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
Please read our updated article explaining tax benefits on home loan. The hardest thing to understand in the world is the income tax – Albert Einstein Most people would tend to agree with Einstein, as tax related calculations & rules are complex, intimidating and difficult to understand. At the same time, it is imperative 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
Do you know the story of Bhasmasura? In Hindu mythology Bhasmasura was a demon who got a boon from Lord Shiva that anyone he touches with his right hand should turn into ashes. Once he got this boon, Bhasmasura wanted to try it on Lord Shiva himself. On seeing the plight of Shiva, Lord Vishnu… 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
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
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
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
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
While the last few years have seen real estate prices only going up north, there’s no assurance they won’t turn around and go south. While property value decrease is good news to prospective buyers, it can have a “unsettling effect” to borrowers with a home loan…especially if the house value goes down below the outstanding… Continue Reading