United Bank of India (UBI) has launched an 8% home loan scheme available till March 31 2010.

The bank would charge 8% interest on home loan for the first year and 9% for the second to fourth years. From the fifth year onwards, it would charge interest on a floating basis, which would be 2 percent less than the benchmark prime lending rate (BPLR) prevailing at that time, the release said.

In this scheme the processing fee will be nil.

Under fixed rate, the bank will charge one percent less than the BPLR and the home loan interest rate would be revised every five years, it said.

Along with this United Bank of India announces reduction in its Car Loan by 1%. This is applicable on the card rates up to 31st Dec 2009. Above this there won’t be any processing fee on car loans.

IDBI Bank today announced special home loan scheme which is a combination of fixed and floating interest rates. The scheme offers home loans at 8.25 per cent irrespective of the amount till March 2012, giving a wider option of cheap loans to home buyers. Thereafter, the interest rate charged on these home loans would be at the then prevailing floating interest rates.

The offer is applicable to all new home-loan customers applying on or before March 31, 2010, and taking a part or full disbursement during the period, an IDBI Bank press release said.

After the offer period, Home Loan Interest Rates will be charged based on the then prevailing floating rates, the bank said.

IDBI Bank, at present, is offering 8.75 per cent for loans up to Rs 30-lakh, 9 per cent for loans between Rs 30-lakh and up to Rs 50-lakh and 9.25 per cent for loans above Rs 50-lakh.

State Bank of India (SBI) is already offering home loans in the range of 8 per cent. A home loan war was triggered when mortgage leader HDFC cut interest rates to match SBI. Since then the violent competition in the segment is getting intensified day by day with ICICI Bank and another player Dewan Housing also joining the league.

Click here to Check Eligibility Criteria and Document required for IDBI Home Finance.

( Source:- http://www.deal4loans.com/loans/home-loan/idbi-slashes-home-loan-rates-to-8-25-percent/ )

The decision to buy a home or build a house is one of the biggest financial decisions that an individual takes. A personal home or a house gives an Individual a sense of identity. Today Government and other financial institutions including banks are encouraging people to buy houses with flexible and easy pay home loan with low home loan interest.

Yes, flexible and easy pay home loan with low interest is the assurance given to every person opting for a home loan by probably every bank offering home loan. Home loan has three essential elements the principal amount, the home loan interest and the repayment term. The Home loan interest is very important in determining the uptake of this Home loan by the masses. Due to usual human tendency, cheap home loan is preferred rather than the expensive alternative. However the Home Loan rates are, not the only factor an individual should consider, but there are several other factors an individual should consider before finalizing his decision for a home loan.

However since rates are of paramount importance for any loan including home loans lets elaborate more on it giving examples of two banks offering home loans called the SBI home loans and HDFC home loans.

SBI Home Loans come to you on the solid foundation of trust and transparency built in the tradition of State Bank of India. SBI Home Loan – For Loan amount upto Rs. 30 Lacs…. (w.e.f. 01.July.2009)

• SBI Home Loan or Home loan rate during the first year (i.e. till first anniversary date from the date of first disbursement) is fixed at 8% p.a.
• SBI Home Loan or Home Loan rate during next two years is fixed at 8.5% p. a.
• SBI Home Loan or Home Loan rate after three years may be Fixed or Floating as per the borrower’s choice made at the time of sanction. If floating home loan rate option is chosen, then the home loan rates will be 2.75% below SBAR (State Bank Advance Rate). If fixed home loan rate option is chosen, then the home loan rates will be 1.25% below SBAR prevailing on the third anniversary date from the date of first disbursement of SBI home loan and shall have a reset frequency of 5 years from the third anniversary date of the SBI home loan. Fixed interest shall be subject to force-majeure clause.
• For SBI home Loan amount above 30 lacs SBI Home Loan rates is fixed at 8% p.a. and 9% p.a. for first and second years of taking the SBI Home Loan, respectively and for third year if floating home loan rates option is chosen, then the home loan rate will be 1.75% below SBAR . If fixed home loan rate option is chosen, then the home loan rate will be 0.75% below SBAR.

HDFC Home Loans

HDFC’s objective, from the beginning, has been to enhance residential housing stock and promote home ownership by way of HDFC Home loans.

HDFC home loans or floating home loan rates for new customers are

• 9.75 per cent for HDFC home loans up to Rs 30 lakhs.
• 10.75 per cent for HDFC home loans more than 30 lakhs.

HDFC Home Loans PLR for eCBoP floating home loan rate, HDFC Home Loans has been changed in 2008/2009 as follows,

Thus the efforts are to keep decreasing the interest rates to a point where it can encourage people to take more and more home loans. With increasing competition among banks, interest rates would be a deciding factor as to which bank can offer the least interest rates and which would be higher on interest rates but will try to gain customers through prompt incentives by waiving of the charges for processing and documentation, for home loans.

What should be my income for availing a home loan for say 25 lakhs?how do i calculate the eligibility amount based on my income?

for avail home loan ts. 25 L, your annual income 500000-550000 lakh. but remember bank give the loan after check your past three years financial record’s, past 6-7 months bank statement, your any other loan schedule & verify your property (which will you purchase), if your all documents suitable for loan then bank give to you loan.

Is home loan interest no limit exemption applicable for a property where my parents live?

I have taken a home loan India for a property at my native where my parents live.I am staying in Chennai at a rented house.Shall i claim the whole interest(more than 150000) i am paying for the home loan since the property is not self occupied.And also shall i claim HRA exemption for the rent i am paying

As long as you have not rented out the house, even if you keep it vacant it is deemed ’self-occupied’. You are eligible for tax benefit on interest of Rs 1.5 L. You can claim HRA exemption if you are receiving HRA in your salary. The actual HRA deduction, u/s 10(13A), you will be entitled to will be the least of the following: •The actual amount of HRA received. •40% of salary. This increases to 50% if you are renting out the house in Delhi, Mumbai, Chennai or Kolkata. •Rent paid minus 10% of salary (basic component + dearness allowance)

When can one get the documents back after repaying his home loan? How long does it takes?

If someone pay his/her home loan in between (Accepting the penalty od 2-2.5 % whatever) then when should the bank returns the documents and how?

The bank (or actually, a service provider for the bank) will record a “re-conveyance”. Once the reconveyance is recorded, they will mail you a copy. Allow 4 weeks. (Perhaps 6 weeks in the current fiscal mess.)

Can I save long term capital gain by repaying home loan ?

I’m planning to buy a flat in delhi by taking home loan. I have a house for sell. Now the question is – If I buy flat first and sell house later and pay the long term capital gain to the bank to lessen the amount of loan, will it save Capital gain tax ? for your information, I’ve bought my house in 1998.