The first budget of the Narendra Modi Government is to be unveiled on the 10th of July. There are high expectations from various sectors of the economy that are looking forward to delivery of a promise by Mr. Modi on “Aaache Din”. The economy is passing through high inflation coupled with forecasts of a poor… Continue Reading
Remember ‘0% EMI’ schemes? Banks made money, manufacturers and merchants exhausted their inventory and consumers spent with gay abandon (for electronic goods and household items) until RBI played the party pooper. Although 0% EMI schemes were discontinued after RBI ban, the importance of the potent combination of ‘convenient credit’ coupled with flexible payment options, was… Continue Reading
Taking serious note of borrower un-friendly home loan schemes introduced by banks in association with developers/builders, RBI has advised banks to refrain from making upfront disbursal of home loans to the builders without linking the disbursal to various construction stages of housing project. These subvention schemes, popularly known as 80:20 or 75:25 schemes, had gathered… Continue Reading
Buying a home is considered both an investment as well as an act of fulfilling a dream of living in own house. From a financial perspective, home loan is considered a good debt because you get tax exemption on loan payments and at the same time your asset appreciates with time. Tax exemption on home… Continue Reading
The new year has begun on a positive note for those planning to take on new loan and also for those borrowers who are already paying EMI against their home loan or a car loan. The RBI just announced a repo rate cut by quarter per cent (0.25 per cent) and this is likely to… Continue Reading
At this time of steep hike in petrol price and heavy inflation, there is one good news to cheer about – the Reserve Bank of India has notified all the banks to stop charging penalty on foreclosure and pre-payment of home loan with floating interest rate with immediate effect. So far banks used to charge… Continue Reading
The Reserve Bank of India has cut the repo rate by a sharp 50 basis point. Repo rate is the rate at which the RBI lends money to banks. It means the borrowing from RBI becomes cheaper for commercial banks. The reduction in repo rate has come for the first time in last 3 years.… Continue Reading
A few weeks ago, NHB had banned prepayment penalty on floating rate home loans by HFCs such as HDFC and LIC Housing Finance. Just like we had predicted earlier, banks are now following suit in abolishing prepayment penalty on home loans. SBI and ICICI Bank have now joined the HFCs and Axis Bank in ending… Continue Reading
This Diwali, Reserve Bank of India increased the Repo rate (rate at which RBI lends credit to banks) to 8.5% and Reverse Repo rate (rate at which RBI borrows from banks) to 7.5%, both increased by 25 basis points; and thus in last one and a half year it has increased cumulatively 525 basis points.… Continue Reading
Recently, Union Cabinet has decided to increase the cap for availing 1% subsidy on home loans. For poor and middle class people to whom owning a house is a big dream, it will be a relief as it will partially compensate for the ever increasing interest rates. The subsidy would now be available for home… Continue Reading