Home Loans in India: Take advantage of attractive 2009 holiday season special offers
Category : Home Mortgage
A number of banks have announced attractive housing loan schemes recently that can help you if you are looking to purchase a home soon. Many of these schemes offer lower interest rates for the first few years and then typically the loan interest rates are linked to the Bank’s Prime Lending Rate (BPLR) for the remaining years of your loan repayment period. This article summarizes the key aspects of the schemes offered by all major banks to help you make a decision quickly. You can also take advantage of the 1% subsidy announced by Government of India recently for home loans.
Some banks are also offering borrowers the ability to convert to either a fixed or floating loan after the special interest rate period has expired.
In addition to the lower interest rates for the first few years, some of these special schemes also come with other perks such as lower margin requirements, waiver of processing fees and no pre-payment charges.
Many of the special schemes have been announced with an eye on the 2009 holiday season with the goal of increasing the housing loan intake thereby stimulating the housing sector related sectors of the economy such as construction, steel etc. Most of these schemes are limited time offers (many upto October 31 and some till December 31) and hence customers interested in taking a housing loan must act quickly.
State Bank of India (SBI), India’s largest bank, has driven these special schemes by many other banks by coming up with its special home loan offer. Under this scheme, loans upto Rs. 5 lakhs come with a fixed interest rate of 8.00% for the first 5 years. At the end of the five-year period, a customer opting for home loans of less than Rs 5 lakhs can choose between a floating rate of 2.75 per cent below the State Bank Advance Rate (currently at 11.75 per cent) or a fixed rate of 1.25 per cent below SBAR for a further term of five years.
For home loans of between Rs 5 lakhs and Rs 50 lakhs, SBI will offer 8 per cent during the first year and 8.5 per cent for second and third years. From the fourth year, the customer can choose between a floating rate of 2.75 per cent below SBAR or at a fixed rate of 1.25 per cent below SBAR.
For over Rs 50 lakh loans, SBI will charge 8 per cent during the first year and 9 per cent for second and third years. From the fourth year, the customer can choose between a floating rate of 1.75 per cent below SBAR or at a fixed rate of 0.75 per cent below SBAR.
ICICI Bank has a special offer with interest rates of 8.75% for loans upto Rs. 20 lakhs, 9.25% for loans between Rs. 20 lakhs and Rs. 50 lakhs and 9.75% for loans above Rs. 50 lakhs.
LIC Housing Finance has a floating rate scheme with special interest rate of 8.75% for loans upto Rs. 75 lakhs. For home loan borrowers options for their 3 year Fix-o-Floaty scheme, the rates for new customers upto Rs. 75 lakhs will be 8.90%.
Canara Bank is offering a scheme where for home loans upto Rs. 30 lakhs, interest rate for first 12 months is 8.00%. Interest rate for next 48 months is 9.00%. Interest rate for above 60 months to upto 300 months is BPLR-2.50%. Changes in BPLR will not have any effect on the interest rates for the first 60 months. After 60 months the rate of interest is linked to BPLR. Rate of interest valid for loans sanctioned on or after 10.09.2009 upto 31.12.2009.
For home loans between Rs. 30 lakhs and Rs. 1 crore, Canara Bank’s interest rate for first 12 months is 8.75%. Interest rate for next 48 months is 9.50%. Interest rate for above 60 months to upto 300 months is BPLR-2.00%. Changes in BPLR will not have any effect on the interest rates for the first 60 months for loans. After 60 months the rate of interest is linked to BPLR. Rate of interest valid for loans sanctioned on or after 10.09.2009 upto 31.12.2009.
For home loans above Rs. 1 crore and upto Rs. 3 crores, Canara bank’s interest rate for first 12 months is 9.50%. Interest rate for next 48 months is 10.00%. Interest rate for above 60 months to upto 300 months is BPLR-1.00%. Changes in BPLR will not have any effect on the interest rates for the first 60 months. After 60 months the rate of interest is linked to BPLR. Rate of interest valid for loans sanctioned on or after 10.09.2009 upto 31.12.2009.
For loans above Rs. 3 crores, Canara Bank’s interest rate is BPLR-0.50% subject to a minimum of 11.50% with 200% security. BPLR is currently 12.00%. Rate of interest is valid for loans sanctioned on or after 10.09.2009 upto 31.12.2009.
State Bank of Patiala is offering an interest rate of 8.00% for home loans upto Rs. 30 lakhs for first year of repayment. The interest rate for the 2nd and 3rd years is 9.00% for loans upto Rs. 30 lakhs. From the 4th year onwards, the interest rate will be the then applicable floating home loan rate linked with BPLR. For home loan amounts over Rs. 30 lakhs, the interest rate offered is 8.00% for the first year and 9.50% for the 2nd and 3rd years of the loan repayment period. This scheme is valid till September 30, 2009.
Under Punjab National Bank’s (PNB) Festival Season Bonanza Offer 2009, home loans of upto Rs. 30 lakhs will have an interest rate of 8.50 is fixed for first 3 years only. After 3 years, interest rates will be based on bank’s BPLR will be applicable. Full waiver of processing fees and documentation charges are also applicable under this scheme. This scheme is valid till October 31, 2009.
United Bank of India’s special home loan scheme offers an interest rate of 8.25% fixed for first 5 years for a loan amount of upto Rs. 5 lakhs. The interest rate offered is 9.00% fixed for loan amounts between Rs. 5 lakhs and Rs. 20 lakhs for first 5 years of loan repayment period. The rate of interest shall be reset after 5 years & the borrower will then have the option for going for a Fixed rate or Floating rate of interest. This scheme is valid till December 31, 2009.
Punjab and Sind Bank has also announced a special housing loan scheme valid till December 31, 2009. Under this scheme, home loans of upto Rs. 20 lakhs will have an interest rate of 8.25% valid for first 2 years only. Years 3 to 5 years will have a fixed interest rate of 8.50%. Interest rate from 6th year onwards will be BPLR-2.50% with a floor rate of 10.00%. A lower margin of 10% is set for housing loans upto Rs. 5 lakhs and a margin of 15% for loans between Rs. 5 lakhs and Rs. 20 lakhs. No processing fee is to be charged for loans upto Rs. 20 lakhs and no prepayment charges are to be levied.
Oriental Bank of Commerce is also offering a special home loans package until December 31, 2009. Under this scheme, home loans of upto Rs. 5 lakhs will get a fixed interest rate of 8.50% for first 5 years. Home loans between Rs. 5 lakhs and Rs. 20 lakhs will have an interest rate of 9.25% fixed for first 5 years. For repayment years above 5 yrs and upto 20 yrs, interest rates will be decided after the 5th year of repayment based on Indian Banks Association (IBA) guidelines at that time.
Union Bank of India also has a special home loans scheme under which you can get a fixed interest rate of 8.50% for the first 3 years of your loan for loans upto Rs. 50 lakhs. For loans above Rs. 50 lakhs, you can get a fixed rate of 9.25% for the first 3 years of your repayment period. After the first 3 years, the loan interest rate is linked to the bank’s BPLR.
Bank of India offers a fixed rate of 8.50% for loan amounts of upto Rs. 5 lakhs for the first 5 years. The interest rate is 9.25% fixed for first 5 years for loans between Rs. 5 lakhs and Rs. 20 lakhs. The interest rate after 5 years will be set by the bank based on its BPLR.
South Indian Bank has a SIB shelter scheme under which loans of upto Rs. 30 lakhs have a rate of interest of 8.50% fixed for first 18 months. Rate of interest for next 18 months is 9.50% fixed. Rate of interest for balance period of payment is then prevailing housing loan interest rate of the bank for housing loans upto and including Rs. 30 lacs. At the end of 3 years, switchover to rate of interest – fixed or floating – shall be allowed without any switching charges.
For loans above Rs. 30 lakhs, South Indian Bank is offering a rate of interest for first 18 months of 9.00% fixed. Rate of interest for next 18 months is 10.00% fixed. Rate of interest for balance period of payment is then prevailing housing loan interest rate of the bank for housing loans above Rs. 30 lacs.
Bank of Baroda’s special housing loan scheme offers an interest rate of 8.50% fixed for loans amounts upto Rs. 5 lakhs and an interest rate of 9.25% fixed for loans amounts between Rs. 5 lakhs and Rs. 20 lakhs. The above rates are for the first 5 years. The rate of interest shall be reset after 5 years from the date of drawal of the first installment and borrower will then have the option for going for a fixed rate or floating rate of interest.
Dena Bank offers a festival season home loan scheme where home loans below Rs. 30 lakhs get an interest rate of 8.00% fixed for first and second years. Interest rate of 9.50% is fixed for years 3 to 5 of loan. The borrower will have option to choose either fixed or floating rate of interest from sixth year onwards. For loans above Rs. 30 lakhs, interest rates will be fixed at 8.50% for first and second years and 9.50% for years 3 to 5 of the loan repayment period. These rates will be applicable to new housing loans availed from 14th September 2009 to 30th November 2009.
Vijaya Bank has announced a festival season offer valid from 14.9.09 to 15.01.2010. For loans upto Rs. 30 lakhs, interest rate of 8.00% is offered for first year, while second and third years will have an interest rate of 9.25%. For years 4 and 5, interest rate will be 9.50%. For years 5 to 20, interest rate will be based on BPLR with a minimum of 10.00%. For loans above Rs. 30 lakhs, interest rate of 8.50% is offered for first year, while second and third years will have an interest rate of 9.75%. For years 4 and 5, interest rate will be 10.00%. For years 5 to 20, interest rate will be based on BPLR with a minimum of 10.50%.
Syndicate Bank’s special loan scheme offers an interest rate of 8.25% is applicable for first 2 years for loans upto Rs. 30 lakhs. Interest rate is 8.75% for 3rd to 5th years. Interest rate from 6th year onwards is PLR-2.50% subject to a minimum of 11.00%. For loans above Rs. 30 lakhs, the interest rate is 9.25%for first 2 years. Interest rate is 9.75% for 3rd to 5th years. Interest rate from 6th year onwards is PLR-2.00% subject to a minimum of 11.50%. This scheme is valid till March 31, 2010.
State Bank of Bikaner and Jaipur has a scheme where the interest rate for the first year is 8.00%. Interest rate for years 2 and 3 is 8.50% for loans upto Rs. 50 lakhs and 9.00% for loans above Rs. 50 lakhs. Borrower has the option of choosing a fixed rate or floating rate option for repayment periods after 3 years at the time of loan sanction. This scheme is valid till November 30, 2009.
To get the best home loan interest rates in India, you can always visit Ratekhoj’s home loan interest rate comparison page. To get your Equated Monthly Installment (EMI) numbers for a particular interest rate you can use our loan EMI calculator.
Watch the video related to home loan
Jerry Fischkes explains FHA Basics.
Help answer the question about home loan
What will happen to my home loan if WaMu closes or gets bought?I have my home loan, home equity, checking and savings accounts at WaMu. I know my checking/savings in insured by the FDIC but I am concerned about my home. Is it safe?
There are various ways to obtain debt consolidation loan. You could apply for personal loan or any unsecured loan with reasonable and lower interest rate as compare to your current debt's interest rate and consolidate your debts into this loan. But, to obtain an unsecured loan, you need to have a good credit score else you loan application most probably will be rejected.
The best way to consolidate your credit card debts or any other high interest debts is using a home equity loan. Of cause, you need to own a home in order to apply for a home equity loan. Home equity is ideal for you to consolidate your credit card debts because the interest is much lower interest rate than credit card and other unsecured loan. And the best part is it normaly have different terms or repayment periods for you to choose from. The longer the repayment terms, the lower the monthly payment is. If your current financial is tight, you could choose the longer repayment term and pay more when you are at better financial situation. Read more about it at: http://www.credit-card-gallery.com/article/134,Consolidate_Credit_Card_Debt_And_Eliminate_Debt_With_A_Home_Equity_Loan
I am a mortgage examiner in the State of Michigan. Your situation depends on where you are going for your mortgage. If you go to a mortgage broker, they may be able to shop around to find you the best lender – just please be careful when choosing a broker. There is so much fraud here – people are getting ripped off left and right. You can always call the Office of Finanical and Insurance Services to inquire on a broker (or lender, for that matter). If you decide to go straight to the lender, understand what they plan to do with your loan first – many of them sell loans on the secondary market.
The most important thing to remember is to ALWAYS review every piece of paper you sign. This is where some of the fraudsters are taking thousands of dollars from unsuspecting people.
Anyway, as long as your b-friend has a great credit score, steady income and proof as to why he didn't make that kind of money in the last month – you guys should be okay. Don't bring up what could happen in the future, cause you aren't a fortune teller. Keep it honest and things will work out.
Don't sweat the petty things and don't pet the sweaty things…..
Does anyone know what that is beside the skull on Poters desk. and what is that skull a paper weight.
I think it is a lighter, but I am not 100% sure.
if the seller is asking more for the house than what the lender thinks its
worth they won't give you the loan. the lender you are going to use
will appraise the house and if the price you are paying for the house is the same or less than the appraisal they will loan you that amount. if their
asking more for the house than it appraises your not going to get a loan.
your not going to borrow more money than what the value of the home
is. if the asking price is 200,000 and it appraises for that, that's how much you will get, not any more. you won't see any of the money, your
lender will pay directly to the title holder of the house.
John Paul,
First, I hope you contacted a good, reputable loan office BEFORE putting an offer on a home. And I hope you are getting good professional guidance through the process. The home buying process can be a thorny one if not handled properly…and the same is true of the home loan process.
There is no question that there are some great deals out there…and some great rates. But you have to think of the online deals as "big tent" offerings … while they may well apply to your particular circumstance … they also very well may not. Every lender, online or off, has their pool of offerings … some broader than others. Each has certain criteria that must be followed in securing that loan. And not every loan is available for every borrower. Are you self employed? Do you have a regular salary? Do you get hourly pay? How long have you been working for your current employer? What other fixed debts do you have? Do you pay child support or allimony? Do you have any positive or negative offsetting factors? What are your credit scores? These things, and many other factors, impact what type of loans you may qualify for … and what types may not be available to you at all.
I've never been a fan of "shopping rates" for the simple reason that they don't tell the whole story. I remember a buyer of one of my listings "got a great deal" from a particular lender (which he happened to find online). Problem was when he got to closing NOTHING in the loan package bore any resemblance to the loan he THOUGHT he was getting! He thought it was a fixed rate loan … it was not. The rate he'd been quoted was not the rate he actually got. He'd never heard of "negative amortization", and his loan had it. He never gave any thought to a "prepayment penalty" … his loan had that, too! With a lot of work we were able to get the prepayment penalty waived (this is a BIGGIE because the penalty was over $7,000 in the event he sold his home or refinanced within the FIRST 3 YEARS of the loan!) Even though the terms were horrible, he DID close on his purchase … and went right out and immediately refinanced his new home!
My point is that WHAT YOU DON'T KNOW can cost you big time. This is not something to "wing it" with. Talk to friends & coworkers & family who've dealt with reliable lenders in the past and ask for recommendations. Most certainly if you are working with a real estate agent, ask them for recommendations as well. We deal with lenders all the time and if the agent is experienced, they have an assortment of lenders they know are professional, reliable, ethical people … and they also know who to avoid!!!! Talk to a few recommended lenders … have them prequalify / preapprove you, making recommendations on programs they think your financial profile best fits. As long as the rates they offer are "in line" with with the market in general, I wouldn't worry about getting the best "deal". When you're looking at just raw numbers, you don't know what is being "cut" to get to that number. Quite often it's reliability and/or service.
By the way, my preference is to ALWAYS deal with a lender who will shephard you through the process from application to closing on your purchase. As the process moves along, you want to have a real live person you can call to answer questions, follow up to be sure all the proper steps are being taken, and to hold accountable if/when they're not.
Good luck! I know this is an exciting time and I hope all goes well for you!
I wouldn't see why not. As far as I know, there are no limits on how many mortgage loans one can have. I don't know if that applies in foreign countries, though.
As long as you can continue to make your monthly payments, that's all mortgage companies care about.
As a rule its 2 years in the same job field. It does not need to be the exact same job at the same company just the same field really. Also you may want to tell this person to get a quote from more than one mortgage person. Try going thru a bank like chase bank…. forget brokers they are more like a middle man. I'm sure i'll get thumbs down for that comment… good luck!
To have a mortgage loan you must have land involved, so no trailer park rentals. Lender's are not fond of mobile homes because they lose value – unlike a stick-built home which will appreciate in value. You are unlikely to find 100% financing for a mobile home. 90% or less is the norm and that is with good credit. Your interest rate will be higher as well.
If you are buying this as an investment (in your own future-not as an investment property) you should look into a modular home. Anything but a mobile. You won't get out what you put into a mobile. That said, there are some very nice mobile homes out there.
No, there are no loans for more then 96.5% of the sales price, that is as high as it is possible to go.
such a lovely feel to a film
its almost ending
FDIC is great and all, but it has almost nothing to do with lending. FDIC means that they have a Federal Deposit Insurance Company protecting your deposits (checking, savings, CDs, IRAs, etc) in the case of the bank going belly up. If the bank ends up getting in trouble, they will sell your loan off to another bank or financial institution for the capital. This can happen in large banks as well as small banks, especially the way the economy is right now.
To test this small bank for their federal guidelines, when you walk in next time ask them where they have posted their Community Reinvestment Act public notice. If they look at you like they have to no idea what you are talking about, walk back out the door and don't look back. If they have one, take a seat!!