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Home Loans in India by CBRE

A brief report on home loans in India by CBRE.

rrahilrafi
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Home Loans in India by CBRE

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  1. HOME LOANS IN INDIA A comprehensive report by Add a Footer

  2. Title: CONTENTS • ELIGIBILITY 02 • TYPES 03 • FLOATING VS FIXED INTEREST RATES 04 • PRE-EMI 05 • LOAN TO VALUE – INTRO 07 • LTV – CALCULATION & SLAB 08 • FOIR – INTRO 10 • FOIR – CALCULATION & SLAB 11 • TAX BENEFITS 12 • BEST BANKS 13 • INTEREST RATES – 2020 14 • SOURCES & CREDITS 15 Add a Footer

  3. ELIGIBILITY Add a Footer

  4. Types of home loans • Purchase of Residential Property • Construction of a House • Purchase of Land • House Expansion • Home Improvement Loans • Home Conversion Loans • Balance Transfer Home Loans • NRI Home Loans • Bridged Loans • Stamp Duty Loans Add a Footer

  5. Title FLOATING INTEREST RATES FIXED INTEREST RATES A fixed interest rate is one where the interest amount is fixed and does not vary depending upon market fluctuations. PROS • Greater predictability • Suitable for short-term loans CONS • Higher rate of interest • Limited repayment tenure • Prepayment penalty Also known as ‘adjustable rate home loans’, is a home loan where the interest rate keeps changing over the course of the fixed loan, due to differences in the market rate. PROS • Lower interest rates • Can reduce the total interest payable • No prepayment penalty CONS • Difficult to budget • Highly subjective to market factors Add a Footer

  6. PRE-EMI on Home Loan Pre-EMI is the applicable interest payment to the amount that is disbursed over the entire tenure of a home loan. It begins when the house is under construction. Once the structure is complete pre-EMI payments end, and generous EMI payments start. Equated Monthly Instalment (EMI) is a repayment option on a home loan where both interest and principal amount are paid to the lender through a fixed monthly payment. Nowadays, lenders are offering innovative methods for the repayment of the home loan. One of the options is the pre-EMI plan; wherein, the homebuyers only pay the interest amount on the partly disbursed home loan amount as per the stage of construction of the property. This plan is only applicable for under-construction properties. Add a Footer

  7. LTV Loan to Value Ratio

  8. LTV - INTRO The loan-to-value (LTV) ratio is based on the size of home loan sought and determines the maximum amount that can be sanctioned to a property buyer.. The LTV can range from 75 per cent to even 90 per cent of the property value and also depends on the borrower’s relationship with the lender and the scheme availed. A higher LTV implies a greater loan amount and therefore, lesser down-payment that you need to arrange out of your pocket. However, it also means a higher EMI. A lower LTV means that you have to arrange for a larger sum to be paid as down-payment. Add a Footer

  9. LTV CALCULATION & SlaBS Add a Footer

  10. FOIR Fixed Obligation to Income Ratio

  11. Fixed Obligations to Income Ratio (FOIR) is the parameter used by banks and other financial organisations to determine the eligibility for a loan of an individual. The FOIR of a person is derived by taking into account all the fixed monthly obligations that he or she should meet without including the statutory deductions such as Provident Fund, Investment Deductions, or Professional Tax. While additional expenses such as rent can also be considered as fixed obligation depending on the level of income, the FOIR reflects the disposable income of a candidate that can be used to pay off his or her debts - existing and new. Therefore, the loan eligibility of an individual highly depends on his or her FOIR. FOIR - INTRO Add a Footer

  12. FOIR - CALCULATION & sLABS The formula for calculating the FOIR: FOIR = (All Existing Obligations/Net Monthly Salary) * 100 FOIR SLABS : Add a Footer

  13. Tax Benefits on Home Loan Add a Footer

  14. SBI • HDFC Bank • LIC Housing Finance • AXIS Bank • ICICI Bank • IDBI Bank • Bank of India • PNB Housing • Others BEST BANKS FOR HOME LOANS Add a Footer

  15. HOME LOAN Interest Rates - 2020 Add a Footer

  16. Title: • Sources • Moneycontrol.com • Bankbazaar.com • Financialexpress.com • Hdfc.com • Investopedia.com • Moneytap.com • Goodreturns.in • Makaan.com • Housing.com • Rbi.org.in • Andrewprokos.com Created by Rahil Mohamed Rafi CBRE – Residential Add a Footer

  17. THANK YOU Add a Footer

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