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Differential rates for home loans, depending upon the money you bring to the table would crop up in a span of two years. As per the new guidelines, the resolution would come into effect from March 2009, if you can bring in Rs. 6 lakh for a property worth Rs. 24 lakhs and seek only Rs. 18 lakh as loan, with a lower interest rate as contrasting to seeking Rs. 20 lakh and bringing only Rs. 4 lakh of money.
While the overseas banks have been solicited to conform to the norms by March 2008, Indian banks have an additional year to fall in line. The guidelines position the various risk- weights for diverse forms of loans offered by the banks. In the section on housing loans, the norms state that the risk weight for the loans below Rs. 20 lakh will be 50% and for higher loans, about 75%. However, if the value of the loan is more than 75% of the value of the asset (house), the risk weight would be 100 per cent, irrespective of whether the loan is below or above Rs. 20 lakh.
Over the last few years, banks have been presenting a minimum of 85 per cent of the value of the property as a loan. For official and fresh properties, numerous banks also go up to 90 per cent and offer other kinds of top up loans to cover almost 95 per cent of the value of the property. Meanwhile, housing loans below Rs. 20 lakh have been declared as a priority sector lending and that this would allow the banks to pass on some benefits to new loaners as well as on hand borrowers.
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Posted On : 02 May 07
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