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
Watch Out Current Trends in Loan Market & Avail Loans!
Watch Out Current Trends in Loan Market & Avail Loans!
Article by Sadhana Dhanyal
Have you been contemplating to avail funds for your various needs but are afraid of being turned down by borrowers for various reasons? Is your poor credit score a cause of concern for you? If your answer is yes to any of these questions, you can reach out to financial experts. They can help you avail funds in a short period of time. The financial experts have all the required information. They can guide a prospective borrower avail suitable types of funds. There are innumerable lenders offering finance to bad credit scorers. However, before you prod further, you must adhere with the present financial situation in the loan market. It is believed that FSA (Financial Services Authority) has raised concerns over recklessness of some lenders. FSA is UK’s financial regulator. They are upset with some lenders who have been on a lending spree causing borrowers fall in arrears. Around 30 and 60 per cent of borrowers are believed to be in arrears all due to some lenders offering loans. In order to tackle this kind of situation, FSA is contemplating to bring new rules and regulations to further restrict mortgage lending. It is also being done to promote more responsible practices by lenders. Lenders are unhappy with such developments. The scenario is reflective of the fact that lenders are just on to make merry with going on a lending spree irrespective of the troubles that borrowers might face at a later stage! The lenders are unhappy with such developments as they believe that borrowers opt for loans only when they face the need. A financial expert has voiced concerns by saying that genuine self employed people should have a way of proving them income anyway, and that the decision to stop self cert mortgages was based on ensuring people didn’t get lumbered with loans that they could not repay.It may not suit the interests of the lenders when they are criticised on lending loans without being concerned over the fact whether lenders can repay the loan. The criticism towards lenders comes in the wake of absence of any concern for the borrowers. If you are a borrower on the lookout for finance, make sure that you borrow money that you can pay up later. Do not create a vicious circle for yourself that you cannot get out of. Adhering to this advice will keep you in good stead.
Sadhana Dhanyal, content developer for finance domains. For more information: IVA InsolvencyGet more information on: IVA Insolvency Help
