Yes indeed you need to have an insurance when you buy a property. But it need not be a home insurance always. You can have a term insurance instead which will have a high cover with less premium. By doing this you will cover the home loan as well as your loan amount will be covered.
Hi Deepali, A new home loan scheme is also launched by SBI yesterday. Now you can get 20% more home loan via interest-only EMIs.
But there is certain terms and conditions for availing this new home loan. This new home loan is available mainly to salaried individuals with a 2-year track record. The upper age limit for this scheme is 45 years. Given the target group, the bank offers loans with a repayment tenure of 25-30 yrs under the scheme.
Gr8 Nikita.....This will help a lot to the home loan borrowers as customers will be free to make prepayments towards their home loan without any prepayment penalty.
Now, the banks may specify interest reset rates on their floating rate loans. They will have the options to offer loans with reset dates linked either to the date of sanction of the loan /credit limits or to the date of review of MCLR. The periodicity of reset shall be one year or lower.
Its really a good move by RBI and this guidelines are also expected to ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.
As per the final guidelines, all rupee loans sanctioned and credit limits renewed w.e.f. April 1, 2016 will be priced with reference to the marginal cost of funds based lending rate (MCLR) which will be the internal benchmark for such purposes.
Hi Puneet, While these guidelines will benefit the new customers, existing customers will also have an option to shift to the new regime with some conditions. Because, the guidelines are to be applied with effect from April 1, 2016 on new loans taken thereafter as well as loans getting renewed after that date.
Right Gautam, Enough time has been given to bank to switch over to the new regime of marginal cost of funds based lending rates. And with this marginal cost of funds, including tenor premium, they have moved closer to international manner of benchmark rates.
At the same time, it may lead to increase in loan takeovers especially for better credit profile customers and one such significant segment could be home loans where pre-payment penalties are not there.
Yesterday, RBI has announced new rules for calculation of the base rate. From 1st April, 2016, all banks would have to follow a new and uniform methodology to calculate the base rate as per the marginal cost of funds. RBI has directed all banks must set their lending rates under the so-called marginal cost of funding each month, which is based on the cost of new deposits.