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March 27, 2008

Allahabad Bank cuts lending rate by 25 bps | INRnews

Mumbai, India, March 27, 2008 - Allahabad Bank, one of the leading nationalized banks of the country, has decided to cut its Benchmark Prime Lending Rate (BPLR) by 25 basis points (0.25%) from the present rate of 13.25% to 13.00% with effect from 1st April, 2008. The reduction in BPLR has been announced having regard to present market scenario and the need to provide credit to productive sectors at affordable rate.

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February 28, 2008

LIC Housing Finance launches reverse mortgage for senior citizens | INRnews

Mumbai, India, February 28, 2008 - LIC Housing Finance Ltd (LICHFL), a leading player in the Indian housing finance sector, rolls out reverse mortgage loans for senior citizens above 60 years of age. The loan will be given on single or on joint basis with the spouse, if the spouse is over 60 years.

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February 23, 2008

Bank of Baroda slashes BPLR by 50 bps | INRnews

Mumbai, India, February 23, 2008 - In order to stimulate the demand for consumer and investment credit in a slowing economy, the Bank of Baroda has decided to reduce its Benchmark Prime Lending Rate by 50 basis points to 12.75% effective February 27, 2008.

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January 14, 2008

Home loan interest rates to come down | INRnews

Mumbai, India, January 14, 2008 - Leading bankers are suggesting that interest rates on home loans are likely to come down this year. This should be welcome news indeed to millions of borrowers who have seen interest rates go up significantly in the last two years.

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November 17, 2007

Average home buyers age in India comes down by 20 years | INRnews

Mumbai, India, November 17, 2007 - The average age of home buyers in India has come down by nearly 20 years according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

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Home loans now slightly cheaper | INRnews

Mumbai, India, November 17, 2007 - In addition to festival offers by banks on new home loans, some lenders are taking down interest rates a notch.Mumbai, India, November 15, 2007 - In addition to festival offers by banks on new home loans, some lenders are taking down interest rates a notch.

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November 01, 2007

SBI launches SBI Reverse Mortgage Loan | INRnews

Mumbai, India, November 01, 2007 - Leading bank, SBI has launced a reverse mortgage loan product designed for the benefit of senior citizens, above the age of 60 years. 

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September 23, 2007

RBI’s Monetary Policy Inimical To Real Estate: ASSOCHAM | INRnews

New Delhi, India, September 23, 2007 - The Reserve Bank of India (RBI) should immediately review its monetary policy to remove its excessive focus on taming inflation only and concentrate to reduce mortgage rate, besides take measures to curtail interest rates to enable wage earners to afford dwelling units.

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September 18, 2007

IDBI cuts fixed home loan rates | INRnews

Mumbai, India, September 18, 2007 - IDBI Ltd has cut the interest rates on fixed home loans by about 100 basis points (1%) with effect from September 1.

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September 13, 2007

India’s Home Loan GDP Ratio 5%, versus 50% In US & UK | INRnews

New Delhi, India, September 13, 2007 - Despite real estate witnessing boom in last couple of years with 90% of home loans borrowers being the first timers, home loans GDP ratio in India continues to be at meager 5% as against 50% in US and UK and therefore suggested that it be more than  doubled in budget proposals for 2008-09.

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September 05, 2007

Home Loan interest rates on the way down | INRnews

Mumbai, India, September 05, 2007 - Leading financial institutions are looking to reduce interest rates on home loans driven by a slump in demand in a year where interest rates have risen by 2.5%-3%.

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Home loans likely to fall in India by over 6% In 07-08: ASSOCHAM | INRnews

Mumbai, India, September 05, 2007 - Rising home loan rates have severely impacted the housing sector as their growth has fallen to 26.6% in 2006-07 from 29.1% in 2005-06 and in the absence of suitable corrective measures, housing loans growth will further slow down between 17-20% in current fiscal.

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August 17, 2007

ICICI Bank Home Loans to organize Home Utsav in Delhi | INRnews

Mumbai, India, August 17, 2007 - ICICI Bank Home Loans will be organizing ‘Property Maha Utsav’, a mega property exhibition from August 17 to 19, 2007 at Hotel Taj Palace in Delhi. The ‘Home Utsav’ will be open between 10 a.m. and 8 p.m. on all the days. ICICI Bank is bringing the top 30 builders of Delhi for the event and more than 4000 prime properties will be on display. A convention has also been organised on August 18 on  "Real Estate Housing & Finance: Trends, Tools and Opportunities", which will be addressed by eminent personalities, to discuss various issues concerning real estate development, finance and reforms.

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National Housing Bank guidelines for reverse mortgage loans | INRnews

Mumbai, India, August 17, 2007 - Senior Citizens are an increasing component of the Indian society and dependency in old age is increasing in the country. While on the one hand, there is significant increase in longevity and low mortality, on the other hand cost of good health care facilities is spiraling and there is little social security. Senior Citizens need a regular cashflow stream for supplementing pension/other income and addressing their financial needs. Secular increase in residential house prices has created considerable “home equity “wealth. For most Senior Citizens, the house is the largest component of their wealth.  Conceptually, Reverse Mortgage seeks to monetize the house as an asset and specifically the owner's equity in the house.

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July 23, 2007

Corporation Bank reduces home loan rates by a quarter percent | INRnews

Mumbai, India, July 23, 2007 - Karnataka-based Corporation Bank has cut interest rates on fresh floating home loan rates by 25  basis points.

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June 21, 2007

Financial Institutions look at reverse mortgage products | INRnews

Mumbai, June 21, 2007 - A whole host of financial institutions are looking seriously at entering the reverse mortgage segment. A new concept in India, the reverse mortgage product is essentially a loan provided to senior citizens by mortgaging their homes. Heirs can either repay the loan or forfeit the property.

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April 03, 2007

Banks raise home loan interest rates | INRnews

Mumbai, April 03, 2007 - Various banks including ICICI Bank, HDFC and PNB have increased their home loan rates. This follows the Reserve Bank of India's recent decision to hike the inter-bank short-term lending rate by 0.25% and the mandatory deposits banks are required to make with the RBI by 0.5%. The CRR increase will squeeze money out of the banking system by forcing banks to deposit an extra Rs 15,500 crore with RBI. Controlling inflation is the central bank’s top priority.

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March 02, 2007

National Housing Bank to provide guarantees for reverse mortgage | INRnews

Mumbai, India, March 02, 2007 - The National Housing Bank which had earlier prepared a reverse mortgage scheme after discussions with banks and housing finance companies is to offer guarantees to senior citizens to protect them from any default by their lenders on reverse mortgage payments.

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February 08, 2007

ICICI Bank increases home loan interest rates, PSU Banks don't | INRnews

Mumbai, India, February 08, 2007 - Leading private sector bank ICICI Bank has announced a rate increase of 1% for its floating home loan customers. It remains to be seen if other private sector banks follow suit or use this opportunity to gain share from ICICI Bank. Meanwhile, the Indian Finance Minister has exhorted public sector banks to keep home loan interest rates unchanged. After ICICI's increase, home loans rates of PSU banks are around 1-1.5% cheaper.

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February 06, 2007

Finance Minister asks banks to hold home loan interest rates | INRnews

New Delhi, India, February 06, 2007 - Indian Finance Minister P Chidambaram has asked all public sector banks to hold interest rates on home loans at the current levels. He also said that this has been agreed to by all banks.

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February 02, 2007

RBI raises provisioning requirement for the real estate sector to 2% | INRnews

Mumbai, India, February 02, 2007 - The third quarter review of annual statement on Monetary Policy for 2006-07 was a prudent attempt at reining in inflation and speculation while continuing to encourage the upbeat mood of the economy.

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January 30, 2007

ICICI Bank to get more stringent on property lending | INRnews

Mumbai, India, January 30, 2007 - ICICI Bank, a leading Indian bank, has indicated that it will slow down on property loans to the overheated housing sector, following a signal from the Reserve Bank of India, India's Central Bank.

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January 17, 2007

CREDAI to Organise its 'Second National Exhibition of Developers and Housing Finance Institutions' at New Delhi | INRnews

New Delhi, India, January 17, 2007 - Reaching out to approximately around 1,00,000 potential buyers, the Confederation of Real Estate Developers' Association of India (CREDAI) is planning to hold yet again the 2nd National Property expos in Delhi from 19th Jan, 20th Jan and 21st Jan after the phenomenal turnout and success of the earlier expos. It is being held at Pragati Maidan Hall No 12 A from 10 am – 7 pm on all three days.

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January 04, 2007

RBI seeks improved system for realistic valuation of properties | INRnews

Mumbai, January 04, 2006 - The Reserve Bank of India has written to all commercial banks asking them to put in place a system/procedure for realistic valuation of fixed assets and also for empanelment of valuers for the purpose. Specifically, RBI has asked that banks should have a Board approved policy in place for valuation of properties including collaterals accepted for their exposures.

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January 03, 2007

Dena Bank ties up with LIC to launch Group Mortgage Redemption Assurance Scheme | INRnews

Mumbai, Janary 3, 2006 - Dena Bank has announced that it has launched "DENA GRIHASWAMI SURAKSHA YOJANA", a Group Mortgage Redemption Assurance Scheme for its housing loan borrowers with a tie up with Life Insurance Corporation of India (LIC).

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January 02, 2007

ICICI Bank raise home loan interest rates | INRnews

Mumbai, January 02, 2006 - ICICI Bank, India's largest private sector bank, has raised home loan interest rates by half a percent across all tenures with effect from December 18. Other lenders have not yet followed suit.

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December 10, 2006

CRR hike may lead to increase in home loan interest rates | INRnews

Mumbai, December 10, 2006 - An expected Rs.13,500 crores is expected to be soaked up from the financial system with the RBI's 50 basis points CRR hike starting December 23. With a tight liquidity situation, experts indicate that it could be only a short while before banks tweak upwards lending rates.

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November 18, 2006

Reserve Bank of India asks banks to follow additional procedures on home loans | INRnews

Mumbai, November 18, 2006 : The Reserve Bank of India (RBI) yesterday issued a notification to banks to follow additional procedures while sanctioning housing loans. This follows a Delhi High Court order whereby banks are required to check whether the loan sought for is for authorized structure or an unauthorized structure and the Banks are required to obtain an undertaking on an affidavit from the parties seeking such loans that the building is constructed as per sanctioned building plans. The High Court has also directed that banks will need to ensure that the sanctioned building plans are attached with the undertaking.

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November 01, 2006

ICICI & Emirates Bank offer 100% Home Finance to NRIs in the Middle East | INRnews

Dubai, November 1, 2006 : ICICI & Emirates Bank has launched yet another exciting and valuable service to its customers by offering NRI’s- Non Resident Indians- the opportunity to avail of 100% home finance to buy their dream home in India.  meNRI Home Finance in India is a unique and innovative product, which is a combination of a Home Loan from ICICI Bank (70%) in India and a Personal Loan from Emirates Bank (30%) in the UAE.

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October 26, 2006

RBI study indicates risk of speculation in India housing market not significant | INRnews

Mumbai, October 26, 2006 : A Reserve Bank of India Occasional Paper "Identifying Asset Price Bubbles in the Housing Market in India" was published recently authored by Himanshu Joshi, a Director of the RBI Monetary Policy Department. The paper studies the impact of permanent shocks to housing prices attributed to monetary variables and income growth - and, in the process, attempts to identify speculative price bubbles in the housing market. The data suggests that the housing market in India at present remains "fairly well equilibrated if seen in terms of the proximity of the actual housing prices and the estimated long run equilibrium housing prices. This implies that the risk of speculation in the market is not yet materially significant".

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September 22, 2006

Interest rates on home loans ease

Mumbai, September 22, 2006: After almost two years of constant increase, home loan interest rates have started easing off. Punjab National Bank has just announced a reduction of 0.25% on floating rates and also a reduction in loan processing fees by 50% and waiver of documentation charges.

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August 30, 2006

Now in India - rural home loans

In a bid to galvanise rural economy and address the shortage of housing in rural areas the National Housing Board (NHB) has launched a new project. Titled Productive Housing in Rural Areas (PHRA), the project is in partnership with a non-governmental organisation or NGO called the Dhan Foundation. The NHB believes a partnership with other institutions will help provide both money and other assistance resulting in a multiplier effect.

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August 22, 2006

Dewan Housing Finance targets NRI customers in Dubai

Dewan Housing Finance Limited (DHFL) has opened its office in Dubai. Located at the Atrium Center, Bank Street, Bur Dubai, the company will provide housing loans to Non Residential Indians (NRI’s) based in UAE to purchase homes and plots in India.

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August 01, 2006

Home Loans get more expensive

Major Banks have started increasing lending rates by 0.25 to 0.5% following the RBI increase in short term interest rates.

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July 28, 2006

Home Loans in India to cost more

Home loans are very likely to cost more following the RBI rate hike earlier this week. RBI has increased its short term lending and borrowing rates by 0.25% while keeping long term rates unchanged.

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July 23, 2006

HDFC Chairman Parekh calls for housing issues to be dealt with effectively & efficiently

HDFC Chairman Deepak Parekh has said in the company's annual report that growth in the housing sector can be sustained only if certain basic issues are dealt with effectively & efficiently. In his Chairman's statement in the report, Parekh raises a clarion call for the need for Town Planning, Repeal of the urban land ceiling act, a need to increase FSI, Review of Central Environmental Clearanace and a rationalisation of taxation and rent control laws.

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May 13, 2006

Small loans account for the majority of home loans in India

Reserve Bank of India data indicates that the majority of the home loans (more than half) in India are in the Rs. 2-10 lakh range, followed by another 33% of loans in the Rs.10-25 lakh range.

In addition, there is also strong growth in borrowings of high amounts. Banks lent between Rs.50 lakh to Rs.25 crore as home loans to just 7,400 borrowers who borrowed a whopping Rs.8,600 crores. Another Rs.6,600 crores was lent to just 88 individual borrowers with an average loan size of Rs.75 crores.

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April 26, 2006

State Bank of India to hike home loan rates

State Bank of India may hike home loan rates by 25-50 basis points though no time frame has been decided as yet.

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April 23, 2006

National Housing Bank studies risk in the Indian housing finance market

The National Housing Bank has undertaken a study to understand the nature of risks endemic to the Indian primary housing finance market, in particular default risk and prepayment risk. The sample size for the study of Credit Risks was over 6,50,000 housing loans sanctioned from January 1988 to October 2004.

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