Home loan market stay for improved competition
Home loan market stay for improved competition
Article by hardeep
State-owned Punjab National Bank has announced a festival bonanza offering home loan at 8.5 per cent, a teaser rate to attract new customer.
The concessional rate of 8.5 per cent has been fixed for three years for housing loans up to Rs. 50 lakh. As per the existing rate-card, loans up to Rs. 30 lakh attract a lowest rate of 9.25 per cent with a repayment period of 5 years while loans above Rs. 30 lakh is available at 10 per cent for similar maturity.
“Under the offer, housing loans up to Rs. 50 lakh will be available at discounted rate of interest of 8.50 per cent under fixed interest rate option (fixed for three years) across all repayment tenors,” PNB said in a statement.
At the same time, new car loan borrower under fixed option will get a rebate of 0.5 per cent. The festival offer will be valid from August 20 to December 31, 2010. PNB is probably the first bank to announce loans at concessional rate to cash in on festive fervor.
Interestingly rebate comes weeks after after PNB raised its Benchmark Prime Lending Rate (BPLR) for its existing customers.
BPLR of the bank was raised 75 basis points to 11.75 per cent with effect from August 1. Home loan borrower will get full waiver of upfront processing fee and documentation charges, it said.
Besides, margin stands reduced to 15 per cent from 25 per cent for housing loans upto Rs. 20 lakh, it said. Country’s largest lender State Bank of India is offering concessional home loan interest rates at 8 per cent for the first year.
The bank decided to extend its popular home loan and car loan schemes and leave their terms unchanged, following the transition to base rate system from July 1. The rates are valid till September 30.
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Question by : can I cash out on a home loan after it has been placed on the market?
My house it on the market for sell, however I have decided to refinance and would like to know how long does my house have to be off the market for I can cash out?
Best answer:
Answer by Spock (rhp)
start your refi search after the sale contract ends.
Know better? Leave your own answer in the comments!
Categories: Loan Market Tags: Competition, home, improved, Loan, market, Stay
Home loans at lower-than-market interest rates
Home loans at lower-than-market interest rates
Leading group-buying real estate portal Groffr.com has tied up with private sector banks to offer bulk consumers home loans that are 0.25-0.75% cheaper than prevailing interest rates.
“We have tied up with ICICI Bank and Indiabulls Home Loans, and a couple of Building Societies Associations (BSA) who generate bulk volume for banks. Negotiations are also on for IDBI Bank and Axis Bank. We are confident these two banks will give us mandate to generate bulk volume at rates that are a little cheaper than prevailing interest rates,” said Sandeep Reddy, Co-founder of Groffr.com.
The process is simple. Customers wanting to buy houses in metros or tier-II, III and IV cities have to log on to this website and submit their interest.
Within 7-10 days, the company generates a large number of customers, which it uses to negotiate better interest rates and other terms with the banks.
Interestingly, within a fortnight of the launch, the company has registered over 500 interested customers.
Groffr.com also plans to a sign similar deal with India’s largest public sector bank the State Bank of India (SBI).
“We approached SBI earlier. But their response was unfavourable due to teaser home loan interest rates. Since teaser rates manage to attract large customers directly, the bank did not want any intermediaries like us. But, the teaser rate arena is over now.
Hence, we will approach SBI once again for considering our proposal,” said Reddy.
The company is currently in talks with a few venture capital players to raise funds for expanding the firm’s operations. According to Vikhyat Srivastava, another Co-founder of the portal, a number of venture capital firms have evinced interest and, at present, a few investors of “Mumbai Angels” are in advanced talks with the company, he added.
The company plans to raise Rs 2-3 crore from venture capital investors.
The concept
All a buyer has to do is find a deal on the website he is interested in and get himself registered as an interested party in that deal. The property bears two prices: the market price and the discounted price Groffr.com offers, called the ‘Groffr Price’. The required number of group members and the last date for registering are also mentioned. Also, the buyers can suggest a deal in the ‘Start Your Group’ section, in which after starting a deal of their own choice, they can combine like-minded people to form a group. On forming a group, Groffr.com’s team steps in and negotiates the best deal with the developers on buyers’ behalf.
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Question by tpmike2004: Whats happening in todays Mortage & Loan market?
Whats goin on? Why cant buyers get a loan?
Best answer:
Answer by fathead
The credit squeeze caused by the sub-prime blow-up is causing banks to avoiding transacting business with one another. Everyone is afraid of getting stuck with bad paper. Though the fed injected $ 38bn into the market today to free up some cash, the problem is bigger than this type of fix and credit will probably difficult to obtain for the next few weeks to months. Even when people can get credit they will find that it is very expensive; rates are up as a result of the squeeze and fear in the financials. If they need a Jumbo they may pay upwards of 8%!
Give your answer to this question below!
Categories: Loan Market Tags: home, interest, Loans, lowerthanmarket, Rates
Changes in the Home Loan Market since 2006 – taux hypothecaire
Changes in the Home Loan Market since 2006 – taux hypothecaire
Article by Mark Steed
It is clear to anyone who has a home loan or who even just reads about the financial news, that drastic changes have occurred in the mortgage market- taux hypothecaire. A number of important factors have developed in recent years that have dramatically changed how this market operates: reduced credit availability, depressed home prices and increasing mortgage rates- taux hypothecaire. It was just about impossible that the increase in real estate prices that was an earmark of the early 21st century could continue. However, so many homeowners (taux hypothecaire) used this additional equity in their homes to increase their debt and as prices fell, there was not enough collateral to cover the loan. The loans that were given to less than perfect applicants were bound to be the first to suffer when values came down and interest rates went up. Many people with bad credit ratings could hardly afford their mortgages (taux hypothecaire) to begin with, and then when the values of their homes started to drop as the rate on their mortgages adjusted upwards, the only option open would be to try to refinance. Refinancing became less available as more and more of these loans(taux hypothecaire) became due. This created a circle of failure. – taux hypothecaire Unable to refinance, and unable to make the payments, homeowners went into foreclosure, increasing the amount of homes on the market and further reducing(taux hypothecaire) the prices. And banks(taux hypothecaire) didn’t care that these less than prime loans that were causing 60% of the defaults only made up 20% of the market. As a matter of fact, two states alone, Florida and California, accounted(taux hypothecaire) for 36% of the foreclosures nationwide. Nevertheless, banks have pulled in the reins on lending across the country, and potential borrowers are not able to get easy terms or borrow with poor credit ratings any longer – taux hypothecaire. How has this changed things? – taux hypothecaire Some say it is a return to the way things should be. Some people may not be happy that the time of easy credit and low down payments (taux hypothecaire) are gone, however. In other words, banks(taux hypothecaire) will now require a reasonable down payment (although 10% down payment loans can still be found), a reasonable credit score, and a proper assessment of the property value. For those buyers who can meet the more demanding conditions, the real estate market can be a very attractive one, because (taux hypothecaire) interest rates are holding at historically low prices and there are some really good values in the market.
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Question by nuaspectra: I would like to know how to market my business loan facility to get more clients?
I am a business loan executive for a bank and would like to offer the such facility to business client. How do I get into those interested client and meet them for appointment beside cold call & cold visit? Thanks in advance.
Best answer:
Answer by becky
I’m a Real Estate Agent and what I do is flyers then go to my local church and post flyers to all of the parks park in there and it really works. Also I do flyers outside supermarkets or stores. You will get calls believe me. Try it out!!! Good Luck!!
Add your own answer in the comments!
Categories: Loan Market Tags: 2006, Changes, home, hypothecaire, Loan, market, since, taux
