DECLINING INTEREST RATES OFFER NEW OPPORTUNITIES FOR HOME BUYERS
CURRENT TRENDS INDICATE DRASTIC CHANGES IN FUTURE – ANIL MITHAS
This Diwali season seems to be extremely lucky for home buyers in India. The trend of declining interest rates that started with the State Bank of India and the HDFC Bank in the last week of August continues even today.
As Indian economy is gradually stabilizing with all its basic parameters registering remarkable growth, this trend is likely to continue further. The inflation rate was recorded at 6.46 percent in September, 2014. May it be noted that inflation rate averaged 9.35 percent from 2012 until 2014, reaching all time high of 11.16 percent in November, 2013 and a record low of 6.46 percent in September, 2014. With crude oil prices at the three year low and monsoon more or less satisfactory, inflation is not expected to rise any further in near future.
As compared to 2012 and 2013 growth rate of Gross Domestic Product has also improved bringing cheers to both domestic as well as foreign investors. While GDP growth rate was 4.75 percent and 4.35 percent in 2012 and 2013 respectively, it jumped to 5.41 percent in 2014 (till July). With the Modi government making all the efforts to bring the economy back on track, the DGP growth rate is expected to soar further as the year ends.
Although the Reserve Bank of India is adopting a cautious approach towards moderating interest rates and wants to be doubly sure about the long term implications of such a step, almost all national and private banks are bullish on this front. The home loan interest rates that hovered between 12- 15 percent till recently, have now come down to 10-12 percent.
Here is a table that shows how interest rates on home loans have changed during the last six months:
So as the table illustrates the trend of declining interest rates on home loans over the last six month, experts believe that the interest rates will fall further once the Reserve Bank of India takes a much awaited call in this respect. Needless to say, with decline in interest rates, monthly installments will also come down.
With the Modi government’s commitment towards housing for all by 2022 and the steps it has taken in this direction so far, it is very much evident that the housing sector is in for a major boost. Experts say that the Modi government has taken several important steps to attract low cost foreign investments in the housing sector which will certainly reduce the cost of housing projects. If we couple it with lower interest rates on home loans, it will certainly prove to be a bonanza for home buyers.
Mr Anil Mithas, CMD, Unnati Fortune Group says that despite disappointing reports in media about property business this season, things are poised to take a big leap in near future. He says “let alone interest rates on housing loans; overall business policies and environment are changing at much faster pace than anticipated. It is high time for real estate industry to sit back and take stock of the situation and prepare plans for its future in accordance with these fast paced changes.”
“The Modi government is challenging real estate industry in more ways than one. May it be infrastructure, affordable housing or environmental issues; overall perspective of our industry is bound to change. Those who refuse to bite the bullet will perish. The ease of doing business will be much more but at the same time accountability and responsibility of the businessmen will also increase manifold. In the times to come, consumer will be king. Those who compromise with his interests will certainly suffer heavy penalties” says Mr Mithas.
For More Information Visit Us- http://unnatifortune.com/About_us.php
CURRENT TRENDS INDICATE DRASTIC CHANGES IN FUTURE – ANIL MITHAS
This Diwali season seems to be extremely lucky for home buyers in India. The trend of declining interest rates that started with the State Bank of India and the HDFC Bank in the last week of August continues even today.
As Indian economy is gradually stabilizing with all its basic parameters registering remarkable growth, this trend is likely to continue further. The inflation rate was recorded at 6.46 percent in September, 2014. May it be noted that inflation rate averaged 9.35 percent from 2012 until 2014, reaching all time high of 11.16 percent in November, 2013 and a record low of 6.46 percent in September, 2014. With crude oil prices at the three year low and monsoon more or less satisfactory, inflation is not expected to rise any further in near future.
As compared to 2012 and 2013 growth rate of Gross Domestic Product has also improved bringing cheers to both domestic as well as foreign investors. While GDP growth rate was 4.75 percent and 4.35 percent in 2012 and 2013 respectively, it jumped to 5.41 percent in 2014 (till July). With the Modi government making all the efforts to bring the economy back on track, the DGP growth rate is expected to soar further as the year ends.
Although the Reserve Bank of India is adopting a cautious approach towards moderating interest rates and wants to be doubly sure about the long term implications of such a step, almost all national and private banks are bullish on this front. The home loan interest rates that hovered between 12- 15 percent till recently, have now come down to 10-12 percent.
Here is a table that shows how interest rates on home loans have changed during the last six months:
So as the table illustrates the trend of declining interest rates on home loans over the last six month, experts believe that the interest rates will fall further once the Reserve Bank of India takes a much awaited call in this respect. Needless to say, with decline in interest rates, monthly installments will also come down.
With the Modi government’s commitment towards housing for all by 2022 and the steps it has taken in this direction so far, it is very much evident that the housing sector is in for a major boost. Experts say that the Modi government has taken several important steps to attract low cost foreign investments in the housing sector which will certainly reduce the cost of housing projects. If we couple it with lower interest rates on home loans, it will certainly prove to be a bonanza for home buyers.
Mr Anil Mithas, CMD, Unnati Fortune Group says that despite disappointing reports in media about property business this season, things are poised to take a big leap in near future. He says “let alone interest rates on housing loans; overall business policies and environment are changing at much faster pace than anticipated. It is high time for real estate industry to sit back and take stock of the situation and prepare plans for its future in accordance with these fast paced changes.”
“The Modi government is challenging real estate industry in more ways than one. May it be infrastructure, affordable housing or environmental issues; overall perspective of our industry is bound to change. Those who refuse to bite the bullet will perish. The ease of doing business will be much more but at the same time accountability and responsibility of the businessmen will also increase manifold. In the times to come, consumer will be king. Those who compromise with his interests will certainly suffer heavy penalties” says Mr Mithas.
For More Information Visit Us- http://unnatifortune.com/About_us.php
Bank | Floating Interest rate | Per lac EMI | Processing Fee | Prepayment Charges | % Change in last 6 mths |
---|---|---|---|---|---|
SBI - State Bank Of India | 10.10% (For Women), 10.15% (For Others) | Rs.972 (For Women), Rs.975 (For Others) | Up to 25 lacs : 0.25% of loan amount minimum Rs.1000/- 25-75 lacs : Rs.3,250/- 75 & above : 5,000/- | NIL | 1.45% |
ICICI Bank | 10.10% (For Female), 10.15% (For Others) | Rs.972 (For Female), Rs.975 (For Others) | 0.50% of loan amount upto 1 crore | N.A | 1.44% |
HDFC Ltd | 10.15% | Rs.975 | 0.5% or maximum 10,000+service tax (12.36%) | No prepayment charges shall be payable for partial or full prepayments irrespective of the source | 0.97% |
HSBC Bank | 10% - 10.20% (for Salaried) 10.15% - 10.35% (for SelfEmployed) | Rs.965 - Rs.978 (for Salaried) Rs.975 - Rs.988 (for SelfEmployed) | 1% of the loan amount applied for, subject to a minimum of Rs 10000 plus service tax. This fee is payable on application and is not refundable | NIL | N.A |
LIC Housing | 10.10% (Fixed for 2 yrs) | Rs.972 (Fixed for 2 yrs) | Up to 50 lacs : 10,000 +(Service tax) 50 lacs & above : 15,000 +(service tax) | NIL | No Change |
AXIS Bank | 10.25% | Rs.982 | Upto 1% of the loan amount subject to minimum of Rs.10,000/- | NIL | 2.38% |
IDBI | 10.25% | Rs.982 | NIL | If Balance Transfer then 2% Otherwise Nil | No Change |
Punjab National Bank | 10.25% | Rs.981 | NIL | NIL | No Change |
PNB Housing Finance | 10.25% - 10.50% (for salaried) 10.75% - 11.25% (For SEMP) | Rs.981 - Rs.998 (for salaried) Rs.1120 - Rs.1152 (For SEMP) | 0.5% | NIL | No Change |
ING Vysya | 10.75% - 11.25% | Rs.1015 -Rs.1049 | 0.5% of the loan amount | NIL | N.A |
Standard Chartered | 10.26% | Rs.982 | Rs.5500/- + Service tax | NIL | No Change |
Citibank | 10.15% - 10.20% | Rs.974 - Rs.978 | 0.25% (For Salaried) 0.5% (For Self Employed) | NIL | No Change |
Deutsche Bank | 10.50% | Rs.998 | 12000 + Service Tax | NIL | N.A |
DHFL | 10.50% (for salaried), 10.75% (For SEMP) | Rs.998 (For salaried), Rs.1015 (For SEMP) | 1% for Salaried & 1.5% for SENP | NIL | No Change |
India Bulls | 10.15% (Upto 25Lacs), then 11% | Rs.975 (Upto 25Lacs), then Rs.1032 | Rs.7500 + 12.36%(Upto 30Lacs) , else 0.5% of the loan amount | NIL | 0.97% (Upto 25Lacs), the No change |
Federal Bank | 10.83% | Rs.1021 | 0.50% of the limit sanctioned with a minimum of 3,000+ST, maximum of 7,500+ST | N.A | 2.65% |
Bank of Maharastra | 10.40% | Rs.992 | Up to 25 Lacs : NIL Above 25 Lacs : 0.25% of the Loan Amount: Subject to a Maxium Rs. 25,000/- | Nil | 5.96% |
Allahabad Bank | 10.25% | Rs.982 | upto 30 lacs: 0.60% of the loan amount subject to max. Rs.12000 30 lacs - 75 lac: 0.45% of the loan amount subject to max. Rs.24000 above 75 lacs - 300 lacs:0.35% of the loan amount subject to max. Rs.60000 above 300 lacs: 0.25% of the loan amount subject to max. Rs.70000 | NIL | N.A |
Central Bank of India | 10.25% | Rs.982 | 0.50% of the loan amount subject to maximum of Rs.20,000/- | Nil | 2.38% |
Corporation Bank | 10.25% | Rs.982 | 0.50% of Loan amount (Max.Rs.50,000/-) | NIL | 2.38% |
Bank of India | 10.20% | Rs.978 | 100% waiver of Processing charges on new home loans sanctioned during festive period upto 31.12.2014 & 1st disbursement on or before 15.01.2015 | NIL | 0.48% |
Union Bank of India | 10.25% | Rs.982 | N.A | NIL | 2.5% |
Union Bank of India | 10.25% | Rs.981 | Waiver of processing and documentation charges upto Rs.75 lacs | N.A | |
UCO Bank | 10.20% | Rs.978 | 0.5% of the loan amount, minimum Rs.1500/- & maximum Rs. 15000/- | NIL | N.A |
Bank of Baroda | 10.25% | Rs.982 | Loan upto Rs.30 Lacs - 0.50% (Minimum Rs.5,000/-) Above 30 Lacs - 0.40% (Min. Rs.15,000/- & Max. Rs.50,000/-) | N.A. | N.A |
Canara Bank | 10.20% | Rs.978 | 2.51% | ||
Oriental Bank of Commerce | 10.25% | Rs.982 | NIL | NIL | No Change |
Kotak Bank | 10.25% | Rs.982 | 0.25% - 0.5% | 2% on Balance transfer else NIL | 4.65% |
Dena Bank | 10.25% | Rs.982 | Waiver of process fee and concession in rate of interest during ensuing festive season w.e.f. 01/09/2014 to 31/12/2014 | Nil | 0.48% |
First Blue Home Finance | 10.25% (for Salaried / SEP), 10.75% (For Self Employed) (Upto 25Lacs), Then 10.75% (for Salaried / SEP), 11.25% (For Self Employed) | Rs.982 (for Salaried / SEP), Rs.1015 (For Self Employed) | Salaried: Up to 30 lacs :7300 30 - 75 lacs : 11800 75 lacs & above : 15,000 + service tax(12.36%) | Nil | N.A |
First Blue Home Finance | 10.25% (for Salaried / SEP), 10.75% (For Self Employed) (Upto 25Lacs), Then 10.75% (for Salaried / SEP), 11.25% (For Self Employed) | Rs.982 (for Salaried / SEP), Rs.1015 (For Self Employed) | Salaried: Up to 30 lacs :7300 30 - 75 lacs : 11800 75 lacs & above : 15,000 + service tax(12.36%) | Nil | N.A |
Vijaya Bank | 10.30% | Rs.985 | 0.25% of loan amount. Maximum Rs.10000. Exclusive of Service Tax | N.A | N.A |
Syndicate Bank | 10.25% | Rs.982 | upto Rs.25 lacs - 0.25% (Min Rs 1000 - Max Rs 5000) 26 lacs to 75 lacs - 0.55% (Max.Rs.500/-) above Rs.75 lacs - 0.55% (Max Rs.10000/-) | N.A | 2.38% |
Indian Overseas Bank | 10.25% | Rs.982 | A flat rate of 0.58% of the loan amount- maximum of Rs. 10,190/- There is no hidden charge. This is subject to change from time to time without prior intimation. | N.A | N.A |
Development Credit Bank | 11.50% | Rs.1066 | 1% | Nil | N.A |
State Bank of Travancore | 10.25%-10.50% | Rs.982 - Rs.998 | Limit upto Rs.25,000 - Nil Limit above Rs.25,000 to Rs.2 lacs - 0.56% of the loan amount (Max.Rs.500/-) Limit above Rs.2 lacs - 0.56% of the loan amount maximum Rs.10000/- Processing charge upto 30-06-2014 will be 0.281% (50% concession upto 30-06-2014) | NIL | N.A |
Tata capital Housing Finance ltd | 10.15% - 10.60% (Salaried) 10.25% - 11% (SEP/SENP) | Rs.975 - Rs.1005 (Salaried), Rs.982 - Rs.1032 (SEP/SENP) | 0.5 to 1% off the loan amount. | N.A | N.A |
Dhanalakshmi Bank | 11.50% - 11.75% | Rs.1066 - Rs.1084 | 1% + service tax | N.A | |
Indian Bank | 10.25% | Rs.982 | 0.25% of loan amount with a maximum of Rs.20,000 | Nil | 0.49% |