I have taken a home loan from SBI and my house is under construction .

No ,you can not take home loan benefits before completion of house. the important point is that if you completes your house before end of f.y i.e before or on 31.03.2008 then all the benefits will available to you.so in simple words benefit is available if house is completed by the end of the previous year. now ,what is the meaning of completion of house? “a residential house property the income from which is chargeable to tax under the head Income from house property” In simple words no completion certificate is required from any authority what so ever ,u r the boss to decide whether its complete or not ,but it should be logical like you have basic facility in it according to general terms .so completion of house is a subjective term ,but its fulfill all the conditions if some one starts living in that house. so dear try to complete it by 31.03.2008 you have two month and you can avail all the benefits.

How about taking loan from REPCO bank? Friend is offering me 25 lakhs loan to make a home?

My friend who is manager in Repco is interested to give me 25 lakhs as home loan. Interest will be more or less like the same as other banks. But my question is, is there any problem if i take loan from this kinda of banks? She is trying to improve the banking operations, thats why they planned to give loans to reliable persons…she says…! what should i do now?

Ensure that your documents are kept in safe custody and the services are not person centric i.e tomorrow somebody comes as manager in place of your friend he should provide the same service. Thats it.

The finance minister Pranab Mukherjee provided relief to a large section of home loan borrowers by announcing interest subvention of 1% on all housing loans up to Rs10 lakh to individuals, provided the cost of the house does not exceed Rs20 lakh” this loan rebate will be available for one year.

This means that 1% of interest burden will be borne by the government. The home loan borrowers will have to pay less EMI to banks and government will reimburse the banks.

This will translate to a one-time saving of Rs7,596 for anyone who takes a Rs10 lakh, 20-year loan at an interest rate of 9%, and is given a subsidy of 1%, taking his effective interest rate down to 8%.

This interest subsidy will be routed through schedule commercial banks and the housing finance companies registered with the National Housing Bank.

PSU Banks have said that the home loan balance transfers from private sector banks and housing finance companies are welcome. The quality of assets is the main issue for Public sector banks regarding home loan transfers from their private sector counterparts.

Home loan balance transfer happens when there is a wide interest rate differential on home loans between two different banks. Currently this gap is very wide between the private and public sector banks.

Consider this: On a Rs 30-lakh home loan of 20 years, PSBs are currently charging a floating interest rate of about 9.25 per cent, while select private sector banks/HFCs are quoting an interest rate of 9.75-10.50 per cent.

These high interest rates are forcing the private sector bank customers to think of switching to the public sector banks for their home loans.

State Bank of India, has witnessed a tremendous rise in applications for takeover of home loans. For Andhra Bank too a large portion of its home loans has come from take over of loans from private sector banks. However, not all public sector banks encourage take over of loans due to the uncertainty and risk involved. If interest rates fall again, there is a possibility that the customer may shift his loan again. We do it (balance transfer), but only selectively.

LIC Housing Finance Ltd today reduced interest rates for existing home loan borrowers by 75 basis points. The housing finance company said the cut was a result of a reduction in cost of funds. The company said the revised rates, the lowest in almost two years, would be effective from April 1.

Interest rates on home loans will now be between 10-10.50 per cent against 10.75-11.25 per cent earlier.

LIC Housing Finance, which competes against the likes of the State Bank of India, HDFC and ICICI Bank, has also announced a special rate of interest for customers opting for floating rate loans.

This rate reduction is the second such move by the company in the past three months.
It had earlier reduced the interest rates by 75 basis points for its existing home loan borrowers, effective from January 1 this year.

The new floating rate has been fixed at 8.75 per cent for loans up to Rs 30 lakh. For loans above Rs 30 lakh and up to Rs 75 lakh, interest rates will be 9.50 to 9.75 per cent and for loans above Rs 75 lakh, interest will be charged at the rate of 10.50-10.75 per cent.

Hyundai Motor India Limited has partnered with Syndicate Bank for quick disbursal of auto loans for Hyundai vehicles in India. The bank shall offer attractive loans packages on Hyundai vehicles to potential customers. Syndicate bank has more than 2200 branches pan India. It has partnered with Hyundai to reach out to wider client base and make loans easy and convenient to Hyundai customers.

Hyundai Motors India Limited is India’s largest car exporter and second largest car manufacturer in India. It has its manufacturing unit in Chennai and uses Chennai port for export of small cars from India.

Hyundai launched its most awaited model, Hyundai i20, in India on December 28, 2008 which took many by surprise. The new model from Hyundai has been extremely successful and has received raving reviews from the customers as well as the auto critics..

Dewan Housing Finance has emerged as the front-runner to buy, IDBI Home Finance, having put the highest bid amongst the three shortlisted bidders.

A senior IDBI Bank official said,” IDBI Bank’s Board will meet on Friday to “consider and approve the selection” from amongst the three shortlisted companies
“In terms of pricing, Dewan Housing Finance has more weight than the other two companies which are in the race. However, our Board will take the decision on whom to sell.”

The two others in the fray to buy the Pune-based home finance company are Tata Capital and Religare Enterprises. IDBI Capital is acting as the advisor to IDBI Bank for the deal.

Earlier, the bank had received Expressions of Interest (EoIs) from over a dozen entities from which it has now zeroed in on the above three.

The home finance unit has a loan portfolio of over Rs 2,700 crore with a presence in 18 centres pan-India.

IDBI Bank decided to sell its subsidiary since it also sells home loan productsand felt that offering the same products from two group entities did not make business sense.

Leading private-sector housing finance company, Dewan Housing Finance (DHFL), on Wednesday cut its home loan rates for both new and existing customers by upto one per cent.

With the reduction, customers can now avail loans upto Rs 20-lakh starting at 9.75 per cent while for loans above Rs 20-lakh, the interest rate starts from 11.25 per cent, the company said.

The company has slashed interest rates for new customers by 0.5-1 per cent with immediate effect while for existing borrowers the reduction will be by 0.25 per cent.

Public sector housing finance firm Housing and Urban Development Corporation has reduced interest rates on home and project loans by 50 to 125 basis points with effect from January 1, 2009.

Hudco Chairman and Managing Director K.L. Dhingra announced the revised rates of interest and said they would be effective from January 1, 2009, according to the statement.

“Hudco has reduced its rate of interest on project loan by 50 basis points and individual home loan (Hudco Niwas) between 100 and 125 basis points for loans up to Rs 20 lakh for floating rate of interest,” it said in a statement.

For home loans up to five years, the interest rate has been lowered to 10.25 per cent from 11.50 per cent, a cut of 125 basis points, a senior official of the housing and infrastructure lender said.

For home loans with payback period beyond five years, the interest rates have been cut by 100 bps to 10.75 per cent from 11.75 per cent.

Though there has been no change in rates for Hudco’s lending to private commercial sector, interest rates for project loans to government sector has been cut by 50 basis points.

At a time when many of its peers have scaled down FY 09 credit growth targets owing to challenges in market, state-run Vijaya Bank has decided to scale up its loans in ‘productive segments’ such as SME in the months ahead, a top official said.

Vijaya Bank’s Executive Director, S C Kalia said, “There is no question of scaling down our credit disbursals. In fact, we are aggressively lending to micro, small and medium firms and infrastructure projects. These sectors are the growth-drivers of the economy.”

Vijaya bank also expects to bring down its badloans significantly in the current fiscal year. The bank’s gross Non-Performing Assets (NPA) stood at around 1.75 per cent and net NPAs at 0.75 per cent as on September 30, he added.

The bank has a total credit-base of around Rs 37,000 crore and a deposit-base of Rs 52,000 crore. The lender has seen a year-on-year credit growth of 37 per cent as on September 30, 2008 and hopes to achieve around 25-30 per cent growth in FY 09, Kaliya said.

Following the rate cuts from the Reserve Bank last Friday, Vijaya Bank has reduced its deposit rates by 0.5 per cent across different tenures with immediate effect

“In the current market scenario, the corporate and SME clients are facing issues owing to the impact of global financial crisis in this market. The bank will provide adequate finance for viable projects to support these companies,” Kalia said.

One reason to compare home loans is to learn about the different options and loan features available to you. A home loan offset account, for example, could save you thousands of dollars over the life of your mortgage.