The major news from last week for home loans and residential property is this: State Bank of India (SBI) has frozen interest rates at 8% for a year for new home loan customers. Now SBI has one of the most (if not “the most”) attractive home loan interest rate in India. And SBI is SBI…dependable PSU bank that will not go anywhere till India is intact.
So we are seeing many people getting ready to move away from ICICI Home loans and HDFC Home loans to SBI. Some people have reported that ICICI is charging 11% to 15% even after RBI’s reduction of rates. So in this case, that decision to move to SBI makes good logic, if ICICI or HDFC are not willing to match the 8% interest rate. You should not pay 3-5% more interest than the lowest rate in the market.
Please check with your bank ASAP on what is they best rate they can offer you. Its a good time to negotiate some decrease in interest rate.
Of course, there is some paperwork needed, and you have to check the specific exit terms and conditions of your current Home Loan.Switching a loan from one bank to another bank is subject to approval of the original bank, and not many existing borrowers with private sector banks may be keen to shift. In fact, a customer may have to give 2% of the loan amount as “prepayment charges” which can be a big deterrent for existing home loan borrowers to shift from their bank.
According to Rajiv Sahni, partner at Ernst & Young (real estate practice): “Following RBI’s cut of major rates such as repo, most banks were pressed by the government to pass on benefits to customers. SBI’s recent rate freeze at 8% for new home loan customers is one such example. Other public sector banks are expected to follow suit. While this may see a marginal shift of customers to PSU banks in the immediate future, private banks are likely to follow suit if they see a positive trend in customers’ reaction to such rate cuts.”
Real Estate Developers believe that the current interest rate reduction by SBI (and other PSU banks) will draw attention of all the home loan borrowers in these difficult times. Sunil Bedi of JMD Group fees that this step by SBI is bound to lead people from private banks to shift to PSUs. It will help save around 3-4% of the interest cost, which will be huge. And R K Mittal of CHD Developers feels that consumers will definitely want to move to PSU banks due to lower interest rates.
*And now, here’s our view*
If you are looking to buy a new home, remember that Real Estate developers are undergoing huge liquidity crunch, and and no price is non-negotiable. If the property price is R50 lakh, ask for Rs 40 lakh. Those real estate developers who are keen to survive this credit crunch period will respond positively to your message, because they will be glad to sell some of their inventory, and reduce their interest burden.
Remember that our Real Estate developers are currently having huge interest burdens, often at rates above 25%. In general, the property prices should correct further downward in the coming 2-3 months.
If my monthly take home pay Rs.12,000/- then how mach iI can get Loan amount when it will be deduction for 15 years.
I need Home Loan. please help
hi
i want to talk that your loan interest are good but you have very bad loan process
i want to sbi branch but there are no reply for my loan request so do your process esay fo people
plz give me tips or help for taking home loans fast as possibal
if my monthly take home salary Rs.6000/-then how much i can get loan or not plz give me tips as early as possible
Hi Subhasish: thanks for asking a question, which I get often from people who are buying homes for the first time.
My sincere suggestion (after seeing 100s of cases) is this: Please take a home loan such that the EMI is “not” more than 30% of your take-home salary.
So if your take home salary is Rs 6000 pm, then the maximum EMI you can repay safely is Rs 1800.
Now, at 8% interest and 15 year loan-tenure, it means a home loan of Rs 1.9 lakh. Even if somebody is giving you more loan, don’t take it, because you will feel trapped if you lose your job or income for any reason. Don’t take more than this amount, even if the bank is willing to give!
Please take home loan carefully after considering your future income potential. You will be much more happy with a smaller home with comfortable EMI payments, than with a bigger home and a burden of debt. It is better to take a smaller home loan and repay it sooner (if you have more income tomorrow).
You can use this Home Loan EMI calculator for more calculations.
http://wealth.moneycontrol.com/emi_calculater.php
All the best!
Shankar
Hi, i am suresh i am working in dubai, and my salary 55000/- Rupees per month so, how much i can get loan i need loan in S.B.I Bank only can u suggestion me.
SURESH
DUBAI
DEAR SIR,
I AM VERY MUCH DISTURB & CONFUSSED ABOUT THE INSTALLEMENT SYSTEM OF SBI HOME LOAN SIR I TOOK A HOME LOAN FOR B.T. ROAD BRANCH OF SBI KOLKATA,BUT THEY ARE IMPROPERLY CUT THE INTEREST IN MY ACCOUNT FOR HOME LOAN BUT THE CAPITAL IS REMAINING SAME FOR LAST THREE YEARS.
CAN YOU SOVE MY PROBLEMS OR GIVE DETAIL INFO. ABOUT WHOM I CONTACT.
THANKS & REGARDS,
NANDJI SINGH
KOLKATA
DATE-30.06.2009
Dear Nandji,
Thanks for writing your problem with SBI home loan. Since I do not have all the details, it is difficult for me to suggest the best solution. However, you must surely visit the SBI BT Road branch, Kolkata and ask the Home Loan team to explain exactly how they are cutting the interest and the capital payment from you. If there is a difference between the home loan repayment plan given to you 3 years back vs what they are actually cutting per month, then you should ask them for explanation. Don’t be shy about it. If you have a specific question, you can contact me again from the contact page.
Best Wishes,
Shankar
Dear Suresh (from Dubai), please use this Home Loan EMI calculator for calculations.
http://wealth.moneycontrol.com/emi_calculater.php
Please also read my earlier comments on this page. They will help you.
All the best,
Shankar
i want to talk that your loan interest are good but you have very bad loan process
i want to sbi branch but there are no reply for my loan request so do your process esay fo people
Thanks
Nagmani Rai
Dear Sir
I borrowed the loan from SBI, Nagpur. They gave the xerox copy of cheque of Rs. 1200000 on 10th Oct’09. But as the registry was made on 27/10/09, so the original cheque I took from them was on the same date and it took 2 days for clearence.Now they are charging the interest from 10th Oct’09 and not from 27/10/09. What can be done on this. Please guide me.
Dear Sir,
Dear Sir,
I am currently residing in dubai.What can I do inorder to get SBI loan from a branch in bangalore.
Please assist
Sirs,
Can u pls tell me how muth home loan will be approve ? if my take home salry is RS. 11700 PM.
Thnks in adwance.
Regards,
Devesh
Dear Sir,
I borrowed the loan from SBI, Jalandhar. They have told me that the rate of intt. will be 8 % but my EMI is Rs. 9074 for 162 instalments amt of loan is Rs. 805000.
Do u think the rate of intt is 8%
are gave the xerox copy of cheque of Rs. 1200000 on 10th Oct’09. But as the registry was made on 27/10/09, so the original cheque I took from them was on the same date and it took 2 days for clearence.Now they are charging the interest from 10th Oct’09 and not from 27/10/09. What can be done on this. Please guide me.
borrowed the loan from SBI, Jalandhar. They have told me that the rate of intt. will be 8 % but my EMI is Rs. 9074 for 162 instalments amt of loan is Rs. 805000.
Do u think the rate of intt is 8%
I want home loan sum of Rs.300000.00 (Rupees three lacs only) for 15 years, so i want to know how much E.M.I P.M INCLUDING INTEREST, Last week Central Govt.announced home loan interest may be decresed 1% at Calcutta (W.B),
My salay P.M Rs.12000/= Kindly confirm My ID how much EMI value for 15 years, and what is requirement beyond lon for 600-800 sqft Flat Purchase.
Sbi always trying to do some thing new for the new customers of home loan. Like sbi cuts in the interest rates for the loan budget home loan buyers. I think it helps sbi home loan to maintain the market share of upto 50% and above.
Dear Ramesh (from Jalandhar), Sankar, Devesh,
please use this Home Loan EMI calculator for calculations.
http://wealth.moneycontrol.com/emi_calculater.php
This is an easy calculator to understand how much EMI is needed for what amount of home loan at a specific interest rate.
Dear Ramesh (from Jalandhar),
Yes, I have heard from a few people that SBI is giving xerox copy of cheque before, and starts calculating EMI from that date! It does not look logical, but you must ask for a clarification from the SBI Bank Manager, and if they are not answering, please add let me know by adding another comment, and I will tell you whom to contact with your complaint.
Best Wishes,
Shankar
Hi…
I want to know whether home loan is available for renovation of the old property???
Kindly reply…
thanks.
Dear Ramesh
With reference to your query (September 17, 2009, 10:48 am),
If your loan value is Rs. 8,05,000, nos. of months of repayment = 162, EMI = Rs. 9074, then the Interest Rate is 10%.
@ 8% interest rate, EMI should be = Rs. 8141
I think you should try for home loan emi calculator for SBI home loan, after compare you can easily choose your home loan plan.
i need home loan from SBI,,,pl help.
My take home salary is 24000 per month. I need a home loan of 12lacs from SBI in Pune. Will this much amount be approved by SBI? What would be the interest rate charged and what would be my EMI(tenure 15 or 20 years)
i think this bank is a wonderful bank to all banks
i am m.a qayuum iwant to a loan of200000rupees please you help me
if my in hand salary is 12,000 then how much of loan i can get from the sbi , and what is the emi for this .
2004 having SBI Home Loan of Rs.292000/- for 20 Yrs.
Paying EMI 2850/= per month.
I want to know, if advance payment is beneficiary to me ?
And how i can reduce my EMI ?
dear
sir i want to know how to become a SBI HOME LONES AGENT. i have some clints
Sir my salary is 6000 per month and i required 4lakh loan for home so is there any way to get a loan
sir my monthly salary is 15000 per month and i required 30lakh loan for my hoom so is there any way to get this loan.
sir, i want to buy a flat at kolkatta for 11 lakh rupees, is it possible for me to give 10% downpayment ,and get a loan for flat for a period of 15 years
Hello sir,
i buy old property in ahmedabad its price is 15,00,000/- and i have rs:-10,00,000/- so i want loan. my salery is 8,000/- p.m. so how can i get loan. plz inform me.
my salary is Rs.10,200/- per month. so how much home loan i can get from sbi ? i m not filling i.t. return.
Dear Sir,
Iam a resident of Dubai, iam planning to purchase a land in kerala for 3500000.I do have option to get loan from india and Dubai.Iam confused . is it good to take loan from india or dubai? reply
regards
Hello Kevin (from Dubai),
If you are purchasing land, then some of the tax benefits of housing loan will not apply (as you may know already). I think the Rupee will appreciate compared to US dollar in next 5-10 years – so factor that aspect if Dubai loan is a US dollar loan.
If interest rates are same, then my suggestion will be to use INR loan because if tomorrow you want to sell the land, it may be easier to sell the land. But if Dubai loan interest is much less, and you don’t anticipate selling the land in next 2-3 years, then Dubai loan might be preferable. Hope this helped.
Best Wishes,
Shankar
Hello Everyone,
I would like to advise you that when you decide how much EMI you want to take for your home loan, then please decide based on how sure you are about your future income. I am observing many people have taken homes with high EMIs but unable to pay it due to loss of job, reduced income due to other reasons etc.
Please factor some bad conditions in future while deciding home loan amount and EMI amount.
Best Wishes,
Shankar
How much loan i could get from SBI
My monthly income is Rs 11500/-
Working in a PVT LTD company
What documents they need for this?
How much loan i could get from SBI if i need 18Lacs
My monthly income is Rs 11500/-
Working in a builders & developers?
What documents they need for this?
I have taken a loan in SBI for 15 years. Now whether by any chance I have an option to reduce the number of years to 5 years or 3 years?
Sir,
I want to be a home loan agent to sale home loan. So, i want
to know about the process to become an advisor of home loan.
Please reply me.
Thanking You.
My names are mrs.Anita johson.I am a single parents.I needed an urgent loan for business and clearing of debts.I met a reverend who directed me to givers loan firm who granted me $£50,000 without stress.Since then i have decided to publish them all over for those who require loan to see.I have been scammed not ut i met them my story changed you can contact them via florasloanfirm@gmail.com
hello sir,
my salary is monthly 6500/- in hand and i required 250000/-lakh loan for home so is there any way to get a loan
I want to take home loan,but my salary is Rs. 12000 p.m as i am working with Pvt Ltd Company.
So how much loan will i get and am i elegible to take a loan please clarify me.
sir,i boorowed a home loan from sbi in 12may2009.they take interest 8% for 1st year which is ok but after the starting of 2nd year they r taking 11.25% interest I Think which is wrong.i m right or not?where i can complain becoz in sbi branch ,i complain in thrice but they take it seriously
If my monthly take home pay Rs.16,000/- then how mach iI can get Loan amount when it will be deduction for 15 years.
i want a home loan on sbi my salary is 70000/pm and iwant 2000000/ for constrution a home. how can aply to it and what is procidure of your bank .
dear sir/madam,
i’m working in dr reddys labs my monthly income is 15000/- gross.
what would be the emi for 10,00,000/- for 15yrs.
please do reply.
thanks.
we bought 2bhk in 2003.our 5lac(s) home lone is remaining so how much renovation lone we get? & for how much period? what would be the int. rate?
Pls give me tips or help for taking realty lon fast as possibal im government emply
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