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.
Second home to cost more
Second home to cost more as loans will be more expensiveApnaloan.com Research Bureau
10 Aug 2007
Banks to also charge 50-100 bps more for Rs 20 lakh-plus loans.
If you are looking to buy a second home or want a home loan of over Rs 20 lakh, get ready to pay more.
Taking the cue from Finance Minister P Chidambaram's directive to curb retail loans growth, including home loans, public sector banks are considering pricing home loans depending on the size of the loan or whether the property being purchased is for self use.
For housing loans above Rs 20 lakh, banks will charge 50-100 basis points higher interest. Banks will also charge higher interests for loans taken for second or third homes. Corporation Bank and Bank of India (BoI) are already charging higher rates for home loans of over Rs 20 lakh. Other banks like ICICI Bank, the largest home loan provider, and Punjab National Bank (PNB), are also likely to adopt a graded interest rate structure.
"We are considering a higher rate of interest for loans above Rs 20 lakh and for a second or third home. The differential will be 0.5-1 per cent," said U S Bhargava, chief general manager, Punjab National Bank.
Till now, interest rate on home loans varied according to the tenure of the loan, with longer tenure loans carrying a higher rate of interest. The rate of interest on home loans is 10-11.5 per cent now.
ICICI Bank is considering a differential pricing for home loans up to Rs 15 lakh, which are classified as priority sector lending. Home loans above Rs 15 lakh are likely to cost more. "We are evaluating whether we need to differ in pricing for priority sector loans," said Rajeev Sabharwal, senior general manager, ICICI Bank.
Sabharwal said ICICI Bank did not encourage second home loans and insisted on a higher margin and stricter credit standards. Banks are also looking to discourage second and third home loan borrowers, with the Reserve Bank of India (RBI) and the finance ministry raising concerns about rising property prices.
State Bank of India (SBI), is likely to take a call next week.
About 50 to 60 per cent of home loans are up to Rs 10 lakh. At present, banks do not have data on whether the home loan applicant is a first or second time borrower. However, the RBI has asked banks to collect such data from new customers.
(Courtesy: Business Standard)
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