Emerging Trends home Loan in India..!

 Now Cheapest Home loan Available at 10%..!

BY S. MAYURA

Burgeoning house prices in India, especially in top metros such as Mumbai, Delhi, Chennai have added to worries of house buyers.

In the past  12 months, the rate of interest payable on new housing loans has corrected by over 0.75% and now the cheapest housing loan is available at 10 %.

This year 2013 too, home loan interest rates are expected to go down further. With the RBI announced its quarterly review in the last week of January, 0.25 % rate cut done.  whereas for the year they expect around 0.75 % to 1% reduction in interest rates.

CIBIL credit scores are also playing an active role in the housing loan market.

Mr. Pankaj Maalde, Head, financial planner, Apnapaisa.com explains,

' 'Every home loan lender will first call for CIBIL report. However one should know that if he stood as guarantor then any default by original borrower will also affect his / her scoring.

Smart housing loans are available for customers, where borrower can park his / her idle funds with bank in a current account & save on the interest for the time he / she has kept the money in the current account.

Tailor made life insurance products covering the housing loan outstanding too are on offer, to ensure that the housing loans remains with the family, in case the borrower dies before paying off the loan.

Reserve Bank of India (RBI) too has come out with directions for banks and housing finance companies (HFCs) to do away with prepayment penalties on housing loans.Barring the balance transfer on fixed rate loans, all other pre - payments of home loans do not attract any pre- payment penalties.

Mr. Rajiv Raj, Director, Credit Vidya explains, However, before they switch, they should do the math on the benefits of doing the transfer to the lower rate. Customers are expected to benefit further, as recently an RBI panel suggested banks to offer housing loans up to 30 year tenure which should also qualify for priority sector advances.The potential borrowers benefit on the back of low equated monthly installment (EMI) compared to an EMI payable on a 20 - year loan.

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