Category Archives: Financial Services

Home loans see near-flat growth in April-January

The rush for retail credit hasn’t brought much cheer to banks in terms of home loan growth rate. Year till date (April 2012-January 2013) data from the Reserve Bank of India show growth in home loans is close to flat.During the period, home loans grew by 10.4 per cent, compared to 10.5 per cent in the similar period last year.Banks, which are expanding their home loan book, are aggressively taking over loans of other banks by offering lower interest rates and securitisation. Even for the...

Understanding Home Loan Prepayment

When one increases the tenure of their home loan, the amount of money that goes into payment of interest also increases. This interest payment you make to the bank is your burden that one shall strive to reduce it as much as possible. When one is prepaying the home loan it means he is paying extra principal component of home loan. Prepayment does not reduce your EMI but it will allow you to close your home loan much earlier. By paying early you are actually...

Home loan tax exemption limit hiked from 1.5 lakhs to 2.5 lakhs

Finance Minister P Chidambaram on Thursday (Feb 28) raised tax deduction limit by Rs 1 lakh for the first time home buyers to promote the housing sector. “A person taking a loan for his first home from a bank or a housing finance corporation up to Rs 25 lakh during the period April 1, 2013 to March 31, 2014 will be entitled to an additional deduction of interest of up to Rs 1 lakh,” he announced while presenting Budget 2013-14 in Parliament.

NRIs  can  take  home  loans  but  conditions  apply

Anyone who comes under the definition of the Foreign Exchange Management Act, 1999 (FEMA) can avail a home loan in India. FEMA defines an NRI as someone who resides outside India for “employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period”. It also says that an individual will also be considered NRI if his stay in India is less than 182 days during the preceding financial year.