With the advent of festival season our
country India’s largest lender – SBI (State Bank Of India) has embarked
upon a special campaign to ramp up its housing loan book.
It is going to reduce the processing
fee for housing loans to Rs.1,000 per loan irrespective of the size. The offer
would be made available from September 01 onwards
Uniform
at Rs.1,000 ..!
Currently, loan processing is at 0.25%
of the loan amount subject to a cap of Rs,
6,500 for loans upto Rs. 75 lakhs. For any higher loan amount, the
maximum fee ceiling is Rs.10,000.
For example, if you apply for a loan
of Rs. 20 lakhs, you need to pay a processing charge of Rs.1,000. With the new
offer, it will be uniform at Rs.1,000 for a housing loan. However, the offer
would end on 30th November, 2012.
At the same time, the banking behemoth
is actively mulling reduction in conversion fee which is presently at 1%.
For all banks, conversion fees are in
the range of 0.50 % to 2%. This move, if implemented, will help the existing
(SBI) hosuing loan customers, who are not entitled to get the benefit of
reduced interest rates to avail of the lowered interest rates.
Let’s assume the loan size is Rs.30
lakhs and a customer has already repaid Rs.10 lakhs. Therefore, he has to pay
Rs.20,000-(that is. 1% of 30 -10 =20 lakh lakhs) one time upfront for the
conversion.
Earlier, SBI cut the interest rates on
housing loans by over 0.50%, effective from August 7, 2012. However, it did not
change the base rate (remains at 10 per cent per year), the benchmark rate
below which the RBI (Reserve Bank of India) does not allow any bank to lend.
Currently, a housing loan borrower can
avail of a housing loan with interest at 10.25 per cent as against 10.75 per
cent prior to the rate cut, for a ticket size of Rs. 30 lakhs. The interest
rate will be 10.40 per cent for home loans above Rs. 30 lakhs. The EMI on Home
Loan tenor of 30 years is Rs. 897 per lakh which is the lowest in the home loan
market.
Sametime, the new rates are available
only to the new customers. So, a customer who had taken a loan at a higher
floating rate viz. 11.25 per cent will be keen to avail the benefit of the
current lower rate. So, he can convert his loan to the new rate by paying the
conversion fee.
Mr. Anil Rego, CEO & founder,
Rights Horizons, a Bangalore based advisory company said, "Those proposed
moves by RBI will certainly benefit customers, who should tap opportunities
right in time. However, the bank can't just keep on doing this beyond a point
as it may hurt their margins"
With 26 per cent market share, SBI
continues to be the leader in housing loan market followed by the privately
held HFC (housing finance company)- HDFC .
As of July, 2012SBI's housing loan portfolio stood at
about Rs. 1.06 lakh crores. Total retail loans stood at Rs 1.86 lakh crores in
the April - June (2012) quarter.
List of Housing
Projects..!
To facilitate housing loan borrowers,
it is planning to upload the list of housing projects, approved by the bank
shortly. The bank has tied up with about
1,045 such projects across India till July in 2012-13. In order to enlist its
projects, a builder has to meet certain norms prescribed by SBI.
For listed projects, the bank
sanctions housing loans in 4 to 5 days while it takes about 14 days to approve
a housing loan for other housing constructions. The lender offers a loan to
value (LTV) of 90 per cent for housing
loans upto Rs. 20 lakhs & upto 80 per cent for loans above Rs. 20 lakhs.
No comments:
Post a Comment