Fundublog Loans

Owing a house is one of the biggest dreams of many a family. Buying a house is a lifetime decision involving a large quantum of funds and usually forms almost 80 to 90 percent of the family’s asset base. To raise a large quantum of finance the internal funds are complemented by bank borrowings. The journey from applying for a loan to getting one is the most important link in achieving the goal of a dream house. The exercise begins with the property selection, moves on to bank selection and passing through many more procedures reaches the destination of getting the loan. Read more
Courtesy: economictimes.indiatimes.com

Home loans run into lakhs of rupees. It is a longterm and substantial financial commitment. A borrower who has borrowed a hefty amount can sometimes crack under pressure. Defaulting is a nightmare which most home owners dread. Managing home loan repayments in the current scenario of soaring inflation rate and high interest rates can be quite a challenge for many borrowers. But it is manageable with some planning.

The increase in input costs including that of steel, cement and labour has pushed the cost of homes further up. Also, investments in realty projects by foreign players has added its bit to price escalation. To rein in inflation the Reserve Bank of India (RBI) is bound to tighten monetary policy measures. Interest rates are showing indications of going upwards. Read more
Courtesy: economictimes.indiatimes.com

Home loan borrowers need to brave a 50-75 basis point hike in interest rates with most banks and leading housing finance player HDFC having increased their interest rates.

The rate hike will not only increase the cost of new loans but will also make all existing floating rate loans costlier by half to three fourth cent. Read more
Courtesy: economictimes.indiatimes.com

Over the last six months there has been a sudden spurt in inflation. The disturbing fact is that there are no signs of it coming down in the near future. So far, the Reserve Bank of India (RBI) has increased the repo rate and the cash reserve ratio (CRR) in its attempt to fight inflation. By increasing the repo rate and the CRR, the RBI indirectly increases the cost of funds for banks.

These measures seem ineffective as inflation has touched a 7-year high on the back of high oil prices. Hence, there is a possibility that the RBI may increase interest rates in the near future , which is considered to be a more effective measure to fight inflation. Read more
Courtesy: economictimes.indiatimes.com

State Bank of India, the country’s largest lender, has increased its floating home loan rate by 50 basis points across all tenors with effect from 27 June, the day on which the bank increased its PLR by 0.5 per cent.

For home loans of up to Rs30 lakh and 20 and 25 years tenure, the interest rate has been increased by 0.5 per cent to 11 per cent against 10.5 per cent, SBI said in a release. Read more
Courtesy: www.domain-b.com

To help meet the increasing need for finance in construction and purchase of residential units, Eastern Bank Limited (EBL) has officially launched a loan facility titled ‘EBL Home Loan’ under it’s consumer banking. Formally launching the “EBL Home Loan” in a press conference held yesterday at a local hotel in Dhaka. Read more
Courtesy: nation.ittefaq.com

National Development Bank (NDB) would start financing construction of houses mid July.
Speaking to BOPA after briefing the ongoing Kweneng full council meeting, the Relationship Manager for NDB, Mr Mmoloki Maakwe said the bank would offer loans to people who have plots and want to build houses.
Mr Maakwe said customers would have an option to be financed for labour, building material or for both.
The loan would be open to all people who qualify. Read more
Courtesy: www.mcst.gov.bw

The Bank of England has reported that the number of mortgages approved in May 2008 for house purchase dropped to 42,000, a 64% decrease when compared with May 2007.

The bank said that the number of home loans approved in May is 28% down from 58,000 in April 2008. Read more
Courtesy: www.banking-business-review.com

HOME loan repayments and rent are hurting struggling borrowers much more than high petrol prices, data from Australia’s largest privately owned debt collection agency shows.

Unleaded fuel prices were approaching $1.70 in Adelaide, Melbourne, Sydney and Canberra yesterday even before crude oil prices reached a record $US145 a barrel.

Yet less than two per cent of consumers nominated high petrol prices as their primary reason for failing to pay an overdue bill, an email survey of Prushka’s 80 debt collectors taken in June found.
Read more
Courtesy: www.theaustralian.news.com.au

St George Bank has lifted its standard variable home loan rate by 0.2 percentage points to 9.67%, independently of the central bank.

Australia’s fifth largest bank attributed the rise to the continuing high cost of funds it sources for itself.

The rate rise equates to an increase of $10 a week for repayments on an average loan of $250,000 over 30 years. Read more
Courtesy: business.theage.com.au