| Five steps in choosing the right loan:
The present housing loan marketplace requires appropriate research before deciding for a loan. One should not get carried away by tricky advertisements. Rather than banging head with terms like special interest rates for fixed tenure, hidden terms and conditions etc its better to opt for the bank that offers the lowest EMI (equated monthly installments).
1. Gather data on interest rates
It is a wise proposition to get interest rate information from more than one source and compare the offers. A long term loan will mean lower EMI but probably a higher interest rate and result in paying more for the house.
2. Enquire fees
The processing fees, administration charges and the quantum of loan should be discussed properly. It is better to have a written statement of all fees connected to the loan from the lending bank itself.
3. Pre-approval letter
Sometimes banks issues a pre-approval letter agreeing to finance a certain amount. This gives a significant weight and sellers deal seriously. One can expect a modest price range and negotiate a better deal. This is more important if one is taking bank loans for commercial properties.
4. Negotiate loan
Most loaners will bring down their charges for customers with a dependable reference, so do not be shy about bargaining. A bargain deal will easily fetch a home loan at around 0.25-0.5% lower than official rates.
5. Avoid greedy lending
Do not deal with person who asks you to include fictitious data on your home loan application to get quick approval. Also do not get pressured into borrowing additional finance than needed.
Loans provided by different Banks and Housing Finance Companies in India
1. Bank of India- Home Loans
STAR HOME LOANS
Provides loans to purchase a Plot for construction of a House, to purchase/construct house/flat, as well as for renovation/repair/alteration/addition to house/flat, furnishing of house, Takeover of customer's housing loan extended by other Banks/F.Is /NBFCs at highly flexible and liberal terms and conditions.
2. Citibank Standard Home Loan
What is the eligibility for salaried individuals?
• Gross annual income of Rs 1,00,000 or above.
• 23 years of age and above maximum age of 58 years or retirement age, whichever is higher at the time of loan maturity.
What is the maximum Home Loan Amount I can take?
• Home Loans are available from Rs 2.1 Lakh to Rs 5 Crore.
• Loans up to Rs 2 Crore for self-construction.
What is an EMI?
Citibank Home Loans are repaid through EMIs (Equated Monthly Installments) over the period of the loan may be its Home Equity Loan, Home Extension Loan or Home Improvement Loan, Home Construction Loan.The EMI is calculated at the prevailing Variable Interest Rate. The table below shows indicative EMIs for different periods for a loan of Rs 1 lakh. Click here to find out the EMI on your loan.
| Loan Tenure(in years) |
EMI per lakh (in rupees) |
| 5 |
2028 |
| 7 |
1559 |
| 10 |
1214 |
| 15 |
956 |
| 20 |
837 |
| 25 |
772 |
How are the interest rates calculated?
Citibank offers competitive interest rates that are calculated at daily reducing balance.
Note:-Other banks providing loans and are popular are Dena Bank, Bank of India, HSBC, Standard Chartered- Grindlays, PNB to name a few.
|
Home Loans
