idbi gives news ways for funding your home

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IDBI GIVES NEW WAYS FOR FUNDING YOUR HOME

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Page 1: IDBI gives news ways for funding your home

IDBI GIVES NEW WAYS FOR FUNDING YOUR HOME

Page 2: IDBI gives news ways for funding your home

Raj Kumar Bansal, executive director, IDBI Bank Ltd., shares with Vijay Pandya the initiatives being taken to promote housing.

Page 3: IDBI gives news ways for funding your home

What financial assistance does IDBI Bank provide for housing?

One can avail loan from IDBI Bank, for constructing a house, purchase of ready built house/ flat or re-sale flat, balance transfers, purchase of plot and construction, renovation/ extension of houses/ flats, loan against residential and commercial properties purchased.

Page 4: IDBI gives news ways for funding your home

Who can apply for home loan?

We offer loans to salaried individuals, self employed professionals or businessmen and NRIs.

Page 5: IDBI gives news ways for funding your home

What are the main advantages of IDBI Bank home loans?

•Maximum funding as permissible under RBI guidelines

•Flexibility of choosing between Floating or Fixed interest rate

•Attractive rate of interest

•Interest charging on daily reducing balance

•Personalized doorstep service

•Simple documentation

•Legal and technical assistance

•Balance transfer facility

•Reassessment and adjustment of applicant’s loan eligibility in case of change of income and residence status

•Low monthly outgo: Equated Monthly Instalment (EMI) is lower because interest is calculated on a daily reducing balance.

Page 6: IDBI gives news ways for funding your home

•Pre approved properties: The bank has a system of pre approving the properties via Advance Payment Facility (APF) & Advance Disbursement Facility (ADF) available thereby offering faster approvals in select cases.

•Balance transfer: Home loan product also has the option of balance transfer of existing loans from other banks or housing financial companies, as well as top-up options.

•Flexible repayment plan: Loan repayment options are structured to suit individual requirements. For instance, one can part pay or foreclose the loan account under floating interest rate scheme without penal charges.

Page 7: IDBI gives news ways for funding your home

Does the Bank have any flexible repayment home loan product?

Home loan Interest Saver product provides the facility of linking home loan account with the Easy Access Current Account (RCEAZ). The interest liability of the borrower on home loan comes down if the operative current account has surplus balance. Borrower is allowed to withdraw or deposit funds from his operative current account as and when required. Interest on Home loan will be calculated on outstanding loan minus balance in the current account based on daily basis.

Page 8: IDBI gives news ways for funding your home

What are other linked products?

We offer Loan Against Property, Loan Against Rent Receivables, Reverse Mortgage Loan, Loan Against Property Overdraft, Loan Against Commercial Property Purchase and Turnover Based Loan (Home loan and Mortgage Loan) for self employed professionals and businessmen. The Bank recently reduced rate of interest on Loan against commercial property purchase in line with market rates.

Page 9: IDBI gives news ways for funding your home

What is loan repayment tenure?

Tenure of a home loan can be up to 20 years for a resident individual (salaried and self employed professional) whereas for self employed (resident Indian) and NRIs (salaried) maximum tenure is 15 years.

Page 10: IDBI gives news ways for funding your home

What is maximum loan amount?

One can get a loan of minimum Rs2 lakh to maximum Rs5 crore. Normally, loan can be sanctioned for a maximum of 80% of the property value. However, loans up to 20 lakh would be eligible for 90% of property value. Quantum of loan is determined based on the repayment capacity of the customer.

Page 11: IDBI gives news ways for funding your home

Does the bank provide insurance cover to borrowers?

The bank provides insurance premium funding for life insurance/home insurance for its borrowers.

Page 12: IDBI gives news ways for funding your home

What are documents required?

Following documents required for calculating loan eligibility:

Salaried Individuals: 6 months Bank Statement and 3 month Salary Slips & Form 16. The minimum income of the applicant should be Rs15000 per month.Self-Employed Professional and Non Professional category: Last 6 month bank statement of savings account and business bank account. Last 2 years income tax returns, balance sheet, profit & loss account.

Page 13: IDBI gives news ways for funding your home

What is the security of the loan?

Primary Security for the loan is mortgage of the property to be financed, normally by way of deposit of the title deeds. The collateral security as may be necessary in some cases depending on the profile of the customer.

Page 14: IDBI gives news ways for funding your home

What are tax benefits available?

A maximum deduction of Rs1,50,000 on your income towards interest paid on your home loans u/s 24 is available. Further a maximum deduction of Rs1,00,000 on the principal repaid u/s 80 C can be claimed by the applicants.

Page 15: IDBI gives news ways for funding your home

What about foreclosure or prepayment?

Prepayment/ foreclosure charges are not payable on floating interest rate loans. However, prepayment fees of 2% on principal outstanding will be levied in case of fixed rate loans and plot loans.

Page 16: IDBI gives news ways for funding your home

Who can be a co-applicant?

The applicant can include spouse/ parents/ children as a co-applicant for the home loan and whose income can be included for calculating the eligible loan amount. Further, in case there are any other co-owners, they also need to be co-applicants.

Page 17: IDBI gives news ways for funding your home

How is loan repayment done?

The loan amount is repayable over the tenure of the loan by way of Equated Monthly Instalments. The EMI starts after the full disbursement of the loan. The customer pays simple interest on the part disbursed amount till final disbursement. To further the cause of green initiative, the repayment is to be made only through Standing Instruction (SI) or Electronic clearing System (ECS).

Page 18: IDBI gives news ways for funding your home

How does floating rate change?

The floating rate of interest of home loans is linked to Base Rate (BR) of the Bank. BR is the benchmark rate fixed by the Bank, after taking into consideration of various components of cost of funds and margin. The same is subject to change from time to time as per the changes in monetary conditions.

Page 19: IDBI gives news ways for funding your home

What of technological changes?

Soon the bank would be introducing online loan application for home loans through our website. Existing clientele has the facility to download Retail Loan Statements and Interest Certificates through our website. SMS alerts intimating the customers their due date for EMI payment amount due as also acknowledgment of payment made has already been introduced. As per the Green Initiative of Government of India, bank has initiated steps to encourage payment through ECS mode of payment.

Page 20: IDBI gives news ways for funding your home

What is the current network of the bank in terms of home loans?

In addition to the network of 985 branches, the bank has 72 Retail Asset Centres dedicated to handle all retail loans.

Page 21: IDBI gives news ways for funding your home

http://www.youtube.com/idbibank

http://www.facebook.com/idbibank

http://www.twitter.com/idbi_bank

https://plus.google.com/+IDBIBank

https://in.linkedin.com/company/idbi-bank

Thank You

Source: http://www.dnaindia.com/money/report-idbi-gives-news-ways-for-funding-your-home-1720599