Corporation Bank has decided to slash interest rates on home

Corporation Bank has decided to slash interest rates on home, car and educational loans with effect from September 1 for a three-month period.

The state-run bank has also decided to waive the processing fee for these loans.

The bank's Chairman and Managing Director Ajai Kumar said the interest rates for Corp Home Housing loan for up to Rs 50 lakh would be 10.50%.

The rates would be 10.75% for loans up to Rs 1 crore and 11% for loans exceeding Rs 1 crore. The bank hitherto charged 11.25% interest on home loans, he told reporters here yesterday.

In case of vehicle loans, customers would be charged at 11.25% for a five-year period.

The interest rate for auto loans with a tenure of 7 years would be 11.75% as against 12% charged so far, he said.

Kumar said the bank has launched Corp Doctor Plus scheme for medical professionals, under which any registered medical can avail loans at 12.10% interest rate against the existing rate of 12.60%.

Ashwani Kumar and Amar Lal, both Executive Directors of the bank and K Ramamurthy, General Manger were also present at the event.

SBI Cuts Car, Home Loan Rates 50bps

State Bank of India on Wednesday cut interest rates on loans for homes and cars, a move that could benefit millions of consumers. By cutting rates, the country’s largest lender is trying to capture the growing retail segment in the face of falling demand for loans from corporates. 
The move will force rival private sector and state-run peers to lower interest rates, which could put pressure on their profitability. SBI did not say whether lower rates will be applicable to existing customers. 
“We have targeted the retail segment because the instrument of interest rate should be used for increasing credit flow,” SBI Chairman Pratip Chaudhuri said in an interview to ET NOW. “Large term loan proposals are very few and working capital for good corporates is already happening below base rates...So, for a bank like us, the option is to accelerate the retail (lending).” The rate on car loans now stands at 10.75%, down from 11.25%, which will translate into a monthly repayment of . 1,699 on a seven-year loan, compared with . 1,725 earlier. The rate on home loans up to . 30 lakh will fall to 10.25% from 10.5%. Forloans between . 30 lakh and . 75 lakh, the rate will be 10.4%, down from 10.75%. For home loans over . 75 lakh, the rate will be 10.4%, compared with 11% earlier. The new rates will be effective from August 7.

Interest Rate of LICHFL in August 2012

Interest Rate of LICHFL in August 2012

A New Limited Edition Floating Rate Product called “YUVA” has been introduced w.e.f 01.08.2012 by LICHFL. This product is offered for a Limited Period of 3 Months i.e., for loans sanctioned till 31.10.2012 and for 1st Disbursements to be availed on or before 30.11.2012.:-

Amount of Loan	Interest Rate
Upto and including Rs 40 lacs	10.75%
More than Rs 40 lacs and less than Rs 75 lacs	11.00%
Rs 75 lacs & above upto Rs 1.50 cr	11.25%

This product is Floating Rate of Interest for the first 3 years from the date of first disbursement & would be linked to PLR prevalent on the date of first disbursement. However after 3 years Interest rate will be PLR-250BPS & 75 lacs to 1.50 Cr will be PLR-225BPS

Other products of LICHFL are Grand 3 & Advantage 5

Amount of Loan	Grand 3	New Advantage 5
Upto 40 Lacs	10.70%	11.15%
40 Lacs to 1 crore`	11.25%	11.40%
1 crore to 1.50 crore	11.75%	11.65%

Grand 3 is fixed for 3 years & floating thereafter. New Advantage 5 is fixed for 5 Years & floating thereafter.

Home loan top up is cheaper than personal Loan

These days if you have Home Loan on your house you can get top up on that loan for your personal use. The top up Loan on your home Loan is much cheaper as compared to the Personal loan. It’s come with a interest rate of 13-14% p.a. as compared to the Personal loan whose Rate of Interest is ranging from 15-20% as well as higher Processing Fees.

So if you need personal loan for your personal use like sisters or daughters marriages etc. you can go for home Loan Top up on the existing Loan or loan against property as the same is much cheaper than the personal loan & very easy to process.

If you already have home loan you just need to approach your existing financer for top up on the same. The financer will provide you the loan faster as the property is already mortgaged to them if the financier have margin for the same. Since the end use of the loan is different & not for home purchase or construction, obviously the rate of interest for the top up loan will be higher. However the interest rate on your home loan portion will be same as of earlier & will not be effected by your top up loan interest rate. Financer will just treat those as two separate loan account though the property is same.

Same way if a person does not have any loan on his home can approach financers for his/her business loan/ personal loan needs by offering house as mortgage for cheaper rate of interest.

[For any query on the said matter write your query to Housingfinance.advisor@gmail.com]

Home Loan Calculator

Home Loan Calculator

Prepayment charge on Home Loan

Prepayment Charge

RBI as well as NHB (National Housing Bank) has abolished prepayment charge/penalty on prepayment of home loan from this April 2012 onwards. Some Banks were charging 1-2% penalty on prepayment of their home loans.

Now from April 2012 onwards Bankers are bound to waive the prepayment penalty on pre payment of Home Loans. The borrowers on floating rate of interest will need not to pay prepayment charge whether its paid from own source or it’s a takeover by any other banks. However borrowers on fixed rate of interest would get this benefit only on payment from its own sources.

The borrowers on fix-o-floaty scheme (where interest rate is fixed for certain period & floating thereafter) will be considered as fixed interest rate borrower without considering the fact that whether the borrower is at the time of prepayment is under fixed or floating rate of interest. Therefore they will get the benefit of prepayment charge abolishment only if they pay the amount from their own sources.

The borrowers with good track record & paying a high floating rate of interest, mainly the borrowers who borrowed long time back, can consider for takeover of their loan from any other bank to minimize the interest burden. By the same time borrowers with idle money in hand can consider for prepayment to utilize the idle money by saving interest on their home loan.

For any query on the above article mail us at housingfinance.advisor@gmail.com

Average Property Price in Mumbai

Average Property Price in Mumbai

Average Residential Apartments Price in Delhi NCR

Average Residential Apartments Price in Delhi NCR

Special Rate of Interest from LICHFL for LIC Policy Holders

Special Rate of Interest from LICHFL for LIC Policy Holders

LICHFL is offering 25 basis point off on their Floating Interest Rate for the customer having LIC policy of Rs.15 Lakh or more. Therefore LICHFL will charge 0.25% less Interest rate from the customer who is having a policy from LIC of Rs.25 Lakh or more.

Average Property Rates in Delhi NCR

Source: Times of India, 30th June, 2012

Some Queries of Readers on CIBIL

Some Queries of Readers on CIBIL

Is CIBIL a list of defaulters?

No. CIBIL only maintains account information of various loan customers and credit card customers irrespective of the fact whether they are defaulters or not. The information comprises their name, address, monthly repayment track record, outstanding amounts, etc.

  

Does a bank report the names of all customers' to CIBIL?

Only the names of the borrowers i.e. those customers who have availed of a loan or a credit card from a CIBIL member are reported to CIBIL.  Details of liability accounts such as savings, fixed deposits and recurring deposits are not sent to CIBIL.

  

On what segments does CIBIL provide a credit report?

CIBIL is a repository of credit information and in the consumer segment it provides information on the various loans availed of and cards held by an individual from a member bank. Its commercial report covers the credit availed of by non-individuals.

What is the content of a CIBIL report?

CIBIL only reports loan and credit-card information such as repayment track, loan type, amount outstanding, loan amount disbursed, various dates, etc. The report also contains a customer's personal information like name, address, date of birth, phone number(s), passport number, voter's ID number, PAN, etc. In a commercial credit report the inputs are similar but include some additional details pertaining to the commercial entity like legal constitution, registration number, etc. The credit report does not provide any opinion or comment on whether a loan should be extended to a customer. It reports the facts that its member banks and financial institutions have reported.

  

Can a customer's name be removed from CIBIL's database?
Member banks contribute to CIBIL on a monthly basis data of all their customers who maintain a loan/credit-card account with them. Hence a customer's name cannot be removed from CIBIL's database.
If a loan is denied to a customer by one bank on the grounds of the CIBIL report, will it be denied by other banks too?
Approval or rejection of a credit application depends on the bank's policies. Rejection by one bank on the grounds of the CIBIL report might not imply rejection by another bank. CIBIL do not keep any track of the loan rejections by any banker on their credit report.

  

If a customer's family member has defaulted, will it affect the customer's status in CIBIL's records?

The CIBIL report has information of loan/credit details of the borrower only. Therefore, for a retail customer, it would not matter if someone in his/her family has defaulted. If the customer's repayment track record is okay, his/her credit score will not be affected by that of his/her family members. However if he/she has stands guarantor for the said loan then it will appear in his/ser CIBIL report. Whether loan track of any loan appears in the CIBIL report if the customer stands guarantor for the said loan Yes, The track of the loan will appear in the Guarantor’s Credit report & a bad track record of that loan may arrive into a rejection of loan by banker. If they found that the said loan may becomes future liability of the guarantor.

 What is Credit Score :

 The credit history & repayment behavior of a customer is translated into a number developed by CIBIL, called 'credit score' ranging from 300-900. It is an indicator of the credit-worthiness of a customer. It predicts the likelihood of a consumer defaulting on a payment. A borrower who is more financially disciplined will have a higher credit score. Higher credit scores are better.

  

How Does a Score Is Related to Loan Appraisal :

A strong credit history & a higher score will get you better credit terms - better loan amounts & attractive rates of interest. If you have defaulted on any payment, then your credit history will be impacted and it may limit your ability to get a new credit product, or sustain the current product

What if a Bank has rejected my loan application on account of unfavorable CIBIL report / score:

·         If the bank is rejecting a loan on the grounds of the CIBIL report being unfavorable, then you can ask your bank for a copy of your CIBIL report or purchase the same from CIBIL & if any error is there apply to CIBIL for correction of the same otherwise try to improve your credit history.

How CIBIL get & share Credit information of consumers

How CIBIL get & share Credit information of consumers

CIBIL collects credit information of the customers of each member financial institutes & get it compiled by its own. CIBIL share the credit report of consumers with in its member group only. The Credit Information Companies (Regulation) Act, 2005, and various Rules and Regulations issued by Reserve Bank of India has empowered CIBIL or (Credit Information Bureau (India) Ltd to collect the data from various types of credit grantors (i.e. lenders). and then share the same within the group.   The legislation has enabled banks to submit data to CIBIL without obtaining borrower consent. This has enabled CIBIL to tracks repayment history of bank customers loans, credit cards and further banking finances. Data sharing is based on the Principle of Reciprocity, which means that only Members who have submitted all their credit data, may access Credit Information Reports from CIBIL. The relationship between CIBIL and its Members is that of close interdependence.

For credit grantors to gain a complete picture of the payment history of a credit applicant, they must be able to gain access to the applicant's complete credit record that may be spread over different institutions. CIBIL collects company and consumer credit-related data and collates such data to create and distribute credit reports to Members.

Thus, we can say that CIBIL collects commercial and consumer credit-related data and collates such data to create and distribute credit reports to Members.   (A Credit Information Report (CIR) is a factual record of a borrower's credit payment history compiled from information received from different credit grantors

Member banks contribute to CIBIL on a monthly basis data of all their customers who maintain a loan/credit-card account with them. You may not get your payment updated with CIBIL immediately after your payment since its update their data on the basis of monthly report of members.

Can a customer’s name be deleted from CIBIL?

No, since bankers share credit data monthly with the CIBIL so, a customer's name cannot be removed from CIBIL's database.

How to Own your CIBIL Report

How to Own your CIBIL Report

There is a procedure for purchase of one's own CIBIL report so that before you apply for loan, you are aware of the same & you may get the errors rectified, if there any, before you’re your lender seen the wrong credit report of yours. .  You can visit the following link to buy the report from CIBIL https://www.cibil.com/online/credit-score-check.do

Since April 2011, Credit Information Bureau (India) Ltd (CIBIL), India's first credit information company, has allowed consumers to purchase their "CIBIL TransUnion Score" directly from CIBIL & is now available to consumers for Rs 470.

The very purpose of sharing the CIBIL report with consumers is to help them to assess their own credit history better and enable them to 'see themselves as lenders do. Knowing their CIBIL TransUnion Score will enable consumers to better manage their credit history, avail speedier access to credit and derive benefits associated with good credit history. The score is provided along with the CIBIL Credit Information Report (CIR). The TransUnion Score is a three-digit numeric summary (ranging from 300 to 900) of a consumer's credit history, compiled from information received from credit institutions who are members of CIBIL.

  

An individual's score provides a credit institution with an indication of the "probability of default" based on his/her credit history. It helps in estimating the likelihood of repayment of their loan based on the individual's past pattern of credit usage and loan repayment behavior.    The closer the score is to 900, the more confidence the credit institution will have in the individual's ability to repay the loan and hence, the better the chances of his/her application getting approved.

Consumers can pay for availing their TransUnion Score by following an online payment procedure or through a demand draft. The higher the score, the more favorably it is viewed by credit institutions. However, every institution has its own benchmark of what constitutes a good credit score & sometimes they generate CIBIL without score which gives just the track record & they used to analyse the same at their own. CIBIL does not recommend any cut-off score loan application eligibility.

CIBIL benefits both credit grantors and consumers by collecting, analysing and delivering information on credit histories of millions of borrowers. It provides its members with information on both consumer and commercial borrowers, thus enabling them make sound credit decisions across both individuals and businesses.

What Should One Do, if there is a Mistake in the CIBIL Report

What Should One Do, if there is a Mistake in the CIBIL Report

Typically, one checks credit report when one's loan gets rejected and the loan provider tells that it is because of some information on credit report.  Mistakes on a credit report can be easily corrected with the CIBIL’s help. All you need to do is:

a) Purchase your CIBIL credit report

b) Identify the erroneous information

c) Provide name, address, date of birth, a Control Number and the nature of the error on the credit bureau’s website.

The Control Number is a unique 9-digit number found on the top right hand side of your CIBIL Credit Information Report and is generated every time a credit report is generated. It is very important to provide this number to the bureau, as it helps identify the CIBIL credit report on which you would like to ‘dispute’ information.

Normally following types of errors are found in ones CIBIL Report & which can be easily corrected from by taking up the matter with CIBIL

Personal information’s such as Name, Date of Birth Gender, Income Tax ID, Passport Number, Voter's ID, Telephone Numbers, Address, State, PIN

Account Details (Loan/Credit Card) Account/ Loan Type, Account Status, Ownership Type, Date of Last Payment, Date Opened, Date Closed, Sanctioned Amount/ High Credit, Current Balance, Amount Overdue, DPD/ Asset Classification

Ownership some accounts showing in your CIBIL report may not pertain to you & you can raise an objection on ownership of the same.

Duplicate Accounts a loan/credit card may be showing twice/thrice in your CIBIL

If you find any of the above error in your CIBIL report then follow the link & get it corrected from CIBIL within a period of 30 days.

https://www.cibil.com/online/ManageDisputeDetailsAction.do?action=showDisputePage

What is CIBIL?

What is CIBIL?

CIBIL is nothing but the mirror of your earlier loan credit card repayment track. It stands for Credit Information Bureau (India) Ltd. CIBIL gives A Credit Information Report (CIR) which is a factual record of a borrower's credit payment history compiled from information received from different credit grantors. Its purpose is to help credit grantors make informed lending decisions. An individual's credit report provides a credit institution with an indication of the "probability of default" based on his/her credit history. It helps in estimating the likelihood of repayment of loan based on the individual's past pattern of credit usage and loan repayment behaviors. The more clear & good CIBIL report attracts borrower confidence about his future repayments & the individual's ability to repay the loan and hence, the better the chances of his/her application getting approved quicker.

What it contains in its report: CIBIL only reports loan and credit-card information such as repayment track, loan type, amount outstanding, loan amount disbursed, various dates, writer off/settled etc. The report also contains a customer's personal information like name, address, date of birth, phone number(s), passport number, voter's ID number, PAN, etc. The credit report does not provide any opinion or comment on whether a loan should be extended to a customer. It reports the facts that its member banks and financial institutions have reported.

CIBIL is the repository of information which is pooled in from all Banks and lending Institutions operating in India.   CIBIL  have a database size of over 17 crore  consumer records and over 65 lacs company records contributed by our over 500 Members.    

The Credit Information Companies (Regulation) Act, 2005, and various Rules and Regulations issued by Reserve Bank of India has empowered CIBIL or (Credit Information Bureau (India) Ltd to collect the data from various types of credit grantors (i.e. lenders). and then share the same within the group.   The legislation has enabled banks to submit data to CIBIL without obtaining borrower consent This has enabled CIBIL to tracks repayment history of bank customers loans,  credit cards and further banking  finances. 

So from next time before defaulting in any loan or credit card repayment be aware that CIBIL keeps an eye on your repayment of loan & your default may attract non availability of loan in future from other lending institutions as well.

Interest Rate Chart of LICHFL

LIC Housing Finance Ltd is the 4th largest Player in Housing Loan Segment. There offered interest rates & schemes are as follows: 

Interest Rate Chart of LICHFL
Slab	New Advantage 5 *	Magic 3 **	Floating
Upto 40 Lacs	11.15%	10.70%	10.40%
40 Lacs to 1 crore`	11.40%	11.25%	10.40%
1 crore to 1.50 crore	11.65%	11.75%	10.40%
* Fixed For 5 years & Floating Thereafter
** Fixed for 3 years & floating there after
Floating on next quarterly review
upto 75 lacs	LHPLR-250BPS
75lacs to 1.50 crore	LHPLR-225BPS

ICICI Bank Housing Loan Interest Rates

ICICI Bank Housing Loan Interest Rates

ICICI Bank is the 3rd largest Player in Housing Loan Segment. There offered interest rates & schemes are as follows:

One year fixed rate 

slab	Fixed rate for the first 12 months	Floating rate pricing from second year onwards
Upto 25 Lakhs	10.50 %	I-Base + 0.50 % (10.50%)
25 Lakhs to 75 lakhs	11.00 %	I-Base + 1.00 % (11.00%)
Above 75 Lakhs	11.50 %	I-Base + 1.50% (11.50%)

Two year fixed rate 

Ticket size slab	Fixed rate for the first 24 months	Floating rate pricing from Third year onwards
Upto 25 Lakhs	10.75%	I-Base + 0.50 %(10.50%)
25 Lakhs to 75 lakhs	11.25%	I-Base + 1.00%(11.00%)
Above 75 Lakhs	11.75%	I-Base + 1.50%(11.50%)

Three year fixed rate 

Category	Fixed rate for the first 36 months	Floating rate pricing from forth year onwards
Upto 25 Lakhs	10.75%	I-Base + 0.50 %(10.50%)
25 Lakhs to 75 lakhs	11.25%	I-Base + 1.00%(11.00%)
Above 75 Lakhs	11.75%	I-Base + 1.50%(11.50%)

ICICI Bank floating rate: 

Ticket Size slab	Rate	Effective rate of interest
Upto 25 Lakhs	I-Base + 0.50%	10.50 %
25 Lakhs to 75 lakhs	I-Base + 1.00%	11.00 %
Above 75 Lakhs	I-Base + 1.50%	11.50 %

ICICI Banks current I-Base Rate is 10%. Floating rate calculated above is as per the current I-Base Rate & will change as per the change of I-Base rate.