SBI and ICICI Bank end pre-payment penalty on home loans

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

Cap for 1% interest subsidy raised – Should we cheer?

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

NHB bans prepayment penalty on home loans by HFCs

In a major relief to debt burdened and EMI paying borrowers, regulator National Housing Bank (NHB) directed housing finance companies (HFCs) not to levy penalty on prepayment of floating loans irrespective of the source of funds. However, borrowers with fixed rate loans can avoid prepayment penalties only if they pay from their own sources. According… Continue Reading

News Roundup – Oct 7, 2011

In this news roundup, we bring you our analysis of the latest and most interesting loans, interest rates and EMI related news from various resources. Banks not to raise lending rates for now While the mortgage rates in U.S. are at a record low, the persistent rate hike by RBI has increased borrower’s anxiety in… Continue Reading

Rate race in home loan market heats up

While an existing borrower is reeling under the burden of ever increasing EMI, banks have embarked on all out rate war to attract new customers. At first glance, banks appear to be wooing new customers with various concessions to make up for high interest rates and higher property prices. While doing away with processing fees… Continue Reading