan products from time to time, there is more to the published interest rate than meets the eye. Two loan applicants to the same bank may get different rates. There is no such thing as a 'standard rate' for a particular bank. The rate published by banks is a 'rack rate' on which significant discounts are usually available.
 
MCHI Solutions to your Home Loan Queries      
Home Loan eligibility can be enhanced by clubbing the incomes of relatives or kins. This is one of the main reasons why one would want to opt for a joint home loan. Clubbing of incomes of relatives: Eligibility is also calculated by clubbing your income with your kin's. All banks allow clubbing of the spouse's income to work out the loan eligibility. In such cases, they insist on making the spouse as a joint borrower (or co-borrower).
 
« Start Prev 1   2   3   4   5   6   7   8   9   10   11   12   13   14   15   16   17   18   19   20   21   22   23   Next  End»