Benefits of Applying Online
When Banks Compete, you win.
Apply for a Home Loan at ApnaPaisa and we will match your requirements with the best offers from our network of over 400 service providers. We will get a maximum of five providers to compete for your business. WHEN BANKS COMPETE YOU WIN. You can then decide which home loan is best for you based on:
- Lowest Interest Rate
- Lowest EMI
- No Pre-payment charges
- Lowest Processing Fees
- Maximum Eligible Loan Amount
- Mandatory Documents Required
- Lowest Processing Fees
Or any other factor that is important to you.
Negotiating Tips
1) If you have a good credit record and your income is sufficient to justify the loan you can negotiate on interest rates. You can also try and get Processing fees or legal or valuation fees reduced or completely waived.
2) If you go for a floating rate loan then pre-payment charges are not payable.
3) When interest rates are high and are expected to go down you should go in for a floating rate loan as it makes no sense to lock into high fixed rates or the so called Dual rate loans where rates remain fixed for a couple of years before shifting to regular floating rate loans. Please review this decision at least once every 6 months
4) Take term insurance and critical illness and accidental disability policy for the full loan amount to make sure you or your loved ones don't have to worry about loan repayment should you die or are disabled due to a critical illness or accident. You cannot be forced to buy this policy from the insurance company chosen by the lender - you should choose your own insurer.
Hike Season: Now it's SBI's turn
SBI to hike repo rates to meet the RBI measuresApnaloan.com Research Bureau
10 Aug 2007
The bank yesterday announced an across-the-board hike of 50 bps in lending rates.
State Bank of India (SBI), the country's largest bank, has decided not to spare existing home loan borrowers from an increase in interest rate this time around. The bank today announced an across-the-board hike of 50 basis points in lending rates.
The bank has raised its benchmark advance rate to 12.75 per cent with effect from April 9, which will increase loan costs for individuals as well as corporate borrowers.
SBI's effective interest rates for home loans with repayment period of less than five years now is 10.75 per cent and for 5-20 years is 11.25 per cent. The revised interest rate on fixed rate home loans is 12.75 per cent.
SBI and other public sector banks had spared existing home loan borrowers when they raised their lending rates in February.
The decision was in adherence to the finance ministry's suggestion that existing home loan borrowers should not be burdened as those who had borrowed over a year ago had already seen a sharp rise in either their equated monthly instalments or tenures.
The increase in PLR by SBI is still less than the 75-100 basis points increase in lending rates effected by other banks after the Reserve Bank of India (RBI) announced more monetary tightening measures to combat inflation.
|
UP, UP AND AWAY |
||
|
Name |
Increase (bps) |
PLR (%) |
|
SBI |
50 |
12.75 |
|
ICICI Bank |
100 |
12.75 (individual), |
|
BoB |
75 |
13.25 |
|
HDFC Bank |
100 |
15 |
|
UTI Bank |
100 |
15 |
|
Yes Bank |
75 |
14.75 |
|
HDFC |
50 |
14 |
The current round of interest rate hikes is meant to pass on rising cost of funds to borrowers. SBI, which is struggling to push up its deposit growth rate, had started a rate war by announcing a peak rate of 9.5 per cent for 3-5 year deposits. ICICI Bank and others were pressurised by competition in announcing higher deposit rates. SBI's deposit growth is around 12 per cent against the sector's deposit growth rate of close to 25 per cent.
Earlier this week, private sector banks ICICI Bank, HDFC Bank and UTI Bank raised their PLRs by 100 basis points and public sector Bank of Baroda (BoB) by 75 basis points. BoB, however, effected a lower 50 basis points increase in interest rates for existing home loan borrowers. Similarly, Housing Development Finance Corporation (HDFC), the largest mortgage lender, raised rates for borrowers by 50 basis points.
State Bank of India's outstanding housing loans stood at Rs 36,475 crore at the end of December 2006. Housing loans account for more than half of the bank's retail advances and around 12.5 per cent of total advances.
(Courtesy: Business Standard)