ICICI Bank Extraa Home Loan is a new Home Loan product for retail borrowers. Currently, ICICI Bank Extraa Home Loan is available only in Greater Mumbai, Delhi & NCR, Bangalore and Surat. It seems that ICICI Bank is test marketing the product before full-fledged launch. These 4 cities are selected considering the target group and concentration of potential borrowers in mind. ICICI Bank Extraa Home Loan is available for Home Loans of up to 75 lacs. In layman terms, ICICI Bank Extraa Home Loan is useful for the borrowers who fall short on eligibility criterion due to age or income factor. As ... Read More
Why do borrowers prefer SBI Home Loan?
SBI Home Loan is most preferred among the borrowers. This is based on a study done by me during last 6 months. On my blog, i receive maximum queries on SBI Home Loan. Though i always take neutral approach and suggest options like SBI, ICICI Bank or Axis Bank to potential borrowers. I personally interacted with many borrowers to understand why they prefer SBI Home Loan. Through this post, i would like to share the experience of blog reader's on SBI Home Loan. Towards the end of the post, i have highlighted few cons/problems faced by my blog readers so that potential borrowers can make an ... Read More
Impact of Base Rate Cut on Home Loans
Impact of Base Rate Cut on Home Loans is the hot topic these days. RBI surprised twice by out of cycle Repo Rate cuts of 25 basis points each or 0.25%, Banks were reluctant to cut Base Rate. Despite the public displeasure of both RBI and the Govt, Banks stood firm on their stand. As i highlighted in my post that RBI is King without Kingdom, a very little can be done by RBI in this regard. Rather i will say, its a cartelization similar to that of Telecom and Airline Companies. Only 2 banks i.e. Union Bank of India and United Bank of India cut the base rate to benefit customers. As these banks ... Read More
How to find out Right Home Loan Amount?
What is Right Home Loan Amount?. There is no right or wrong answer to this question. Both under borrowing and over borrowing are dangerous for financial health of an individual. We cannot ignore this question because it directly impacts your interest outflow. Three important pillars of Home Loan are Monthly EMI, Home Loan Tenure and Home Loan Amount. All 3 are interlinked to each other. I have not included Interest Rate as Interest Rate is not in control of a Borrower and is fixed. EMI, Tenure and Home Loan Amount are variable and optimum mix can be calculated. To influence any of these, ... Read More
5 Tips to Prepay Home Loan Faster
For any Home Loan Borrower, to prepay Home Loan is topmost priority. As i discussed in my earlier posts that Home Loan interest increase the overall cost of property. Some of my readers mentioned that they are availing tax deduction but they ignored the fact that they lost HRA (House Rent Allowance) component. At macro level, if your property is appreciating at 10% and at the same time you are paying 10% interest on Home Loan then net/real appreciation is NIL. Currently world economic crisis is keeping property prices under check. Instead of appreciation, property rates are decreasing in most ... Read More
Home Loan Prepayment – 5 Important Points
Home Loan Prepayment is financially beneficial for Home Loan Borrowers. It helps to reduce Interest burden thus overall cost of property. Any type of debt including Home Loan is not good for financial health of an individual. Average Home Loan tenure in India is 8 years which means Home Loan Prepayment is preferred by borrowers to clear off Home Loan. Normally Home Loan Prepayment is done when we receive annual bonus or any exiting investment mature. As i mentioned in my other posts also that Home Loan Interest increase the overall cost of property. Assuming, your current Home Loan ROI is 10% ... Read More