Need 10 Lakhs Loan at Lowest Interest Rates?

Get Rs. 10 Lakhs loan for wedding, travel, medial emergencies, business purpose or debt consolidation.

Personal loan interest rates for a loan of Rs. 10 Lakh and above starts at 10.99% to 24% Annually.

Banks & NBCF’s such as SBI, HDFC, ICICI, RBL, Kotak Bank, Bajaj Finserv, Tata Capital, Fullerton, LendingKart, etc. offer personal loan of Rs. 10 Lakhs & Above for salaried as well as self employed individuals.

10 Lakh loan can be avail in metro and non-metro cities such as Mumbai, Delhi, Bangalore, Kolkata, Pune, Noida, Chennai, Thane, Navi Mumbai, Gurgaon, etc.

Apply for personal loan on Apnapaisa.com to know your maximum eligibility from top banks in India.

Loan Amount Interest Rate No. of Tenure / Repayment EMI Per Month
10 Lakhs Loan 10.99% 60 months / 5 years Rs. 21,737/-
10 Lakhs Loan 13.00% 60 months / 5 years Rs. 22,753/-
10 Lakhs Loan 14.00% 60 months / 5 years Rs. 23,268/-
10 Lakhs Loan 15.00% 60 months / 5 years Rs. 23,790/-
10 Lakhs Loan 16.00% 60 months / 5 years Rs. 24,318/-
10 Lakhs Loan 17.00% 60 months / 5 years Rs. 24,853/-
10 Lakhs Loan 18.00% 60 months / 5 years Rs. 25,393/-
10 Lakhs Loan 19.00% 60 months / 5 years Rs. 25,941/-
10 Lakhs Loan 20.00% 60 months / 5 years Rs. 26,494/-
10 Lakhs Loan 21.00% 60 months / 5 years Rs. 27,053/-
10 Lakhs Loan 22.00% 60 months / 5 years Rs. 27,619/-
10 Lakhs Loan 23.00% 60 months / 5 years Rs. 28,190/-
10 Lakhs Loan 24.00% 60 months / 5 years Rs. 28,768/-

Interest claim on Home Loans

“For those tax payers who want to realize their dream of owning a house, the Income Tax Act has a provision which allows them to claim interest on,loans,taken for a house. The deduction is available for the,loan,taken not only for the purchase or construction of a house, but also for loans taken for the purpose of repairs and renovation of the house.
This article will discuss various provisions in respect of allowability of interest under income tax Act and conditions to be met for this purpose.
Number of properties eligible for this deduction:
There is no restriction with regard to the number of properties for which you can claim the interest. For the said purpose, the properties are classified into two categories -Self-occupied and  the Let out. However in case you own more than one house, and these  houses are either  being used for self-occupancy or by your parents or any other relative, from which  you do not receive any monetary compensation, you have to opt one of these houses as self occupied and treat other/s as self occupied.. One  property can be treated as used for your own residence, whereas for other  properties, you have to offer notional rent for tax. In case of self-occupied property, the taxable value, known as annual value, is taken as  nil. In respect of all other properties, the actual rent received or expected to be received is taken as annual value of the property.
Limits up to which the interest claim is allowable:
In respect of the self occupied property, there is an overall limit of Rs. 30,000  for which you can claim the deduction. However this deduction goes up to Rs. 1,50,000 in case the amount has been borrowed after 1st April, 1999. However for claiming deduction of Rs.,1, 50,000  you have to satisfy two additional conditions. Firstly, the construction of the property should be completed or possession of the property should be taken within three years from the end of the year in which such money is borrowed.
Secondly, you have to obtain certificate/s from the lender specifying the amount of interest payable on such loan along with the fact that the money has been borrowed for the housing purpose. These certificates need to be produced before the assessing office in case your Return of Income is selected for detailed scrutiny, as presently you are not allowed to attach any document with the Return of Income.
There  is no upper limit on the amount of interest which you can claim in respect of the let out  property or the property which has been treated as let out. In case of let out properties, you do not even have to produce the certificate of interest from lender also. However you will have to provide the evidence that the interest is in respect of the money which has been used for the purpose of buying, constructing or repairs etc. of the property. Even interest paid in respect of,personal loans,taken for making down payments or for repairs of the property can also be claimed without certificate from the lender.
When can you start claiming deduction:
Though you are entitled to claim deduction in respect of,home loan,taken for the purpose of constructing your own house or for the purpose of booking an under construction house, the actual deduction cannot be claimed till you take the possession. It can only start  from the financial year in which the construction of the house property is completed and possession is taken. However aggregate interest paid on the money borrowed while the property was being constructed will be allowed in five equal installments. First such installment can be claimed from the year in which the construction of the property is completed or the possession is taken.
Requirement with regard to holding period:
In respect of claims made towards,housing loan,repayment to specified institutions, you are required to hold the property for a period of five years from the end of the financial year in which you had taken the possession, failing which all the benefits allowed to you earlier under Section 80 C will be subject to taxation in the year of sale. However, there is no such requirement of minimum holding period in respect of interest allowance, failing which benefits allowed earlier will be reversed. However in case of interest paid for under construction property to claim the full interest, you have to retain the property for five years. Otherwise you will lose your claim for rest of the years.
Other points to be considered:
You may not be  aware that you can claim the interest payable in respect of any money borrowed for the purpose of repaying the first loan taken for the purpose of construction, purchase or repair of your house. Thus interest paid on the second loan to repay the first loan is also allowable as deduction under income tax act.
There is a  perception among  general public  that for claiming interest deduction, the  home loan  should be  taken from banks or specified financial institutions. In reality this is not so. You can borrow the money from anybody including your relatives and claim the benefits of interest claim against your house property income.
Besides above stated purposes,  you can claim even if  you  have actually not paid the interest but it has only  been due.
I hope it is clear  that the provision of deduction of interest from income is a great relief to the tax payers as it helps them in reducing the tax liability, at the same time helps them in creating an asset.

 

Need 5 Lakhs Loan at Lowest Interest Rates?

Get Rs. 5 Lakh loan for marriage, travel, medial emergencies, business purpose or debt consolidation.

Personal loan interest rates for a loan of Rs. 5 Lakh and above starts at 10.99% to 24% Annually.

Banks & NBCF’s such as SBI, HDFC, ICICI, RBL, Kotak Bank, Bajaj Finserv, Tata Capital, Fullerton, LendingKart, etc. offer personal loan of Rs. 5 Lakh & Above for salaried as well as self employed individuals.

A personal loan of 5 Lakh plus can be avail in metro and non-metro cities such as Mumbai, Delhi, Bangalore, Kolkata, Pune, Noida, Chennai, Thane, Navi Mumbai, Gurgaon, etc.

Apply for personal loan on Apnapaisa.com to know your maximum eligibility from top 40 banks in India.

Loan Amount Interest Rate No. of Tenure / Repayment EMI Per Month
5 Lakhs Loan 10.99% 60 months / 5 years Rs. 10,869/-
5 Lakhs Loan 13.00% 60 months / 5 years Rs. 11,377/-
5 Lakhs Loan 14.00% 60 months / 5 years Rs. 11,634/-
5 Lakhs Loan 15.00% 60 months / 5 years Rs. 11,895/-
5 Lakhs Loan 16.00% 60 months / 5 years Rs. 12,159/-
5 Lakhs Loan 17.00% 60 months / 5 years Rs. 12,426/-
5 Lakhs Loan 18.00% 60 months / 5 years Rs. 12,697/-
5 Lakhs Loan 19.00% 60 months / 5 years Rs. 12,970/-
5 Lakhs Loan 20.00% 60 months / 5 years Rs. 13,247/-
5 Lakhs Loan 21.00% 60 months / 5 years Rs. 13,527/-
5 Lakhs Loan 22.00% 60 months / 5 years Rs. 13,809/-
5 Lakhs Loan 23.00% 60 months / 5 years Rs. 14,095/-
5 Lakhs Loan 24.00% 60 months / 5 years Rs. 14,384/-

 

Education Loans Put Your Money Where Your Mouth Is

The education ministry headed by Mr. Kapil Sibal (actually the ministry is called Human Resources Development but the most important thing it looks after is education) is in the limelight following the realization that higher education and vocational training are the best poverty alleviation tools in the long run.
Lot has already been written about what needs to be done in the higher and vocational education sector. There are plenty of valid suggestions on how to energize this sector by increasing capacity, improving quality, making it more accessible and removing it from the clutches of the government bureaucracy and bringing in the private sector.

One important element of reform in this sector will necessarily be in the area of education,loans,.
We have already seen the difference that easier availability of loans can make in the housing and consumer durables sector. Education can be another sector that can benefit tremendously by easier availability of education loans.

Today education loans in India lack any institutional backing and suffer from the disease of good intentions. Let me explain.

At the best of times education loans are a risky business for the banks in any country. The typical higher education or vocation education student will take around 2-5 years to complete his education. He will need a fairly large loan,to complete his education. Most likely he will not have any collateral security to offer for the education loan. In most cases his parents (or other close relatives) may be willing to stand guarantee for the due repayment of the loan but their own income may not be sufficient to repay the loan in case the student is unable to complete the course for any reason or is unable to find a job after he completes the course. In fact in a majority of cases the student’s family is not even in a position to pay the interest on the loan during the time when he is undergoing the course. They require that the interest amount also be accumulated and the repayment (of both principal and interest) begins only after the course is over and the student gets the job.,So in summary the bank is expected to lend money to a borrower without any collateral security and without sufficient current income to pay back the loan solely on the hope that the student will acquire skills good enough to get a job that will pay him enough to enable him to pay back the loan,. So
left to themselves the banks are not going to disburse significant amount of education loans except to the well heeled who can provide collateral/guarantee.

In most countries government funded specialized institutions (such as the older version of Sallie Mae in the US or the FFSAP – Federally Funded Student Aid Program) step in to ensure that loans are available for all students who are good enough to get into any accredited educational institutions that provides higher or vocational education. The loans are,not cheap,but the important thing is that they are available in spite of the credit issues surrounding education loans.

The institution normally does not lend directly but provides back to back refinance (provide loans to lenders to enable them to on-lend to students) and share in the risk (write off part of such loans if the student defaults and is unable to repay) to make sure that this vital tool to make higher education accessible to everybody (and not just the middle and rich classes as is the case in India). Contrast this with what happens in India.,The total,incremental,education loan disbursements made by the entire banking sector for last year waS around Rs. 8,500 crores which is quite negligible considering the bank’s total deposit base.,Compare,this with the estimated home loan disbursements in excess  of Rs.1,00,000 crores for the same period and the contrast is very clear.

So what is the reason for this dismal state of affairs? It is the attitude of the government that talk can substitute for action. The finance minister had promised to set up an Education Re-finance Corporation from part of the education cess that all of us pay. That promise is languishing in the bureaucratic by lanes of Delhi for the last 3 years. Meanwhile the policy makers hope that good intentions and strong words will somehow produce results.

Education loans are a part of the priority sector but have no separate allocation. Also education loans cannot be priced higher than 1% above the particular bank’s PLR. Thus banks like to do the other kind of priority sector loans (loans to small transport operators, professionals etc.), which they consider less risky.
In fact, the private sector banks and foreign banks who cannot be bullied by the government, have completely kept away from the sector (some of them have education loan programs but they all require collateral and/or guarantee from a well earning relative and interest servicing during the course period which effectively means that they service only the well heeled sections of the society). The public sector banks on the other hand are forced to show some disbursements under this head, do the minimum that they can get away with without offending the government.

They naturally have restrictive rules on the type of courses as well requirement of collateral/income based guarantee for loans above Rs. 4 lacs. All this means that there will be restricted finance available for potential students even as the education sector itself is becoming diversified and more vibrant.

In the current budget announced on July 6, 2009 the finance minister, in a clever play of words, has promised to subsidise  the entire interest expenses incurred during the course period  of students from the economically weaker sections who somehow manage to get the loan sanctioned from banks. He has said that about 5 lac students are expected to benefit from this scheme. This looks more like a statement aimed at the galleries rather than actually getting some results on the ground. It is very doubtful that the PSU banks in India will give loans to so many students belonging to economically weaker section of society.

In fact if a poor student was bright enough to get admission in say Harvard but did not qualify for student aid from the university, perish the thought that a education loan will enable him to do the course. He will probably have to do the rounds of the charitable institutions for grants/aid or probably some politician will take up his cause after the story is played up in the media.
If he is not willing to do that he will probably loose the chance of completely remaking his (and the country’s) future.

Finance Minister routinely exhort the public sector banks to lend more towards education loans. It is no surprise that public sector equally routinely ignore this exhortation after paying lip service to education loans by releasing a few prominent advertisements in the media.

Then hon’ble education minister must ensure that the government puts its money where its mouth is and creates the state funded institution that was promised long ago. After that more education loans will actually get disbursed .

To that day  Amen

SBI Declares War : Wants To Capture Pole Position In Home Loan Mart

The home loan war seems to be hotting up. The private sector players (HDFC, ICICI, Axis, LIC housing Finance) are all providing,loans,at around 9.25% floating to their new consumers (including to existing borrowers of other banks wishing to shift their loans). For once the PSU banks seem to be using attractive structured offerings to provide stiff competition to the private lenders.

Suddenly the PSU banks are raining offers on the home,loan,consumers (including long suffering existing consumers of other banks). The Canara bank offer of completely fixed rates for the next 5 years was quite popular and SBI has also come out with a good offer.

For Home Loans upto Rs. 30 lacs the details are as under:
8% fixed for 1st year , 9% fixed for 2nd and 3rd year and the consumer can decide today between a floating rate thereafter at 2% below SBAR prevalent at that time (current SBAR is 11.75% so if SBAR remains the same the rate will be 9.75% after 3 years but actual rate will be known only at that time) or a fixed rate after 3 years for the 4th and 5th year at 1% below SBAR prevalent at that time (so if SBAR remains constant for 3 years then the fixed rate after 3 years will be 10.75% but actual fixed rate for 4th and 5th year will be known only then) . There are no processing charges and no pre-payment charge if the pre-payment is made from your own sources.

Sources within HDFC have correctly pointed out that if you take the average rate (assuming that the rate from 4th year onwards will be 9.75% floating) then it works out to9.35% for SBI versus 9.25% for them.
However given the uncertainty surrounding interest rates and more importantly the tendency of all lenders (contrary to popular opinion the PSU banks also have a similar behaviour pattern) not to pass on the benefit of reduction in interest rates to their existing floating rate customers, it is always safe to go for fixed rates as long as they are economically priced and even if only for a few years.

It is here that the SBI plan scores over the other lenders who lend only on floating rate basis. Personally I would still rate the Canara Bank scheme higher than SBI as it provides for a fixed rate for 5 years with other charges that are the same as SBI.

The mighty sales machinery of SBI is already in full flow and their local level managers seem keen to do business for once. Let us see how the consumers re-act to this new scheme. Afterall the consumer is supreme.

Cheap Realty Not Reality

While much is being reported in the media about the significant dip in property prices, in actual practice most large developers are still holding on to their prices.
Though off course, they are trying to boost sales by throwing in freebies such as free stamp duty and registration, free parking, no charge for floor rise, etc.

Coming to home loan rates banks are decreasing their interest rates on,home loans,and property prices are reportedly softening.
But will it be effective in raising consumer demand?
Does that mean that it will be easier to get loans ?
Will banks give loans willingly?
Will consumers come forward to take more home loans?
The questions remain

The fact remains that to a large extent, the lending and borrowing scenario has not brightened in spite of banks reducing the,loan,rates and some news of dipping real estate prices. Of course existing,home loan,consumers are happy that their inflated EMI burden will reduce somewhat.

However it seems these boosters are not sufficient to lift the spirits of Indian consumers who are grappling with financial insecurities. The overall economic slowdown, global news reported by the media, job loss, job insecurity, uncertain future of businesses/enterprises, volatility in the stock markets are a few reasons that may keep potential borrowers from investing in residential property (and therefore taking any home loans). Moreover additional taxes on real estate such as the 5 per cent value added tax (VAT) and 4.5 per cent service tax are obstacles in the way of boosting demand, be it for property or property loans. These costs have to be borne by the buyer.

To add to the number of speed-breakers in the way of these two inter-dependent sectors, there are the tightening eligibility norms. Lenders have made their norms more stringent. They have raised the margin required for a home loan because property prices could go down further.
The real up tick in demand will come when the consumer feels confident about taking on long term liabilities. We should watch for the Consumer Confidence Index (CCI) figures, which have been slipping downwards almost every quarter of late.

Predictions in a volatile scenario such as the current times are difficult. Interest rates need to see a further revision southward to be able to boost the demand for home loans. Similarly, property prices should see a visible correction to encourage the demand for realty and thus home loans. But most importantly, consumer confidence needs to be boosted.
Maybe wait and watch should be the buzzword for now.