CITI BANK HOME LOANS

WITH THE POWER PACKED FEATURES OF CITI BANK HOME LOANS MAKE YOUR DREAM HOME A REALITY.
TOP 3 REASONS TO GET A CITI BANK HOME LOANS.
1. ATRACTIVE INTEREST RATES.  2. HOME LOAN UPTO 80 % OF THE PROPERTY VALUE  .3.NO PENALITY FOR PARTIAL PREPAYMENT.

HSBC SMART HOME LOANS

BUYING A HOME IS A LONG TERM FINANCE COMMITMENT.  SMART HOME IS A SIMPLE WAY TO USE YOUR SAVINGS SMARTLY BY LETTING YOU DECIDE HOW MUCH INTEREST TO PAY. REPAY YOUR INTEREST SMART HOME OFFERS COMPETITIVE INTEREST RATES AND MORE.
YOU CA USE YOUR SMART HOME ACCOUNT FOR OTHER REGULAR BANK TRANSACTIONS.
YOU CAN SAVE MORE ON YOUR INTEREST PAYMENTS BY MERELY DEPOSITING YOUR USUAL SAVINGS IN THE SMART HOME ACCOUNT.
INTEREST RATE TYPE FLOATING INTEREST RATE.

IMPACT OF BUDGET ON HOME LOANS

Interest paid on the home loan

As per Sec 24(b) of the Income Tax Act, 1961 a deduction up to Rs. 150,000 towards the total interest payable on the home loan towards purchase / construction of house property can be claimed while computing the income from house property. (The deduction stands reduced to Rs 30,000 in case of loans taken prior to March 1, 1999). The interest payable for the pre-acquisition or pre-construction period would be deductible in five equal annual instalments commencing from the year in which the house has been acquired or constructed. Please remember that in case of self occupied property, this deduction is allowed only for one such self - occupied property. The interest towards home loan taken for purchase, construction, repairs, renewal or reconstruction of house property is eligible for deduction under section 24(b).  

Principal repayment of the home loan

As per the newly introduced Sections 80C read with section 80CCE of the Income Tax Act, 1961 the principal repayment up to Rs. 100,000 on your home loan will be allowed as a deduction from the gross total income subject to fulfilment of prescribed conditions. Let us consider a hypothetical example. Your taxable Income: Rs 5,50,000 principal repayment for the same year: Rs 1,10,000 and Interest payable for the year : Rs 1,60,000 Total Deductions allowed: Rs 2,50,000 (Rs 1,50,000 towards interest payable & Rs 1,00,000 for principal repayment of the loan) Thus, your taxable income will reduce to Rs 3,00,000 ( Rs 5,50,000 - Rs 2,50,000 ). Use the Tax Savings Tool (on the left) to ascertain the proper tenure of the loan you must take to minimise your post tax cost of the loan. If you have already taken a loan, it could be useful to refinance the same today at a lower interest rate and a higher tenure using the Refinance Tool.

The issue of Stamp Duty on Registered Mortgage Deed

Normally the lenders will ask you to create a registered mortgage deed on the property which they will retain with them as a security against your loan. As this is a legal document, the prevalent stamp duty needs to be paid to the State Govt. In the state of Maharashtra, this duty is about Rs. 5000 for a loan below Rs 5 lacs and about Rs. 35000 for a loan above Rs 20 lacs. Some lenders like HDFC do not ask for the Registered Mortgage Deed but only take the original Title Papers of the property as a security. Thus customers of HDFC do not pay the stamp duty to the respective State Governments.

Some States have taken this matter to court as they are losing revenue. Some of the lower courts have ruled in favour of the State Governments and asked HDFC to make good the Stamp Duty for all past customers along with interest. The matter is now pending with the Supreme Court. We feel that the ruling will again go in favour of the States. We are not sure if HDFC would be asked to pay up a large amount along with interest, which may ultimately be passed on the  existing customers. Any new customers going to such lenders must be aware of the risk of a legal ruling that may result in a future cash payment along with interest.

Flexible Loan Repayments

If you are a salaried employee, banks look at your current salaries while deciding how much they can lend you. The fact is that your salary can only increase as time goes by and your ability to repay larger loan amounts will only get better. Some banks now offer a flexible repayment plan that allows you to pay larger portions of the loan in the later years. Your initial monthly payments are kept low. IDBI Bank, HSBC and Citibank offer Flexi repayment option loans.  Flexi repayment loans are now available.

 Special Home Loan schemes:

Standard Chartered Bank - Home Saver Account. Along with the Home Loan, your will get a FREE current bank account into which you may deposit your monthly salary. The EMI for the loan will be automatically reduced from your account. The excess balance in your savings account will be saved interest that will be adjusted against your future EMI payments. The bank claims that the effective interest rate gets reduced by up to 45% because of this scheme.  One can deposit and withdraw your money (salary and other income) whenever you need, without any charges. Interest is calculated on daily balance and applied monthly.

Refinance your loan:  Transfer your existing high interest loan to a lower interest Standard Chartered Bank home loan (as per the applicable current rates) and save on interest. We will also finance the prepayment charges if you so wish.

CITI Bank; CITI Bank offers loans with no guarantors. Most banks require that you present a guarantor who will back you up if you default on your loan repayment. It can often be embarrassing to ask friends to stand guarantor as most banks do not accept relatives as guarantors. Loan up to Rs. 5 Crore  &  Flexible repayment tenure up to 25 years. Citibank gives home loans up to 80% of the property value. Flexibility to pay interest only during construction period also no penalty for partial pre-payments. Citibank offers a flexi-savings account to reduce your cost of borrowing. The bank will automatically open a Saving Account from which you can give standing instructions to deduct the EMI payments for the loan. You can then prepay the loan at any point in time and be given instant credit for the same, in case you get a large lump-sum annual bonus from your employer. Should you require money in an emergency at any point you can avail of a over draft on this savings account at an interest rate that is the same as that on your Home loan. This works out much cheaper than taking an over draft on a normal savings accountable.

DEWAN HOUSING FINANCE AND LIC HOUSING FINANCE: Both finance companies offer consumer loans to their existing Home Loan customers at a discount to market rates. The customer has to be a housing loan borrower for the period not less than 6 month with a good repayment record. FREE TRIPLE PROTECTION PLAN in the form of Loss job of customer, Personal accident life cover and Property cover against natural calamities

AXIS BANK: AXIS BANK gives free property and personal accident insurance cover along with the loan. It offers: 1.   Attractive Interest rates. 2.    Balance transfer facility is available. 3.    Door step service    Option to choose between Fixed and Floating rate of interest.

Housing Development and Finance Corporation; HDFC offer Flexible (Customised) Repayment Schemes, keeping in mind the fact that each individual has a unique problem requiring unique solutions, HDFC has developed various repayment options like Step Up Repayment Facility, Flexible Loan Instalment plan , Balloon Payment Scheme and Acceleration of EMI.   Para Passu/ Second Mortgage Arrangements: HDFC has a tie-up with a large number of Public Sector Organizations and banks which enables us to offer loans to your employees with the flexibility of their spouse also availing a loan from his/her own employer.

Safe Document Storage Facilities: HDFC has state of art storage facilities, which are theft and fire proof, at various locations where loan and property documents are stored. In this way valuable documents are stored safely over the period of the loan and are released almost immediately after a customer repays his loan. A customer, after availing of a loan can approach HDFC anytime thereafter to increase the Equated Monthly Instalment which will help him repay the loan faster. Home Conversion Loan offered to its existing customers who are interested in moving to a new house. Through this scheme customers can apply to have their existing loan transferred towards the purchase of the new home. Customers may also apply for an additional loan amount for the purchase of the new house. This gives the customer the option of selling their existing house, if they wish to, without having to repay their old loan. The fixed rate loan can be converted to floating without any penalty charges. However, you will be charged 2% if you refinance the loan from another company.

HDFC Ltd offers Dual Rate Home Loans :A new limited period 8.25% fixed interest rate product. This offer is applicable for all fresh loan applications received between 1st May and 30th June 2010 subject to completion of documentation and payment of requisite processing fees by 30th June 2010. Such loans must be disbursed in part/full by 30th June 2010. These offer is also available to all sanctioned but undisbursed loans as of 1st May 2010 subject to the same being disbursed in part/full by 30th June 2010.. A customer, after availing of a loan can approach HDFC anytime thereafter to increase the Equated Monthly Instalment which will help him repay the loan faster.

Home Conversion Loan offered to its existing customers who are interested in moving to a new house. Through this scheme customers can apply to have their existing loan transferred towards the purchase of the new home. Customers may also apply for an additional loan amount for the purchase of the new house. This gives the customer the option of selling their existing house, if they wish to, without having to repay their old loan. The fixed rate loan can be converted to floating without any penalty charges. However, you will be charged 2% if you refinance the loan from another company.

HDFC Ltd offers Dual Rate Home Loans - a new limited period 8.25% fixed interest rate product. This offer is applicable for all fresh loan applications received between 1st May and 30th June 2010 subject to completion of documentation and payment of requisite processing fees by 30th June 2010. Such loans must be disbursed in part/full by 30th June 2010. These offer is also available to all sanctioned but undisbursed loans as of 1st May 2010 subject to the same being disbursed in part/full by 30th June 2010.

HUDCO will waive the last 2 EMI payments on the loan if the customer has a perfect repayment record with no bounced cheques. The loan amount initially taken must exceed Rs. 5 LAKHS and no prepayments where to have been made during the tenure of the loan. This is not available for the Floating rate loan. There is a discounted start-up fee for Government employees. The Administrating fees stand reduced from 0.7% to 0.5% only. free triple insurance - property cover, earthquake cover and personal accident cover given free along with the loan ( not available for the Floating rate loan). You can prepay the entire loan in any year without any prepayment penalty. Each prepayment has to be at-least 10% of the outstanding loan. How-ever  the floating rate loan has a 1% prepayment penalty.

HSBC offers Smart Home, a Home loan PLUS a Saving Account, which enables you to save interest on loan as well as reduce the tenor of the home loan. One can deposit money and withdraw the same from the account anytime at no cost. The account can be used to deposit extra savings which results in savings on interest payments due on Home Loan. It is because the principal on which loan interest is calculated, is the principal outstanding minus the savings one has deposited in the account every month over and above the EMI. HSBC launches mortgage loan product 'Smart LAP'. 

ICICI BANK HOME LOAN: ICICI launches a 25 year tenure home loan, the longest available tenure in the market today. ICICI also launches a variable rate loan with a monthly rest basis versus the regular fixed rate loan that is on an annual rest basis. No guarantors are required for loans up to 20 years in most cases. No pre payment fees for any part payment as long as the loan is not fully retired, else 2% charge on pre paid amount. You can repay up to 33% of the outstanding loan in any year without paying penalty. Free personal accident insurance. Sanction approval without having selected a property. Special 100% funding for select properties .Higher eligibility for self-employed professionals through segment-specific schemes.

KOTAK BANK offers flexi home loans / FD linked home loan.

Flexi Home Loans:  You get protection against interest rate volatility during a 3 year period and also the benefit of any rate decrease at the end of each 3 year period. So you get the certainty of a fixed interest rate, along with the flexibility of a floating rate. The interest remains unchanged for 3 years, at the end of which it is reset at prevailing index rate and gets fixed for the next 3 years. This cycle continues till the end of the loan tenure. The impact of any change in the index rate is given after the three year period. It also provides the opportunity of lower interest rate compared to conventional fixed rate loans.

FD linked home loans: A unique offering, where the FD linked home loan is linked to the Bank 1 year Retail Fixed Deposit Rate instead of the Retail Prime Lending Rate (RPLR). So, here the home loan interest rate changes only if the linked Fixed Deposit rate changes. To avail this facility you don't need to maintain a Fixed Deposit with the bank to avail this facility. This home loan option is available with the Flexi home loan as well as with the conventional floating rate home loan.

KOTAK BANK OFFERS:  1. Attractive interest rates.2.Free Personal Accident insurance.3.Simple documentation with speedy processing. LIC HSG Finance Ltd. will lower quoted interest rate by 0.5% for loans covered by a life insurance cover that is taken from LIC. The life cover must be taken for a minimum period that covers the tenure of the Home Loan.

LIC Housing Finance launches Reverse Mortgage for senior citizens.

New Fix-O-Floaty: For home loan borrowers opting for short-term fixed rate, the new Fix-O-Floaty offers loans at a competitive rate of 8.90 per cent fixed up to March 31, 2012, for loans up to Rs. 1.50  crore  and thereafter on floating basis.

Advantage 5: LICHFL has brought out a product called 'Advantage 5'where under the lending rates are fixed at 9.25 per cent for five years and thereafter on floating basis.

SBI (State Bank of India) offers Home Loans with no start-up costs. Most banks charge as high as 2% as processing and administrative fees .Prepayment is 2% if the entire loan is pre paid else it is 0%.

Avoid this penalty by prepaying up to 99% of your loan if need be. FREE Life Insurance cover for outstanding loan amount. FREE personal accident insurance cover up to Rs 40 Lac. SBI home loans now offers Interest Rates concessions on GREEN HOMES in accordance with S B I' s commitment to Environment protection.

SBI Easy Home Loan Offer Interest rate during the first year (i.e. till first anniversary date from the date of first disbursement) is fixed at 8% p.a.Interest rate during next two years is fixed at 9% p. a

Interest rate after three years may be Fixed or Floating as per the borrower's choice made at the time of sanction. If floating rate option is chosen, then the rate will be 2.5% below SBAR. If fixed rate option is chosen, then the rate will be .75% below SBAR prevailing on the third anniversary date from the date of first disbursement, and shall have a reset frequency of 5 years from the third anniversary date of the loan. Fixed interest rate shall be subject to force-majeure clause.(SBAR = 11.75%p.a.) .

Bank of Baroda

Free Property and Personal Accident Insurance available for stipulated tenure of loan.

Free Credit Card - "Paras" card (Complimentary for first year) to all new home loan borrowers with loan limit of Rs. 2/- Lakhs and above. Advance up to 90% of the principal amount of home loan repaid for any requirement ('AAA').

As per current IT provisions - Interest on loan up to Rs. 1.5 Lakhs per annum is exempt from income tax (Under section 23/24(I) of the Income Tax Act) .Interest rate on home loans sanctioned on or after 16.12.2008 and up to 31.12.2009

For 20 years Up to Rs. 5.00 lacs interest rate will be 8.50% & Above Rs. 5 lacs & up to Rs 20 lacs interest rate will be 9.25% (The given rate is for the first 5 years. The rate of interest shall be reset after 5 years from the date of drawl of the first instalment and borrower will then have the option for going for a fixed rate or floating rate of interest) .

IDBI Home Finance Ltd. offers Home Loans up to 90% of the value of the property and 100% in some new projects. Prepayment penalty of 0% for up to 4 prepayments in each year. The entire loan can be retired without incurring any penalty. Free accident and property insurance.

Union Bank of India has extended special home loan scheme. Union Bank of India is offering interest rate of 8.5% for 20 years between 1 Lac to 50 Lac Loan amount as a special home loan scheme.

Other attractive features.    No prepayment penalty.    Flexible repayment schedule .    Easy and convenient EMIs.    Loan sanctioned within 72 hours of receipt of application in full as per requirement.  Option to pay interest on a daily reducing balance basis.

Punjab National Bank and IDBI Bank (Industrial Development Bank of India Limited) offers special schemes.     Flexibility of choosing between Floating or Fixed interest rate .   EMI on monthly reducing balance.    Personalised door-step service.    Simple  documentation.    Legal and technical assistance.    Balance transfer facility.    Reassessment and adjustment of applicant's loan eligibility in case of change of income and residence status.

Home Loan (Fixed) :Fixed Home Loan interest rate for 3 years 12.25% & 5 years 12.50%.

Reverse Mortgage Loan (Floating):

Fixed (re-phasement after every 5 years ) interest rate 12.25%

Special Home Loan with a Life Insurance ::

You can avail of a special insurance cover on your IDBI home loan for a small premium. For most of us, buying a house is an important milestone in our lives. IDBI Bank, understand your concerns. Home Loans are now accompanied by a specially-designed insurance cover. So even if calamity strikes, your family needn't worry about the loan.

GENERAL GUIDENCE FOR CALCULATING INTEREST

THE DATA ON INTEREST RATES AS WELL AS LOAN PRODUCT AVAILABILITY CHANGES FREQUENTLY PLEASE CHECK THE RATES WITH THE RESPECTIVE COMPANIES BEFORE FINALLY DECIDING TO TAKE
1.CALCULATE EQUAL MONTHLY INSTALMENTS(EMI)THAT YOU WILL PAY ON THE HOME LOAN BY PUTTING  LOAN AMOUNT, TENURE AND RATE OF INTEREST IN THE BANK APPLICATION FORM.
2. REPAYMENT SCHEDULE:CALCULATE THE BREAK UP OF THE EMI THAT YOU WILL PAY ON THE HOME LOAN BETWEEN PRINCIPAL REPAYMENT AND INTEREST REPAYMENT.  YOU CAN ALSO QUICKLY CALCULATE HOW MUCH OF THE LOAN IS STILL OUTSTANDING AT THE END OF ANY MONTH INCASE YOU ARE THINKING ABOUT REPAYING THE HOUSING LOAN.  REMEMBER THAT IN THE FIRST FEW YEARS OF THE LOAN TENURE MORE THAN 80% OF THE EMI GOES TOWARDS INTEREST REPAYMENTS.
3. LOAN AMOUNT OUTSTANDING: EMI CALCULATOR HELPS YOU TO DETERMINE THE BALANCE UNPAID LOAN OUTSTANDING AT ANY POINT DURING THE TENURE OF THE LOAN.
4. TOTAL COST CALCULATOR:THE TOTAL COST OF THE LOAN INCLUDES NOT ONLY THE INTEREST COST BUT ALSO UP-FRONT COST LIKE PROCESSING FEES, ADMINISTRATION FEES, LEGAL COSTS MORTGAGE FEES ETC.,  SOME LENDERS BEAR SOME OF THESE COSTS ON YOUR BEHALF WHILE OTHERS MAY WAIVE THEM.  THIS CALCULATOR USES A DISCOUNTED CASH FLOW MODEL  TO  DETERMINE THE TOTTAL COST OF THE LOAN IF YOU FEED IN THE RATES THAT YOU NEGOTIATE WITH THE LENDER. THE CURRENT TAX SAVINGS LEVELS AS ALLOWED BY REGULATIONS TO BE VERIFIED.IF YOU NEED TO FIND OUT THE CHEAPEST LOAN AMONG THE STANDARD HOME LOAN PRODUCTS AVAILABLE IN THE MARKET USE THE CHEAPEST LOAN MODULE.
5. PROPERTY PLANNEDR: THIS CALCULATOR HELPS YOU TO PLAN THE FINANCING OF THE PROPERTY INCLUDING SEGREGATION OF THE CASH/CHEQUE PAYMENTS,ESTIMATING YOU HOME LOAN ELIGIBILITY AND EMI
6.CAPITAL GAINS TAX CALCULATOR:.
7.EQVIVALENT MONTHLY RENT CALCULATOR:THERE  IS A COST ATTACHED TO PAYING UP A DEPOSIT TO THE OWNER OF THE BUILDING THAT MUST BE ADDED ON TO THE MONTHLY RENT THAT YOU PAY. THE CURRENT PRACTICE IS TO LEVY AN INTEREST OF 2% P.A AS AN OPPURTUNITY COST FOR YOU WHEN YOU GIVE THE LAND LORD AN INTEREST FREE DEPOSIT.
8. EQUIVALENT MONTHLY RATE CALCULATOR:  THERE IS A COST ATTACHED TO PAYING UP A DEPOSIT TO THE OWNER OF THE BUILDING THAT MUST BE ADDED ON TO THE MONTHLY RENT THAT YOU PAY.  THE CURRENT PRACTICE IS TO LEVY INTEREST OF 12% P.A AS AN OPPUTUNITY COST FOR YOU WHEN YOU GIVE THE LAND LORD AN INTEREST FREE DEPOSIT.
9. AREA CONVERTOR OR CALCULATOR
10. RENT VS BUY CALCULATOR;
11. TAX SAVING CALCULATOR:THIS CALCULATOR HELPS YOU DETERMINE THE ANNUAL TAX SAVINGS WHEN YOU TAKE A HOME LOAN.  THE  CURRENT TAX INCENTIVE LEVELS ARE SHOWN BELOW BY DEFAULT.  YOU CA EXPECT THESE LEVELS TO INCREASE IN FUTURE.  YOU CAN ESTIMATE YOUR FUTURE TAX SAVING BY CHANGING THE LEVELS OF TAX BREAKS, TRY TO OPTIMISE THESE TAX SAVINGS AS YOU ARE  LOCKED INTO THE LOAN FOR THE NEXT 15-20 YEARS.
12. BUDGET IMPACT ON THE HOME LOANS ARE ALSO IMPORTANT TO STUDY  EVERY YEAR.

SPECIAL SCHEMES OF BANK LOANS

AXIS BANK: OFFERS FREE PROPERTY AND PERSONAL ACCIDENT INSURANCE WITH HOME LOANS.
BANK OF BARODA: OFFERS  NO PROCESSING FEES FOR HOME LOANS AND TAKE OVER.
H D F C: OFFERS A CHOICE OF CHOOSE YOUR LOAN AS PARTLY FIXED OR PARTLY FLOATING .IT HAS LAUNCHED DUAL RATE HOME LOANS - A NEW LIMITED PERIOD 8.25 FIXED INTEREST RATE PRODUCT.
G I C: LUNCHES HOME GUARD LOANS A UNIQUE HOME LOAN WITH OPTION OF LIFE INSURANCE.
I C I C I: OFFERS FREE PERSONAL ACCIDENT INSURANCE WITH HOME LOANS.
KOTAK BANK; OFFERS FREE  PERSONAL ACCIDENTINSURANCE COVER WITH HOME LOANS.
D H F L: OFFERS SAMARTH A UNIQUE HOME LOAN PLAN FOR THE SELF EMPLOYED.
L I C: OFFERS "FIX-O-FLOATY"LOANS AT A COMPETITIVE RATE OF 8.90%FIXED UPTO MARCH 31,2012 FOR LOANS UPTO 1.50 CRORE AND THEREAFTER ON FLOATING BASIS.  ANOTHER NEW PRODUCT "ADVANTAGE 5" OFFERS FIXED RATE OF INTEREST AT 9.25% FOR 5 YEARS AND THEREAFTER ON FLOATING BASIS.
STATE BANK OF INDIA: LAUNCHES NEW PRODUCT EASY HOME LOAN WHICH OFFERS INTEREST RATE 8%P A DURING THE FIRST YEAR. INTEREST RATES DURING NEXT TWO YEARS IS FIXED AT 9% P.A.
STANDARD CHARTED BANK: NO GUARANTORS REQUIRED FOR TAKING A HOME LOAN.

HOUSING FINANCE BANKS AND COMPANIES IN INDIA

1.  AXIS  BANK LTD.,
2.  CITI BANK INDIA LTD.,
3.  GIC HOUSING FINANCE LTD.,
4.   HUDCO
5.   IDBI HOME FINANCE LTD
6.   PNB HOUSING FINANCE LTD
7  . BOB HOUSING FINANCE LTD
8.   CORPORATION BANK LTD.
9.   HDFC LTD
10. ICICI BANK LTD
11. INDUS BANK LTD
12  STANDARD CHARTED BANK INDIA LTD
13. CANFIN HOMES LTD
14. DEWAN HOUSING FINANCE LTD
15. HSBC INDIA LTD
16. IDBI BANK LTD
17. KOTAK MAHINDRA BANK LTD.
18. STATE BANK OF INDIA  .