Loan for personal Home at Low Intrest rate

The high interest rates have been painful for borrowers and many are finding it tough to manage and repay existing loans. Commercial loan The commercial loan segment is not in the limelight but the rate hike in these accounts impacts the midsized businesses. Usually, small and medium businesses run on small margins, and therefore do not have much of a cushion to absorb the additional interest burden. During a high interest rate regime, small and medium businesses should reduce their dependence on bank loans and go for alternate funding for their business needs. Home loan The interest rates on home loans have gone up quite significantly. Although the RBI has indicated a pause on further key rate hikes, it does not mean the interest rates will start coming down in the short term. Home loan borrowers should remain in touch with their banks for special schemes to reduce the interest rate. Also, home loan borrowers should plan alternate sources of income or reduce the loa...

what the central bank might do to rates shortly, and pat comes his considered response about repo rates. And about what the BoI will likely do in response. In an interview, he holds forth on the bank’s future plans and the path ahead for the banking industry. What is your outlook on interest rates? A pause (in interest rates) is definitely confirmed and going forward, interest rates would start moving down. This may happen even in the forthcoming monetary policy review (on January 24). The cut may be in the repo rate (now at 8.5%). Bulk of the reduction could happen in the first and second quarter of the next financial year. In the monetary policy review, the repo rate cut may be 25 basis points (bps). If the Reserve Bank of India (RBI) cuts the repo rate in January, will you reduce lending rates? Yes, we will do it immediately. This is because, if my borrowing cost is going down, I need to pass it on to the customers. What is your outlook on deposit and lending rates in...

SBI has cut processing fees on home loans by half, a move expected at acquire a bigger tart in the home loan market and giving competition to private banks and housing finance companies. "The decision is meant at creating goodwill. With regards to fees charged from retail customers, SBI will charge only to the extent of covering its cost and not earn profit on it,". The bank has reduced processing fee on home loan above Rs 75 lakh to Rs 10,000 from Rs 20,000. For loans in the range of Rs 30 to Rs 75 lakh, the fee has been lowered to Rs 6,500 from Rs 10,000 earlier. The processing fee for loan below Rs 30 lakh continues to be 0.25% of the loan amount. The new charges will be effective from January 11. Axis Bank and ICICI Bank charge 0.5% of the loan amount sanctioned as processing fee, while housing finance leader HDFC charges 0.50% of the loan amount with a cap of Rs 10,000. So, on a loan of Rs 50 lakh currently, SBI's processing fee would be the cheapest...

The SIAM estimated that car sales would grow by 11 to 13 percent in 2012-13, well above the zero to two percent growth it currently expects this fiscal year. Sales of new cars in India are likely to pick up in the next financial year, an industry body predicted on Tuesday, after months of flattish growth due to high borrowing costs and fuel prices. Sen said he expected India's central bank to announce "some policy measures" in coming months that would help boost economic growth and kick-start demand for cars. "The current quarter and the next fiscal year should be better," SIAM senior director Sugato Sen. Since November, car sales have improved slightly but remain subdued with many potential buyers deciding to defer their purchases or cancel them altogether because of costly Car loan and rising fuel costs. The cost of borrowing has risen due to high inflation, which the Reserve Bank of India has tried to rein in by raising interest rates 13 tim...

With inflation remaining high, the Reserve Bank on Monday indicated that it may go for another round of interest rate hike tomorrow even though the step may impact the economic growth. "Inflation risk persists. The policy choices have become more complex. In this backdrop, the monetary policy trajectory will need to be guided by the emerging growth- inflation dynamics even as transmission of the past actions is still unfolding," RBI said in its review released on the eve of mid-year monetary policy announcement tomorrow. Though the risk to growth is becoming visible, the challenge of bringing down inflation to an acceptable level on a sustainable basis remains significant, it further said. On account of various global and domestic factors, the RBI said, "growth in 2011-12 is likely to moderate slightly from that projected earlier". The RBI had projected the economic growth, or GDP expansion, for the current fiscal at 8 %, down from 8.5 % in 2010-11....

Faced with a sharp decline in home sales and declining cash flows, property developers are doling out minor discounts and freebies to boost home sales during the ongoing festive season. Mumbai-based property developer Sunil Mantri Group is providing “extra cheer” to its buyers. Under its offer ‘Mantri Mahotsav’, it promises cash discounts or freebies ranging from Rs 30,000 to Rs 1 lakh across its housing projects in Mumbai, Bangalore and other cities. The properties are priced between Rs 30 lakh and Rs 1 crore. “Buyers have waited for long and they have realised that interest rates will stay high for the next one to two years. They are also seeing that prices are not declining,” says Sunil Mantri, chairman and managing director of the Sunil Mantri Group. Nirmal Lifestyle, another city-based real estate firm, offers free stamp duty and registration in its Lifestyle City project in Kalyan, on the outskirts of Mumbai. A two-bedroom apartment costs nearly Rs 34 lakh and the...

Deutsche Bank plans to nearly double its mortgage book in India to Rs 3,000 crore by the end of next year. The move is in line with the bank's strategy to maintain its focus on secured assets, following the sale of its credit cards business earlier this year. The mortgage book, which is currently estimated at Rs 1,800 crore, comprises Rs 1,450 crore of home loans and Rs 350 crore of loans against property . Deutsche Bank currently lends Rs 80 crore of these loans every month. The average size of the loans is in the range of Rs 70-75 lakh. “We have started setting up more distribution points and adding capacity in our sales force. We expect our mortgage book to nearly double by the end of the next year,” said Prashant Joshi, managing director and head (private and business clients), Deutsche Bank, India. The foreign lender currently employs 18 sales managers and around 100 agents. Besides ramping up its sales force, the bank plans to offer value-added services like lif...