Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

In view of cash crunch being faced by borrowers, the <keyword id="30067" type="ORGANIZATION" weightage="100" keywordseo="RBI">RBI</keyword> today provided additional 60 days for repayment of housing, car, farm and other loans worth up to Rs 1 crore. 
 
This is applicable to loans payable between November 1 and December 31, the RBI said in a notification. 
 
"... it has been decided to provide an additional 60 days beyond what is applicable for the concerned regulated entity for recognition of a loan account as substandard," it said. 
 
The above relaxation is available to entities running working capital accounts with any bank with the sanctioned limit of Rs 1 crore or less. 
 
Term loans, whether business or personal, secured or otherwise, the original sanctioned amount of Rs 1 crore or less, on the books of any bank or any NBFC, including NBFC (MFI) would also get benefit of this relaxation. 
 This will also include <keyword id="6395113" type="UNKNOWN" weightage="100" keywordseo="housing-loans">housing loans</keyword> and agriculture loans, it said. 
 
he apex bank further said that all regulated financial institutions should note that this is a short-term deferment of classification as substandard due to delay in payment of dues arising during the period specified above and does not result in restructuring of the loans. 
 
"Dues payable before November 1 and after December 31, 2016, will be covered by the extant instruction for the respective regulated entity with regard to recognition of NPAs," it said. 
 he <keyword id="3315394" type="UNKNOWN" weightage="100" keywordseo="demonetisation">demonetisation</keyword> of higher value currency notes has affected normal banking activities including clearing of cheques. Besides, borrowers are unable to get payments from their creditors due to various restrictions including cash withdrawal limit of Rs 24,000 per week, limiting their options to repay their dues. 
 
DHFL Chief Executive Officer Harshil Mehta said, "It is a welcome move by the RBI as many customers have expressed their inability to repay dues in time because because of ongoing demonetisation drive." 
 
For many of them, EMIs are due in the first half of the month, so the relaxation will help keep account standard even when the payment is not received, he said. 
 
Neither borrowers' credit score is impacted negatively due to non-payment nor financial institutions have to make additional provisions for sub-standard account, he added.

Demonetisation: RBI gives borrowers 60 more days to repay car and house loans worth upto Rs 1 crore

<ul><li>The automobile sector workforce is one of the biggest drivers of affordable housing especially homes which are priced under ₹4million. Due to an auto sector slump, key real estate hubs like Pune, Chennai and National Capital region were affected which also happens to house auto manufacturing plants. </li><li>The sector has 124,000 affordable homes which are unsold, and the auto slowdown will add more to the pile. </li></ul>Millions of jobs have been lost in India’s auto sector as sales of both cars and trucks have been falling for months in a row. The rising unemployment is a risk for three of the country’s biggest property markets — national capital region including New Delhi and Gurgaon, Pune, and Chennai-- which are also hubs for car makers. The three auto hubs constitute over 40% of total affordable home sales in India. The job losses and the subsequent cash crunch may not only hurt people who already burdened with home loans and monthly instalments, it may even force potential buyers to stay away from new investments in property. The result may be a fall in home prices.“The automobile sector workforce is one of the biggest drivers of affordable housing especially homes which are priced under ₹4 million. A crisis in the automobile sector creates a significant perception of job risk, which causes this key clientele to desist from home buying decisions,” said Prashant Thakur, Director &amp; Head – Research, ANAROCK Property Consultants. Developers hope that the cut in goods and services tax for automobiles will ease the stress and bring back jobs. The real estate sector in India has been stuck in a rut for the last four years with some sign of improvement in 2018. The current slowdown may curtail the recovery. Table: New Affordable Supply H1 2017 – H1 2019 <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#bdd7ee;padding:5pt 5pt 5pt 5pt;">City </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#bdd7ee;padding:5pt 5pt 5pt 5pt;">New Launches in 2017 (&lt;INR 40 lakh) </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#bdd7ee;padding:5pt 5pt 5pt 5pt;">New Launches in 2018 (&lt;INR 40 lakh) </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#bdd7ee;padding:5pt 5pt 5pt 5pt;">New Launches in H1 2019 (&lt;INR 40 lakh) </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">NCR </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">14,510 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">12,120 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">9,290 </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">Pune </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">11,090 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">12,630 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">12,230 </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">Chennai </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">2,080 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">7,640 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">3,010 </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">Total </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">27,680 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">32,390 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;">24,530 </td></tr></tbody></table> Source: ANAROCK Research There are already 124,000 unsold homes in the affordable segment (priced under ₹4 million) and any further increase in inventory will hurt prices if there isn’t enough demand for new homes. See also: <a href="https://www.businessinsider.in/indian-auto-manufacturers-have-laid-off-350000-jobs-in-four-months/articleshow/70563890.cms">Indian auto manufacturers axed 350,000 jobs in four months — and there are more to go</a>

Property prices in three big Indian cities may fall due to millions of jobs lost in the auto sector

<keyword id="19922074" type="General" weightage="20" keywordseo="Reserve-Bank" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank" meta.hostid="261" meta.entityid="Reserve Bank">Reserve Bank</keyword> Governor Shaktikanta Das on Thursday said surge in top-up <keyword id="21191532" type="General" weightage="20" keywordseo="housing-loans" source="keywords">housing loans</keyword> is not a system-wide issue but confined to few entities. Briefing media after the announcement of bi-monthly monetary policy review, Das said, "regulatory requirements in top-up housing loans are not being followed by certain entities and it is not a system-level problem." Such cases are being dealt at the supervisory level bilaterally, he said. Banks and <keyword id="19938300" type="General" weightage="20" keywordseo="NBFCs" source="keywords" meta.keywordsubtype="org" meta.entityname="NBFCs" meta.hostid="261" meta.entityid="NBFCs">NBFCs</keyword> have also been offering top-ups on other collateralised loans like gold loans. "Such practices may lead to loaned funds being deployed in unproductive segments or for speculative purposes. Banks and NBFCs would, therefore, be well-advised to review such practices and take remedial action," he said. Therefore, he said, banks should adhere to regulatory prescriptions relating to loan-to-value (LTV) ratio, risk weights and monitoring of end use of funds with regard to top-ups. Das further said that the divergence between loan and deposit growth may create asset liability mismatch or <keyword id="22712997" type="General" weightage="20" keywordseo="liquidity-management-issue" source="keywords">liquidity management issue</keyword>. It may potentially expose the banking system to structural liquidity issues, he said. He urged banks to mobilise deposits through innovative products and services by leveraging their vast branch network. On inflation, Das said, it is moderating but the pace of disinflation is uneven and slow. Pinning hopes on monsoon, which is 7 per cent higher than long-term average so far, the Governor said, it will have a good impact on Kharif output as well as Rabi because of improvement in moisture content in the soil. SEE ALSO:<a href="https://www.businessinsider.in/business/news/ola-wants-to-re-enter-the-quick-commerce-business-to-take-on-blinkit-and-swiggy-instamart/articleshow/112364583.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/news/ola-wants-to-re-enter-the-quick-commerce-business-to-take-on-blinkit-and-swiggy-instamart/articleshow/112364583.cms" target="_blank">Ola wants to re-enter the quick commerce business to take on Blinkit and Swiggy Instamart</a><a href="https://www.businessinsider.in/finance/banks/news/rbi-mpc-meet-cheque-clearing-time-reduced-upi-limit-increased-for-tax-payment/articleshow/112366099.cms" target="_blank"></a> <a href="https://www.businessinsider.in/finance/banks/news/rbi-mpc-meet-cheque-clearing-time-reduced-upi-limit-increased-for-tax-payment/articleshow/112366099.cms" target="_blank">RBI MPC meet – Cheque clearing time reduced, UPI limit increased for tax payment</a><a href="https://www.businessinsider.in/business/auto/news/tata-curvv-ev-with-up-to-585-km-range-launched-starting-at-17-49-lakh/slidelist/112342769.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/tata-curvv-ev-with-up-to-585-km-range-launched-starting-at-17-49-lakh/slidelist/112342769.cms" target="_blank">Tata Curvv EV with up to 585 km range launched starting at ₹17.49 lakh</a>

Surge in top-up housing loans not system-wide issue, says RBI Governor

<ul> <li>Housing sales rose by a whopping 71% in the first quarter of the current year, as compared to the same quarter two years back.</li><li>As many as 6.65 lakh units are yet to be sold across top seven cities</li><li>Bangalore was the biggest winner in this trend as its unsold inventory went down by 44%</li></ul>Indians buyers are coming home to the real estate sector. In the top seven cities, the housing sales rose by a whopping 71% in the first quarter of the current year, as opposed to the mere 46,000 units sold in the same quarter, two years back, according to ANAROCK Property Consultants. The <keyword id="7695553" type="UNKNOWN" weightage="20" keywordseo="Indian-Housing-sector">Indian housing sector</keyword> has started coming out of the shadows after a state of stagnation for over four years. Favourable property prices along with cuts in Goods and Services Tax (GST) and home loan rates are helping the sector recover from its lows. “The extremely worrisome trend of rising inventory since 2014 onwards has effectively been arrested, with data clearly suggesting a q-o-q unsold stock decline in the seven main cities from Q1 2017 onward. In the coming quarters, a stable government at the Centre will boost buyer confidence further and increase housing sales velocity,” said a report by ANAROCK Property Consultants. Bangalore clocks in sales As many as 6.65 lakh units are yet to be sold across the top seven cities of Delhi-NCR, Mumbai metropolitan region, Bangalore, Hyderabad, Chennai, Pune and Kolkata. Currently, these seven cities are holding on to inventory which will probably get sold in 30 months. In the same quarter two years back, it was at 50 months. In real estate, an inventory overhang of over 18-20 months is considered healthy. Bangalore was the biggest winner in this trend as its unsold inventory went down by 44%, indicating high sales. Hyderabad’s pent up inventory went down by 21%. Delhi NCR went down by 18%, but the only city which remained untouched by this trend is Mumbai metropolitan. Its unsold inventory went down by a mere 4%! This increase in interest in the sector has come even without large scale movement in prices of properties. “Average property prices across cities have largely maintained status quo and saw less than 2% rise in the last two years – from INR 5,480 per sq. ft. in Q1 2017 to INR 5,570 per sq. ft. in Q1 2019,” said Anuj Puri, chairman of ANAROCK Property Consultants.

Cuts in home loan rates push sales across top cities

<keyword id="1390483" type="General" weightage="20" keywordseo="housing-sales" source="Orion">Housing sales</keyword> rose 36 per cent year-on-year to a record 1,20,280 units across seven major cities during the July-September period on robust demand amid stable mortgage rate, according to Anarock. Housing sales stood at 88,230 units in the year-ago period across the seven major cities. Releasing the data, real estate consultant Anarock said average <keyword id="6468581" type="General" weightage="20" keywordseo="housing-prices" source="Orion">housing prices</keyword> across the seven cities grew 11 per cent annually in the July-September period this year. Hyderabad saw the highest rise of 18 per cent. Anarock highlighted that quarterly sales in July-September touched an all-time high. In housing data, sales of apartments, villas and independent floors are included while plots are excluded. Anarock Chairman Anuj Puri highlighted that Mumbai Metropolitan Region (MMR) and Pune contributed 51 per cent of the total sales. Puri noted that the continued healthy sales momentum is at least partially attributable to the repo rate pause maintained by the Reserve Bank of India in the two recent monetary policies. "This has kept <keyword id="173069" type="General" weightage="20" keywordseo="home-loan-interest" source="Orion">home loan interest</keyword> rates stable, keeping housing purchase sentiment high," he added. According to the data, housing sales in Delhi-NCR rose 6 per cent to 15,865 units during July-September 2023 from 14,970 units in the year-ago period. In MMR, housing sales increased 46 per cent to 38,500 units from 26,400 units during the period under review. Housing sales in Bengaluru went up 29 per cent to 16,395 units during July-September this year from 12,690 units in the corresponding period of last year. In Pune, sales grew maximum by 63 per cent to 22,885 units from 14,080 units. Sales of <keyword id="135249" type="General" weightage="20" keywordseo="residential-properties" source="Orion">residential properties</keyword> in Hyderabad increased 41 per cent to 16,375 units from 11,650 units. In Chennai, housing sales rose 42 per cent to 4,940 units from 3,490 units. Housing sales in Kolkata went up 7 per cent to 5,320 units during July-September from 4,950 units in the year-ago period. "The ever-rising aspiration of owning a home mainly driven by rising income levels has meant a strong demand for housing over the last couple of years. The trend is expected to continue in the foreseeable future," Gurugram-based realty firm Krisumi Corporation Managing Director Mohit Jain said. The demand for <keyword id="457183" type="General" weightage="20" keywordseo="luxury-housing" source="Orion">luxury housing</keyword> too is likely to remain strong amid the desire for upscale living experiences, he said. "Keeping pace with the demand for luxury homes, the supply is also expected to remain strong," Jain said.

Housing sales up 36 pc in Jul-Sep in top 7 cities to record 1,20,280 units: Anarock

<keyword id="640142" type="General" weightage="100" keywordseo="housing-finance-company" source="Orion">Housing Finance Company</keyword> HDFC has increased its Retail Prime Lending Rate (<keyword id="413108" type="General" weightage="50" keywordseo="rplr" source="Orion">RPLR</keyword>) on housing loans by 5 basis points. The revision would come into effect from Wednesday itself. The upward revision in rates will essentially lead to an increase in EMIs for borrowers. The hike in rates came close on the heels of central bank <keyword id="30067" type="General" weightage="50" keywordseo="rbi" source="Orion">RBI</keyword>'s recent hike in repo rate by 40 basis points, besides giving indications it would raise rates further in the upcoming monetary policy review meets. On Wednesday, <keyword id="62034" type="General" weightage="50" keywordseo="punjab-national-bank" source="Orion">Punjab National Bank</keyword> (<keyword id="47268" type="General" weightage="50" keywordseo="pnb" source="Orion">PNB</keyword>) too raised its marginal cost of funds-based lending rate by 15 basis points with immediate effect. Recently, banks such as <keyword id="13222" type="General" weightage="50" keywordseo="sbi" source="Orion">SBI</keyword> and <keyword id="6358007" type="General" weightage="50" keywordseo="bank-of-baroda" source="Orion">Bank of Baroda</keyword> too have hiked their lending rates across various tenures, as per reports. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/tech/mobile/news/moto-g82-5g-expected-to-launch-in-india-on-june-9-expected-price-specs-and-everything-you-need-to-know/articleshow/91919825.cms">Moto G82 5G expected to launch in India on June 9 – expected price, specs and everything you need to know</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/cryptocurrency/news/an-indian-home-can-live-for-a-year-with-the-energy-it-needs-to-mine-a-single-bitcoin/articleshow/91916128.cms">An Indian home can live for a year with the energy it needs to mine a single Bitcoin</a>

HDFC raises lending rates on housing loans by 5 basis points

The relationship between income and affordability for various income groups follows a nonlinear trend. Owning a house means investing a substantial amount of money – probably the single largest investment made by any person aspiring to purchase a house. It is obvious that many people may not have the means to buy a house and may have to look out for possible <keyword id="6357455" type="EVENT" weightage="40" keywordseo="Funding">funding</keyword> resources. Availing loans from banks or other financial institutions in the form of home loans or mortgages is one of the ways to fullfil your dream if you have a regular source of income. 
 Earlier the gap between middle-class income and cost of houses was huge, which made buying a house near to impossible. But during the last decade, the gap between the income level and the housing cost has come down significantly and more people are now interested in acquiring properties. That’s why there is increasing demand for middle-income housing. Moreover, <keyword id="6371181" type="UNKNOWN" weightage="40" keywordseo="interest-rates">interest rates</keyword> have also come down significantly, compared to what they were a few years ago. 
 
1) Avoid incurring more debts that you can handle. Since a mortgage loan involves a huge sum and a longer repayment period, it is crucial to take your repayment obligation seriously. Always remember that your home – your most important property – is at stake. Avoid applying for other loans that can be an additional burden. Keep your credit card spending in check. Whenever possible, try to pay more for your mortgage. The sooner you can complete your payments, the better. 
 
2) Arrange a fixed <keyword id="37018" type="UNKNOWN" weightage="40" keywordseo="interest-rate">interest rate</keyword> on your <keyword id="6354730" type="UNKNOWN" weightage="40" keywordseo="Home-loan">home loan</keyword>. It is recommended to choose a home loan with a fixed interest rate. Although a fixed-rate loan may start out with a higher rate, compared to a variable-rate loan, you can be assured that your monthly payment won’t change, regardless of the increased prime rate in the market. 
 
3) Consider getting a debt consolidation loan. If you are managing two or more types of loans, consider consolidating your debts for easier repayment. Consolidating or ‘merging’ your debts into a single loan can significantly lower the interest rate you are paying. 
 
4) Consider refinancing your loan. If you are in <keyword id="1009187" type="UNKNOWN" weightage="40" keywordseo="the-middle">the middle</keyword> of repayment, consider refinancing your current mortgage to lower your rate. Refinancing a loan is recommended, especially if you notice a considerable improvement in your credit score. 
 
5) Make a lump sum payment. If your finances allow you to pay your mortgage completely, do so. This way, you can be secure about your investment. 
 
6) Put in a large payment on your loan whenever possible. Instead of paying just the minimum due, try to pay more of your mortgage to cut down your balance more quickly. 
 
7) Don’t go for a loan just because it offers a very low rate. Do not sign up for a home loan just because it is offering a low interest rate. Keep in mind that a variable-rate loan is bound to change at any time during your repayment term. Half-way through your loan term, you may find that you are stuck with balloon payments, which can make repayment very difficult. 
 
8) Obtain a loan that gives you more options and flexibility. Look for a mortgage lender that offers flexible repayment options. Make sure that modification of your loan’s term is possible just in case anything unexpected takes place (for example, <keyword id="6358907" type="ORGANIZATION" weightage="40" keywordseo="unemployment">unemployment</keyword> or sickness). 
 
9) Go for a long-term mortgage. A home loan with a fixed interest rate and a reasonable repayment period will be less of a burden than a short-term loan with variable interest. 
 
10) Save for down payment. Submitting a higher down payment can reduce your loan interest rate by 20-25%. Therefore, prepare your down payment prior to acquiring a mortgage loan. 
 
11) List of savings/investments. Make a list of all the loans and savings/investments that you have made. Do you find instances where the savings/investments are giving lesser returns than the loan rates? This can typically be seen in endowment <keyword id="35450" type="COMPANY" weightage="40" keywordseo="insurance">insurance</keyword> plan, EPF and PPF, postal deposit and even ULIP. Why should you <keyword id="47916" type="UNKNOWN" weightage="40" keywordseo="invest">invest</keyword> in something when you are paying higher interest to somebody else? It is better to close all or most of these lesser returns savings/investments and divert the funds to close the home loan. 
 
12) There are ways to come out of the EMIs and make your loan tenure shorter. These include: 
1. Partial pre-payment 
2. Switching to a lower rate 3. Increasing the <keyword id="6357050" type="COMPANY" weightage="40" keywordseo="EMI">EMI</keyword> 
 
Now let us look at these options in more detail. The best part is – these options do not, in any way, add to your existing budget. 
 
13) Partial pre-payment. This is the easiest way to close a housing loan faster. The method is to make use of any one-time income such as bonus, salary arrears, gifts from friends/relatives, any windfall from the <keyword id="6357040" type="UNKNOWN" weightage="40" keywordseo="Share-Market">share market</keyword>, money from a property sold, deposits closed, tax-saving <keyword id="6362476" type="ORGANIZATION" weightage="40" keywordseo="investments">investments</keyword> maturing, closure of <keyword id="25450" type="UNKNOWN" weightage="40" keywordseo="savings">savings</keyword> that are giving you lesser returns than the housing loan, etc., to partially close the housing loan. 
 
These one-time payments help reduce the principal balance in the loan. And when the EMIs continue, they have to cover less principal. 
 
So the same EMIs require less time to close the loan. The earlier and more frequently these partial pre-payments happen, the faster you can close the loans. 
 
The author Brijesh Parnami is the CEO, Distribution at Destimoney.

13 Ways To Manage Your Housing
Finances Better

Changes and evolving regulatory policies are the usual norms of an economy. And every industry operating within an economy undergoes the same. So it is not surprising that India, revered as a fast developing economy, has witnessed several changes and new regulations have been brought about. 
 
Following the footsteps of several western countries, the government of India introduced the concept of reverse mortgage loans back in 2006. This brought in certain changes within the Indian property market as it opened up a new window for the elderly in the country. Reverse mortgage is the type of home loan that is available exclusively to senior citizens. Also, a reverse mortgage loan is the exact opposite of a typical mortgage loan. 
 
What is reverse mortgage loan? It is a form of loan particularly designed for senior citizens (who are over 60 years of age) and the loan is granted against the equity of property. The borrower does not need to make any statutory payment during his/her entire life for loan against this property. Under the scheme, the equity of the house property is renewed into an income channel without having to liquefy the equity. One of the biggest benefits offered by the reverse mortgage loan is that, in spite of mortgaging the house, the owner has the authority to retain its ownership and can choose to live in the same house for his/her entire life. For example, if a senior citizen wishes to <keyword id="47916" type="UNKNOWN" weightage="40" keywordseo="invest">invest</keyword> in a residential property in Bangalore and considers a suitable home loan, a reverse mortgage loan can turn out to be quite helpful. 
 
How reverse mortgage loan is different from traditional home loans In a normal housing loan, every <keyword id="6357050" type="COMPANY" weightage="40" keywordseo="EMI">EMI</keyword> paid towards servicing the loan increases the home equity. Once the loan has been fully paid, the equity becomes 100%. But reverse mortgage is exactly the opposite. When one chooses to pledge one’s house for reverse mortgage, the home equity decreases with every disbursal. While in a traditional home loan you have to pay an EMI, the same is not applicable in case of a reverse mortgage loan. 
 In India, Dewan Housing <keyword id="25455" type="ORGANIZATION" weightage="40" keywordseo="finance">Finance</keyword> was the first financial institution to launch reverse mortgage loans in 2006. The name chosen was Saksham. Currently, more than 25 prime lending institutions offer reverse mortgage loans. Some of these include the State <keyword id="6355303" type="CITY" weightage="40" keywordseo="Bank-of-India">Bank of India</keyword>, Andhra Bank, Indian Bank, <keyword id="6357132" type="CITY" weightage="40" keywordseo="Canara-Bank">Canara Bank</keyword> and <keyword id="6369971" type="CITY" weightage="40" keywordseo="Corporation-Bank">Corporation Bank</keyword>, among others. <keyword id="6371181" type="UNKNOWN" weightage="40" keywordseo="interest-rates">Interest rates</keyword> for these organisations vary from 10-13% with minimal processing fees. Now the minimum tenure of loan is 10 years and extendable up to 20 years. 
 
Eligibility criteria and how a senior citizen can benefit 
Basic eligibility criteria for availing reverse mortgage loans are: 
· Owner of the house should be more than 60 years of age. 
· The residential property should be self-acquired. 
· If spouse of the owner is a co-applicant, he/she should also be over 58. 
 
So how foes a senior citizen benefit from this? Well, here are some of the ways: 
· In old age when medical expenses begin to rise, RML can obviously come to the rescue. 
· It helps in unlocking illiquid wealth and ensures income generation; it also helps in converting investment into a property into a lump sum or a certain periodic cash flow. 
· The loan provides security to the elderly. 
 
Role of National Housing Bank in promoting RML 
The National Housing Bank (NHB), a 100% subsidiary of the Reserve Bank of India, has been instrumental in fostering the growth of RML in India. The NHB is solely responsible for regulating and refinancing all primary lending institutions to the extent that RML is disbursed by them. The NHB also takes the guarantee to every senior citizen who wishes to avail the benefits of the loan. 
 
There have been multiple speculations about the acceptance and the success of reverse mortgage loans in India. Reviews and perspectives have been mixed. In a survey conducted in Delhi, Kolkata, Chandigarh and Hyderabad, it was revealed that a majority of the borrowers had a favourable take on reverse mortgage loans while most of them had some issues or other about their long-term implications. 
 
Implications of reverse mortgage loans 
However, reverse mortgage loans have recorded certain social implications. As per traditions, Indians have always expressed their desire to pass on their properties to their heirs. With this kind of mental set-up, it obviously takes a considerable time to accept the change. Nonetheless, with changing social mores, the fear of debt has begun to subside. Moreover, the knowledge that in time of medical emergency or any other financial need, senior citizens can always fall back on the cash flow are enlightening the younger generation. 
 
Experts feel that India is a potential market for reverse mortgage loans in keeping with its growing economy, current growth rate, disposable income and life expectancy. While some speculations continue to spark debates, reverse mortgage in India is predicted to perform well in the time to come. 
 
Sampurna Majumder is a professional writer who writes for <a href="http://www.99acres.com">www.99acres.com</a>

Reverse Mortgage Loans In India: A Great Support For Old Age

Looking back five years later, there are plenty of cringe-worthy moments from the precipice of the <keyword id="6371665" type="UNKNOWN" weightage="60" keywordseo="financial-crisis">financial crisis</keyword>.
Ben Bernanke's <a href="http://www.cepr.net/index.php/bernanke-greatest-hits">famous 2005 call</a> that housing prices could not possibly fall nationwide comes to mind.
"<a href="http://www.businessinsider.com/money-for-nothing-film-2013-9">Money For Nothing: Inside the Federal Reserve</a>," a new documentary looking back on 100 years of monetary policy, is particularly good at plucking out these unforgettable pieces of history.
Perhaps the most awkward one from the film is <a href="http://www.youtube.com/watch?v=Ei5OrV-CmHg">this Countrywide advertisement from 2006</a>. Of course, two years later Bank of America would <a href="http://money.cnn.com/2008/01/11/news/companies/boa_countrywide/">purchase the failing Countrywide for $4.1 billion</a>. But for now, let the good times roll!
If you want to see everything wrong with subprime loans in one 30-second clip, this is it. <a href="http://www.youtube.com/watch?v=Ei5OrV-CmHg">Watch the clip</a>:

This Housing-Bubble Era Home Loan Commercial Will Make You Cringe

<ul class="summary-list"><li>The Illinois SmartBuy program pays off up to $40,000 in <keyword id="35522" type="ORGANIZATION" weightage="60" keywordseo="student-loans">student loans</keyword> to help buyers buy a house.</li><li>The program also provides $5,000 to be used for a down payment or closing costs.</li><li>With house prices reaching record highs, the program may help increase home equity and affordability.</li></ul>If you live in Illinois and have outstanding student loans, the state could pay off some of your debt to help you buy a house. The SmartBuy program, offered by the Illinois <keyword id="35061" type="ORGANIZATION" weightage="60" keywordseo="housing">Housing</keyword> Development Authority, helps anyone who wants to buy a home in Illinois by paying off up to $40,000 in <keyword id="1737245" type="COMPANY" weightage="60" keywordseo="Student-Debt">student debt</keyword>, or a loan amount equal to 15% of the home purchase price. According to the <a href="https://www.chicagotribune.com/real-estate/ct-re-student-loan-home-purchase-ihda-smartbuy-20210405-qxqzzj2h6namrb3s4jfc6f2xy4-story.html">Chicago Tribune</a>, between the start of the program in December and early April, it has paid off an average of $24,100 in student debt for each buyer, and people from outside the state have even been inclined to move there to make use of the program."I'm getting a lot of interest," Chanon Slaughter, a vice president of mortgage lending at Guaranteed Rate, told the Tribune. "I am getting folks literally saying, 'I want to move back to Chicago for this program.'"Along with paying off student loans, the program also provides $5,000 that can be used for a down payment or closing costs.There are a few catches, though: A buyer's outstanding student debt must be paid in full at the time of the home purchase, and if the buyer chooses to sell the house within three years of the purchase, they must repay a portion of the student loan assistance. The other catch is that Illinois has allocated $25 million to the program, so it's only expected to help between 600 and 1,000 homebuyers.Here are the program's eligibility requirements, according to its <a href="https://www.ihdamortgage.org/smartbuy">website</a>:<ul><li>The buyer must have at least $1,000 in student loans;</li><li>The buyer's FICO "mid-score" must be 640 or higher;</li><li>The buyer's income must be under or at the limits for the county where the property is located, which can be found on the <a href="https://www.ihdamortgage.org/limits">IHDA mortgage website</a>; </li><li>And the assistance cannot be applied retroactively - the buyer must be buying a new primary residence.</li></ul>This program has the potential to tackle two simultaneous affordability crises - the $1.7 trillion pile of student debt and the skyrocketing price of the median house since the housing market reopened during the pandemic, exacerbated by a serious inventory shortage. It isn't the only experimental economic program being offered in Illinois, either. Evanston, a city in Illinois, approved spending on March 22 for a <a href="https://www.chicagotribune.com/suburbs/evanston/ct-evr-evanston-reparations-program-cb-20210324-cjxq5tvee5ff7eqs3gh65kldvq-htmlstory.html">$10 million reparations fund</a> that compensated Black residents through $25,000 housing grants.Insider <a href="https://www.businessinsider.com/why-is-lumber-so-expensive-homebuilding-real-estate-newbuild-inventory-2021-3">previously reported</a> that the average home sale price hit a record high March, and the spiking housing costs have concerned housing experts, like Redfin Chief Economist Daryl Fairweather, who said in a <a href="https://www.mansionglobal.com/articles/record-number-of-u-s-homes-selling-for-more-than-asking-price-225704?mod=hp_minor_pos23">statement</a> that they could be putting homeownership out of reach for too many Americans."That means a future in which most Americans will not have the opportunity to build wealth through home equity, which will worsen inequality in our society," Fairweather said.

Illinois could pay off up to $40,000 of your student loans to help you buy a house

You heard it right. You can pay your entire loan to any <keyword id="100080" type="ORGANIZATION" weightage="20" keywordseo="housing-finance">housing finance</keyword> company or even a non-banking finance company. But, the cash in each instalment should be less than Rs 2 lakh. As per the new guidelines, cash payments/receipts of or over Rs 2 lakh are illegal and will attract penalty. The finance ministry has stated prohibition of cash payment would only apply to repayment of a single loan instalment in cash and not to the aggregate amount. Under Section 269ST, any person to receive amount of Rs 2 lakh and above in cash is prohibited. A circular by the <keyword id="65338" type="ORGANIZATION" weightage="20" keywordseo="Income-Tax-Department">income tax department</keyword> states receipt of repayment of loan by the Non-Banking Finance Companies (<keyword id="6355260" type="CITY" weightage="20" keywordseo="NBFC">NBFC</keyword>) and <keyword id="168537" type="UNKNOWN" weightage="20" keywordseo="housing-finance-companies">Housing Finance Companies</keyword> (HFC) will fall under the purview of section 269ST clause (b) if the repayment of 'one' loan instalment is equal to or above Rs. 2 lakh. All the instalments paid for a loan shall not be aggregated for the purposes of determining applicability of the provisions of section 269ST.

You Searched For "housing loans" and got 11 results

Demonetisation: RBI gives borrowers 60 more days to repay car and house loans worth upto Rs 1 crore

BI India Bureau

Property prices in three big Indian cities may fall due to millions of jobs lost in the auto sector

Preeti Soni

Surge in top-up housing loans not system-wide issue, says RBI Governor

PTI

Cuts in home loan rates push sales across top cities

Katya Naidu

Housing sales up 36 pc in Jul-Sep in top 7 cities to record 1,20,280 units: Anarock

PTI

HDFC raises lending rates on housing loans by 5 basis points

IANS

13 Ways To Manage Your Housing Finances Better

Brijesh Parnami

Reverse Mortgage Loans In India: A Great Support For Old Age

Sampurna Majumder

This Housing-Bubble Era Home Loan Commercial Will Make You Cringe

Steven Perlberg

Illinois could pay off up to $40,000 of your student loans to help you buy a house

Ayelet Sheffey

You can repay your entire loan in cash, but here’s the catch

BI India Bureau

Popular Keywords

Buying Guides