EASY HOME LOANS?

NEW DELHI: State Bank of India, Deutsche Postbank, ING Vysya Bank and Punjab & Sind Bank are attempting to light up the festival season by How do you judge the true worth of a property?





Facts on down payments



Understanding Sub-PLR loans



Check out certain rights of a mortgagor







lending more for home purchases than they did six months back, thanks to availability of funds and rising trust in the borrower. But individuals are still not buying as high home prices keep them away from their dreams.







“The economy has improved and the liquidity situation is much better and interest rates have eased off considerably,’’ Anoop Pabby, joint managing director at Deutsche Postbank Home Finance, told SundayET. “It is only natural then that the home buyers expect the reduced risks to result in reduction in interest rates and relaxation of margin money norms.”







The housing finance company is now funding up to 80% of the property value to most salaried people and in a few cases up to 85%, depending on the credit worthiness of the borrower. This is more than the 70% it used to lend a few months back.







Indian mortgage lenders, who were funding as much as the full value of the property in some cases, tightened lending standards after the collapse of Lehman Brothers last year this month because of the liquidity crisis and a rise in defaults due to job losses. But the scene has improved since with the Reserve Bank of India cutting lending rates to record lows and pumping in unprecedented amount of money into the system.







Lenders such as ING Vysya Bank, and Punjab & Sind Bank have reduced the margin money requirement to 15-20% from 25-30% towards the cost of the house on their home loans — as they try to tap the potential home buyers. This leads to a borrower paying investing lesser capital than before. So on a home loan of Rs 25 lakh, a customer would need to pay only Rs 3.75 lakh now against Rs 6.25 lakh demanded earlier, where the margin norm is relaxed to 15% from 25%.







State Bank of India, which has cut the margin requirement to 20% from 25%, may reduce it a further 5%.



SOURCE;CENTRAL STAFF NEWS