Category Archives: In Focus

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...

Realtors skeptical over housing policy for poor

The state government's plan to create one lakh affordable houses in 10 years has made developers skeptical. The 'scheme for affordable urban housing in Odisha-2012' annunciated recently stipulates developers to reserve 15% built-up space for lower income group (LIG) and economically weaker sections (EWS) in residential projects of size exceeding 2,000 sq m. The builders opined that it was not feasible and suggested reduction in their contribution to low cost houses."Fifteen per cent built-up area is on the higher side and the government should lower it...

Housing prices rise by up to 9.6% in 18 major cities, Bhubaneswar up by 2.4%

Housing prices have risen in 18 major cities, including Delhi and Mumbai, by up to 9.6 per cent during the October-December period 2012 compared with the previous quarter, according to National Housing Bank (NHB).Mumbai and Delhi witnessed the maximum increase in housing prices at 9.6 per cent each. Of the 20 cities tracked by NHB ‘RESIDEX’, prices have dropped in only two cities — Faridabad and Indore. “In the majority of cities prices are witnessing an upward trend,” NHB said in a statement. “The movement...

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.