HDFC disburses Rs 2,800-cr low-cost loans under Central scheme

Mortgage major HDFC has disbursed Rs 2,800 crore loans to 14,290 home-buyers under the Pradhan Mantri Awas Yojna (Urban) so far, which entails a Central subsidy of Rs 302 crore.

The Modi government had launched the housing for all by 2022 in June 2015 and the disbursement is from that period.

While the lender has provided home loans worth Rs 1,728 crore under PMAW's credit-linked subsidy scheme (CLSS) to the economically weaker section (EWS) customers and low- income group (LIG), it has disbursed loans worth Rs 1,067 crore to 3,526 customers from the middle income group (MIG), it said in report today.

The EWS comprises people with an annual household income up to Rs 3 lakh, while LIG include those with income greater that Rs 3 lakh and up to Rs 6 lakh.

Government launched its flagship PMAY(U) scheme on June 25, 2015 to provide housing for all by 2022. Since then, it has taken several steps such as inclusion of the MIG category under CLSS, increasing the loan tenure to 20 years, extending the MIG scheme till March 2019, increasing in the carpet area of houses under the CLSS for MIG, etc, to increase the scope of PMAY.

It also announced in the Budget 2018 that about 31 lakh homes are to be built in urban areas in FY19, and 51 lakh in rural areas.

"This has renewed the interest of homebuyers in the real estate sector and allowed first-time home-buyers to avail more benefits to own a house," said Renu Sud Karnad, managing director at HDFC.

HDFC ltd home loan had disbursed 39 per cent of home loans in volume terms and 20 per cent in value terms to customers from the EWS and LIG segment during the nine months to December 2017, said the report.

The lender on an average has been approving 8,000 loans on a monthly basis to the EWS and LIG segments, with monthly average approvals at about Rs 1,300 crore, it added.

In value terms, home loans to the EWS and LIG segments grew 32 per cent and 39 per cent, respectively, during the April-December 2017 period.

The average home loan to the EWS and LIG segment stood at Rs 10.24 lakh and Rs 17.38 lakh, respectively.

Till date 4,452 towns have been notified as statutory towns under the housing for all mission and properties located in these towns are eligible for subsidy, according to the report.

Narendra Modi government gives big home loan boost to housing in India; demand set to soar

Cheaper loans should boost demand and help revive real estate sector; apply to slightly bigger homes as well.

The government on Thursday made loans cheaper even for slightly bigger homes bought by middle-income groups in a move that should boost demand and help kick-start the real estate sector. The pace of home purchases has tapered off sharply for several reasons; while buyers have been waiting for prices to come off, the roll-out of rules under Real Estate Regulatory Authority (RERA) in July has held back new launches. Demonetisation too is believed to have hurt home sales; the inventory of unsold apartments across India is estimated at close to Rs 6 lakh at the end of September. Keki Mistry, vice-chairman, HDFC, noted the lower interest for larger homes should spur purchases. However, the caveat that those already owning a property would not be eligible to a lower interest, Mistry felt, should be done away with as there were several buyers wanting a second home. The Cabinet on Thursday approved a proposal that will allow those with an annual income of up to Rs 12 lakh to buy or build a house of up to 1,200 sq ft; earlier the area was capped at 900 sq ft. Those with an annual income of up to Rs 18 lakh are now eligible for loans at a softer rate to buy or build a home covering 1,500 sq ft; this was 1,100 sq ft earlier. Purchases in the secondary market are also covered by the scheme.

PK Gupta, managing director, State Bank of India, said the new rules would encourage more purchases at a time when buying had slowed somewhat. Gagan Banga, vice-chairman and MD, Indiabulls Housing Finance, said given how buyers preferred slightly larger homes in the Tier-II and Tier-III cities, several potential buyers had not been able to take advantage of the soft loans. “We expect many of them will not use the opportunity to buy homes now,” Banga said, adding sales could see a spurt in cities such as Pune, Chandigarh, Ludhiana and some pockets in south India. Crisil Research wrote recently that demand for residential property was unlikely to revive in the next 12-18 months.

“Though capital values have been under pressure over the past few quarters, a significant chunk of supply in many micro markets remain unaffordable,” analysts at the ratings agency observed. The total outstandings of mortgages with banks at the end of September was 12.8% higher than those in September 16. This was slower than the increase in outstandings between September 2015 and September 2016, when they had grown 18%. Since demonetisation the pace moderated to a monthly average of 15%. That’s despite an effective asset price correction of around 5-10% in H12017. However, housing finance companies have, over the past year, disbursed at a fairly fast pace.

Earlier this year, the government had allowed buyers with an annual incomes of between Rs 6 lakh and Rs 18 lakh to borrow at concessional interest rates. Approximately 3.5 lakh homes of the registered 6.7 lakh apartments in Mumbai Metropolitan Region have not found buyers so far, according to data on the MahaRERA website. Experts say developers are looking for more affordable locations to make homes affordable. “Developers are building smaller apartments because compact two-bedroom homes are selling faster at the moment. The interest subsidy for slightly bigger homes will help clear off inventory from older projects,” said Rohit Gera, MD, Gera Developments.

SBI holds home loan customer meeting

State Bank of India held a home loan customer connect meeting here on Friday to reiterate that the bank was always at their service.

SBI assistant general managers Haritha Purnima (region-I) and Sekhar Rao (home loan sales team) attended.

Retail assets central processing centre (RACPC)-1 AGM Ch. Narayana Rao in the inaugural address thanked the customers for patronising the bank for a long time and emphasised that for fast and quick sanction of home loans, they were working till late hours.

Ms. Purnima clarified the doubts raised by customers. She explained about the home top-up loan and informed about the discounts offered by the bank in documentation and processing charges during the festival season.

Mr. Sekhar said they had formed exclusive sales team consisting of experienced staff for taking the bank products to the doorsteps of customers.

The customers, who attended the meeting, shared their experiences with the bank and made certain suggestions on how to improve their service.

Among others, chief manager (maintenance) K.N.V. Surendra, CM (sanctions) Basheera Begum and other managers Nageswara Rao, Ramana Rao, Sai Prasad and Swati were present.

Govt plans higher interest subsidy for economically weaker section in Home Loans

In a move to ensure every household has a roof over their heads by 2022, the housing ministry is likely to increase interest subsidy for flats under economically weaker section (EWS) and low income group (LIG).

Sources said that the proposal has been formulated based on the recommendation of an informal group of ministers, which looked into the 'Housing for All' scheme. The fresh proposal would be placed before the Cabinet for its approval.

TOI has learnt that one of the ministers in the group has even suggested that there should be 0% interest for people falling under the category of economically weaker section. He has also suggested that the cost of such flats should not be more than Rs 5 lakh in any urban area so that people across all sections can own a house.

One of the major components of the ambitious Housing for All scheme is to construct at least two crore affordable housing in urban areas. The cost of such flats is estimated to be around Rs 6.5 and Rs 7.5 lakh. There are also provisions including interest subvention scheme in the housing sector that will meet part of the buyers' home loan burden.

Providing two crore affordable housing is likely to involve investment of about Rs 13 lakh crore in the next seven years.

Sources said that Cabinet clearance of the urban component of Housing for All is crucial. "We cannot start work until the proposal is approved by the Cabinet. We are losing crucial time since we have to meet the target by 2022," said a source.

Source: http://timesofindia.indiatimes.com

SBI won't make unique home-loan provisioning

With the finance ministry’s economic survey backing State Bank of India’s (SBI) controversial yet popular home loan scheme, bank chairman O P Bhatt said SBI will not have to make any special provisioning for such loans.
SBI home loans, which offer a lower interest rate in the initial years and rate increases in the later years, were termed teaser loans by the Reserve Bank of India (RBI). RBI is not comfortable with banks offering such products and had increased the standard provisioning requirement for such loans by five times, to two per cent in October.
The increase in provisioning would have put a huge burden on SBI, as most of its home loans were disbursed after February 2009, when the scheme was launched. After RBI increased the provisioning requirement, SBI has tweaked the scheme by offering a fixed discount in the initial years, instead of charging a fixed rate. All floating-rate home loans will be linked to the bank’s base rate.
“The economic survey has said it is far better than I ever said it before. They have sort of reinforced and reiterated what we have said and I am glad that it has happened. We did not ask for an exception, we are totally compliant with what the regulator wants,” Bhatt said today.
Bhatt said SBI’s loans cannot be termed as teaser loans, a view supported by the finance ministry, and hence no extra provisioning is required.
“It is not about compliance, it is about clarity on the nature of the product that RBI labelled teaser loans. The government has called it terraced loans. According to the definition by RBI, we do not have a single teaser loan. In our opinion, we will not have to make any special provision,” Bhatt said.
On interest rates, the SBI chairman said interest rates are expected to go up, but not more than 25-50 bps. SBI, which raised its rates last month, is not contemplating a rise in both deposit and lending rates immediately, he said. Bhatt also said the bank was comfortable on liquidity.
“We have three per cent excess SLR currently. We have enough liquidity in SBI, partly because retail deposits grew at a good pace, and partly because we picked up bulk deposits quite early and also because of the response we got on the retail bond issue,” Bhatt said.
On the proposed rights issue, Bhatt said it may happen in the early part of the next financial year.

Fixed rates loans the best option

The RBI increased the repo and reverse repo, the rates at which it lends to and borrows short-term money from banks, by 25 basis points. It hiked the cash reserve ratio (CRR), the portion of money that commercial banks deposit with the central bank, by an identical percentage. The move was to draw out Rs 12,500 crores from the system. The hike in the repo and reverse repo rates, to 5.25 and 3.75 percent respectively, will raise the cost of funds for lenders.
At that time, borrowers could breathe easy as there was enough liquidity in the system. The policy actions resulted in the cost of funds going up which was absorbed by the banking system. Moreover, the RBI had said that it will continue to monitor macroeconomic conditions, particularly the price situation, closely and take further action as warranted. The three major factors that could have a bearing on inflation are uncertain monsoons, volatile prices of crude oil in the international markets and demand pressures.
Presently, all these factors are uncertain. The global factors including the euro crisis, volatility in the stock markets, Greece debt crisis, oil prices etc are all causes of concern. At home, the inflation rate hasn't really reversed. The economic growth is contingent to a large extent on the monsoons that are not yet very certain.
All these micro and macro indicators indicate that the interest rates may again increase in the coming months. A bad monsoon, global cues, and spiralling inflation, can push up interest rates again.
Realty attractive
Following the global slowdown the property prices went through a correction. Now, as the economy has staged a recovery, the prices too are on an upward trend. There is more job security and homebuyers are back in the market.
Regardless of the interest rate movements, this is a good time for those planning to buy property to make a move. The question is which option to go for between fixed and floating rates.
Fixed rate ideal
Those planning to purchase a house may do well to lock-in their borrowing now. They should go in for a fixed rate loan. As such, there is no concept of fixed rate loans for the entire tenure of the home loan. Nowadays, the term fixed rate loan is relative. The interest rate is generally fixed for only two or three years, after which it is subject to revision, depending on the market rates of interest. Yet, one should lock into a fixed rate loan.
Some analysts indicate that home loan interest rates may rise in the near future. There are indicators to this effect. The high inflation rate of around 10 percent could affect the stable macroeconomic and interest rate environment here.

Steps For choosing a safe, beneficial home loan

Owning a home is a dream of every person. Purchasing a home may mean different things to different people. To a middle- class person, it is an achievement of a life-time, while for the affluent it may represent their arrival on the social stage.
Nevertheless, whatever one’s means, banks and housing finance companies have consistently played a pivotal role in fulfilling this basic need? For a safe and beneficial home loan, proper awareness over the products, policies, terms and conditions of the bank is most important as ignorance may result in wrong decisions having a lifelong impact.
WHILE CHOOSING A HOME LOAN MANY QUESTIONS ARISE
How do I go about obtaining a loan?
How do I find a property that suits my budget?
What will be the EMI? How is it calculated?
What are the eligibility conditions for a home loan?
What are the home loan rates offered by Banks?
These are basic questions that need to be answered! Obtaining a home loan may seem very cumbersome but a systematic approach will allow you to be a proud owner of your home.
CHOOSING THE LENDER

First before one sets out on the journey to buy a home one needs a pre-qualified home loan. Without this in hand, it isn’t recommended you begin your search for a new house. The more you hunt for a home without funds, the greater will be the stress. The first step towards your loan is choosing the besthousing finance companies (HFC) which can guide you through the entire procedure.
Various points need to be kept in mind when discussing and finalising a home loan - interest rates, application processing fee (generally around 0.50% to 1.00% of total loan amount), legal charges, pre-payment charges, valuation fees, and other hidden costs.
WHILE CHOOSING THE BEST OPTION COMPARE FOR THE FOLLOWING IN THE COMPETITION

Check the rate of interest being charged.
Check the processing fees being charged.
Check the movement of the benchmark rate over the last two years.
Check the partial and prepayment fee clause.
Consolidate debt so that not more than 50% of the monthly income is going into servicing debt.
THE PROCESS

Once you have identified the right institution, you will need to fill some forms: an application form, Know Your Customer form (KYC), age proof, and submit employment and Income details to the financial institution. The application is processed on the basis of income papers and KYC documents of the customer.
After this the Bank will do a due diligence to verify the authenticity of the borrower and check the veracity of the income papers. Once the due diligence is over, the Bank will assess the repayment capacity of the applicant and then sanction the loan on the basis of his/her credit worthiness.
On the basis of the sanctioned loan, it becomes easier for the applicant to identify the property. Later, if the applicant wishes to downsize the loan sanctioned, it can be done by simply intimating the same to the bank.
SELECTING THE RIGHT PROPERTY

Choosing the right property depends on various factors like budget, area, amenities, location, proximity to workplace , convenience. The importance you assign to each of these would depend on one’s profile, income and age.
A young executive, for e.g.,  would give importance to amenities, proximity, convenience, area and location. A senior level executive would prefer area, location, amenities, convenience, and proximity keeping in mind that the area where the house is located is a symbol of his social status.
A good real estate consultant who understands the wishlist can speed up the process.
TAX IMPLICATIONS

Government of India has provided various tax benefits on home loans.
The interest of up to Rs 1.50 lac paid on home loan on self-occupied property during the financial year can be availed by the borrower as a deduction from his/her income for that year. In addition, the borrower also gets an exemption within overall limit of Rs.1 lac under Section 80C of Income Tax Act for Principal amount repaid by him/her during the financial year.
The interest paid by the borrower on the home loan, till completion of construction of the property, is allowed as deduction from his/her income, in equal installments for the next five years within the applicable limit.
INTEREST RATES AND FORCED MAJEURE CLAUSE

Almost all banks offer home loans with - both fixed and floating rates of interest. As a thumb rule, the customer should go for floating rates when the rates are expected to fall and fixed rates when they are expected to rise in future. However you must realise that there is something called as Forced Majeure Clause. The Force Majeure Clause enables the lender to undertake appropriate modifications in the interest rates on home loans they sanction to their borrowers. This situation applies even if the borrower has opted for a home loan at a fixed interest rate.
So, while you read your home loan agreement papers, you can spot statement like this Provided further that from time to time, the bank may in its sole discretion alter the rate of interest suitably and prospectively on account of change in the internal policies or if unforeseen or extraordinary changes in the money market conditions take place during the period of the agreement.
There is a lot of awareness out there in the market and customers are increasingly examining the various aspects vs - vs home loans. Having said this, one should not get swayed by the lucrative interest rates and other such schemes being offered. Buying a home is definitely a dream comes true and home loan fulfils that dream. I will advise you to spend considerable time with your banker in helping you make a fair decision so that your dream home always has pleasant memories. Click Here for Apply Home Loan

Home loans and Property Progress are complementary to each other

Home loan providers are now insisting on construction-linked disbursal of funds to new projects, as they look to make developers more accountable after getting stuck in several stalled projects.

A number of developers have either stopped construction midway or slowed down due to shortage of funds and poor sales in 2008 and the first half of 2009. Lending institutions expect the move to help them monitor the progress of construction and make developers accountable, said a senior executive with a public sector bank.

“Buyers in such projects are in a difficult situation. They have to pay monthly installments towards the loan without getting the possession of house. They also end up shelling out monthly rents during the period,” he said, requesting anonymity.

HDFC home loan, one of the largest lenders in the home loan segment, has discontinued the practice of up front disbursals and linked the flow of funds to progress of construction, said another industry executive who asked not to be named. A spokesman for HDFC declined to comment.

Developers initially used to offer homebuyers up to 10% discount on up front payment. These developers subsequently diverted substantial part of funds to other projects. The delay in completion of work left buyers in a lurch. “There is a high probability of default by such borrowers,” said the CEO of a leading housing finance company.

In construction-linked payment, the Housing Finance Companies or banks do not release the funds up front. They release of around 30% funds initially and the rest is disbursed as per the progress of projects. “In such cases since the exposures are not full and the monthly repayment obligation for borrowers will be lower,” said another banker.

“Many developers have now changed the payment schedule to construction-linked as against timebound payment. This is good for the industry,” DLF group executive director Rajeev Talwar said. However, banks and home finance companies should release 30-35% of the funds towards the lands and development cost, Mr Talwar said.

The lenders have also become more conservative in disbursal of loans. In a volatile real estate market, they offer lower valuations for the property against which they disburse the funds.

“Till 2007 when the home prices were escalating, lenders’ valuations were normally higher than the actual price. Currently, the evaluators of these banks normally value to property at 5-10% lower than the actual cost. As a result, the borrowers need to fork out more to bridge the gap,” said an industry executive.

According to industry estimates, disbursements of home loan in the organised system of financing in the first six months of the current fiscal has been around Rs 60,000 crore. In 2008-09, it touched Rs 1,00,000 crore approximately, while in 2007-08 the amount was around Rs 1,30,000 crore.

Cheap home loans won't stay for long

Recent home loan rate cuts by banks and financial institutions may not be there for long, as it would lead to increased number of defaults, according to experts. In fact, the lowered interest rates will not be beneficial for the Indian scenario in the longer run.
There are various reasons for this belief. First, there is an inverse correlation between home loan rates and property demand.
"Reduction in home loan rates will always lead to higher demand for properties. In 2006-07, when home loan rates were between 7.5-8 per cent, the property market was at its peak. With higher volumes come higher defaults and delinquencies. In the long term, lower rates will be beneficial for the real estate market but the loan provider needs to be careful in checking the worthiness of the loan taker."
"Sustained period of low interest rates become a fundamental necessity, if India has to achieve a higher home ownership among its populace." He added, "However, Indian banks unlike their US counterparts should not use low upfront interest rates as tools to make home buyers buy into intrinsically unaffordable properties. That would do more harm than good, as we all know by now from the US credit crisis." Therefore, those taking home loans at reduced or special floating rate of interest from banks should remain cautious and prepared for a possible increase of rates.

Pick up in realty urges banks to shift to home loans

In India, the ratio of mortgage to gross domestic product (GDP) is low at 7 percent indicating a huge potential in the housing sector in the coming years. This ratio stands at 12 percent for China, 41percent for Hong Kong and at least 80 percent for most developed countries.
While housing finance companies (HFCs), regulated by National Housing Board, were predominantly catering to the real estate sector, banks too have started increasing their exposure in the sector.
This is evident from the fact that market share of HFCs decreased from nearly 65 percent in 2001 to 55 percent today. Banks, on the other hand have been consistently increasing their share, thus intensifying the competition.
The pick up in real estate prices coupled with various low interest schemes have resulted in surge in real estate sector in the past few months.
SBI announced a special home loan scheme in February and was followed by other government -owned and private banks to ensure their presence in the sector. The housing sector has witnessed significant surge in volumes, especially in the "affordable housing sector".
Housing Finance Companies feel that increasing share of banks' in the home loan segment is a temporary phenomenon. They say that banks are likely to come across asset-liability mismatch as these loans have a long gestation period. Further, these loans are a zero-sum game in the initial period due to lower home loan interest rates offered. HFCs, on the other hand, typically, raise money that match their requirements and thus reduce the asset-liability mismatch.

Axis Bank removes penalty on home loan pre-payment

http://deal4loans.haimachan.com/

Bank offers 25-year tenure, flexible plans to raise loan offtake

Axis Bank, the third largest private sector bank by assets, has taken the lead in scrapping this practice on home loan. The bank has decided not to charge pre-payment penalties to its home loans even when customers shift a loan to a competing bank.
Others, including State Bank of India, Housing Development Finance Corporation and ICICI Bank impose pre-payment penalties when any of their customers seeks to refinance a home loan through fresh loans at lower Home Loan Interest Rates.
Axis Bank Home Loan is the only Home Loan that does not include any pre-payment penalty charge from customers either for part pre-payment or full pre-payment.
SBI and Punjab National Bank have no pre-payment charges if the customer prepays from own resources or if half of the loan is repaid. But if the pre-payment is to be refinanced by any other institution or bank, the customer has to pay 2 per cent penalty on the money paid.
“At Axis Bank, we believe customers have the right to exercise their choice to shift if they find a rate advantage,” said Manju Srivatsa, president of retail banking at Axis Bank.
Axis has close to 50 retail asset centres, which are specialised units dedicated to processing retail loan applications ensuring quicker turnaround time.
Though a small player in the market, Axis Bank's new CEO Shikha Sharma is bullish about growing the bank at a pace it has never seen before. The retail business is expected to fuel a substantial part of the bank’s growth.
The bank had a home loan book of Rs 12,049 crore at the end of the second quarter. It plans to grow its market share through customer-friendly home loan products with a variety of repayment options, like extended tenures, lower rates of interest and quick processing time.
HDFC Home Loan allows pre-payment of only 25 per cent of the opening balance at a time without any charge. For any amount over and above that, there is a pre-payment penalty of 2 per cent.
ICICI Home Finance allows pre-payment of a loan if 12 equated monthly installments (EMI) are kept as outstanding. In case of complete closure of the loan, the bank charges a penalty of 2 per cent of the amount prepaid.
HDFC managing director Renu Karnad Sud said, “Instead of expanding the home loan market, banks are only refinancing through teaser schemes. Pre-payment penalty is charged by banks and institutions because we have a cost to our funds and if we pre-pay, we have to pay a penalty to our lenders. We do not want to penalise customers. We only discourage them from borrowing from other banks to prepay us.”
Axis Bank also has a longer repayment period of 25 years instead of 20 years most players have today. The bank also has a bouquet of innovative home loan products targeted at different category of customers.
For example, it has an extended tenure loan targeted at the young salaried group, who aspire to buy a home with smaller EMIs and a longer repayment period.
“This is to encourage youngsters who have begun earning to buy an aspirational property. This category does not want a huge EMI outgo, but does not mind an extended tenure. The average loan size is Rs 12 to 15 lakh and these schemes have helped us maintain a year-on-year growth of 25 to 30 per cent,” said Srivatsa.
Axis Bank's ‘Step Down home loan’ targets families where parents are nearing retirement and children ha­ve just started earning. The loan is structured in such a way so as to offer higher EMIs at the start and lower installments at a later stage.
These are all floating rate loans with an interest rate of 8.75 per cent for loans up to Rs 30 lakh and 9.25 per cent for loans above Rs 30 lakh.
Axis Bank also has a special home loan scheme that offers an interest rare of 8 per cent for the first year and floating rate for the remaining tenure of the loan where it competes with SBI Home Loan, the pioneer of the 8 per cent home loan scheme.
At present rates, the interest rates applicable for customers from the second year will be 8.75 per cent for loans up to Rs 30 lakh and 9.25 per cent for loans above Rs 30 lakh.

Barclays Bank Home Loans IndiaBarclays Bank Home Loans India Vol1

One of the leading bank Barclays has also come up with the Home loan product with its distinguished features offering home loans for various purposes.
Barclays provides home loans for purchasing a ready built flats/houses, constructing a home, refinancing existing loans, residential plot with lesser interest rates & hassle free documentation.

The best way to shape up the house of your own dream is a Home loan. Home Loan in India has now become easier. Also now a days, enticing advertisements & easy installment plans pulls you to avail a loan. You can acquire a house of your own with the help of different banks & housing finance companies. Banks & Housing Finance gives end to end solutions under one roof. The burdensome process of getting a home loan has been simplified & effortlessly you can get it approved for yourself.
Barclays Bank is also one of the leading bank which provide Home loans in India with its attractive features & benefits.
Barclays Bank is a PLC (Public Limited Company). It has a subsidiary called Barclays Investments & Loans (India) Ltd. And the trade name given to Barclays bank subsidiary is Barclays Finance.
Barclays Bank offer Home loans for various purposes:

1. Construction of home
Any individual wants to construct a home can apply individually or jointly for Barclays Finance Home loan.
2. Purchasing a ready built house/flat
Barclays bank also provide housing loan to purchase a prepared flats or built houses.
3. Residential plot
For your dream house you can avail a loan to purchase a plot.
4. Refinancing existing loans availed from other housing finance companies
Barclays bank also facilitates to refinance your existing loan running from other banks or housing finance companies.

Features & Benefits:

Attractive Home loan rates of interest.
Fixed & Floating home loan rates options are available.
Hassle free documentation.
Tenure up to 25 years.
Barclays bank funds up to 80% of the property value.
Balance transfer with Top Up facility.
End to End solutions under one roof.
10 days sanction period.
Personalized Doorstep Services.

Barclays Bank Home Loans India Vol2

Eligibility Criteria fo Home Loan:
Following are eligible to apply for Barclays Home Loan:
Salaried Individuals include Salaried Doctors, CAs, employees of select Public and Private limited companies, Government Sector employees including public sector undertakings and central, state and local bodies
Self Employed Professionals include self - employed Doctors, Chartered Accountants, Engineers, MBA Consultants, Architects and Company Secretaries.
Self Employed Individuals include self-employed - Sole proprietors, Partners & Directors in the Business of Manufacturing, Trading or Services.
NRIs include Non Resident Indians.

Salaried:
Minimum gross income of applicant: Rs.18,000/- per month
Minimum age of applicant: 23 years
Maximum age of applicant: 58 years

Self-Employed:
Minimum ITR of applicant: Rs. 2,00,000/-
Minimum age of applicant: 23 years
Maximum age of applicant: 52 years

Income available for making EMI’s

Salaried: 60% of gross monthly salary is considered.
Self-Employed: 65% of net profit is considered.

Documentation For Home Loan:

For Sanction Process

1.Identity Proof:

Passport/ driving license/PAN card/ Photo credit card (with embossed Signature and last two months statement)/ banker’s sign verification.

2. Age Proof:

PAN Card/ Passport/ Driving School leaving certificate/ Voter’s card/BirthCertificate/ LIC policy (only for age Proof).

3. Adress Proof: Passport/ Telephone bill (BSNL/MTNL)/ Electricity bill/ Title deed of property/Rental agreement/Driving license/ Election ID/Photo-credit card (with last two month statements)

4. Income Proof:

1. Form 16 for the financial year 2008 (with company seal or digital signature)
2. Original hard copy of latest 3 months pay slips with company seal or logo (Soft copy can be submitted initially for processing of the application)
3. Copy of the latest CTC
4. If the current service is less than 2 years, relieving letter of previous company and latest appointment letter
5. Banking History:
Original hard copy of latest 6 months bank statement.
For Disbursement Process

List of documents for fresh property
1. Property legal Documents.
2. Technical Valuation of property [Bank use only]
3.Original Agreement with Index II & Registration Receipt.
4. Own Contribution Receipts with bank reflections.
5. NOC Letter [from builder]
6.Demand Letter [from builder]
7.OCR Paid Bank Reflection.

Barclays Bank Home Loans India Vol3

List of documents for APF projects
1. Draft copy of flat booking agreement
2. Development Agreement between landowner and builder
3. Power of Attorney executed by the landowner in favour of the developer.
4. NA Order
5. ULC 8 (4) order or Sec 20 exemption order
6. Property Extract / 7/12 Extract in the name of the landowner
7. Detailed Title Report / Search report of Builders Advocate
8. Commencement certificate by the concerned authority ( PMC / PCMC )
9. Certified Sanctioned Plan copy
10. Mutation entries
11. Partnership deed if any
12. C F Declaration
13. Public Notice and no objection certificate of the advocate
14. NOC from builder
15. Authority letter to sign on behalf builder
16. Deed of Declaration on builder

List of documents for NRI Loan Sanction

1. One latest photograph ( SELF & CO-APPLICANT).
2. Identity Proof (pan card or passport).
3. Address Proof of Abroad [On Company Letter head]
4. Visa Stamped Passport(Xerox)
5. Appointment Letter and Latest Contract Letter(if any).
6. Work Permit.
7. 3 Months salary slip.
8. TAX returns of UK/US.
9. Bank Statement of last six month for NRE and NRO Account showing 6 salary credits .
10.Power Of Attorney Duly Executed with Indian Embassy(IN CASE U ARE STAYING PRESENTLY IN UK otherwise kindly provide the notarized copy)
11.Email confirmation from your HR department regarding your job confirmation on Company Profile.
12.Degree Certificate.
13.One Processing Fees Cheque.

List of Documents for Resale Property

1. Draft Copy of “Agreement To Sale”.
2. Draft Copy of “Deed of Assignment”.
3. 7/12 Extract
4. N.A. Order
5. ULC Order
6. Society Registration Certificate.
7. Commencement Certificate.
8. Completion Certificate.

Barclays Bank Home Loans India Vol4

List of Documents for Plot Loan & Construction Loan
1. Development agreement between landowner & builder.
2. Power of attorney executed by the landowner in favour of the developer.
3. NA Order
4. ULC 8(4) order Or Sec 20 exemption order
5. Property Extract / 7/12 extract in the name of the land owner
6. Estimates from Architect
7. Layout sanction plan copy
8. sale deed of the borrower
9. Commencement certificate
10. The lease deed in case of the lease hold property
11. Latest search and title report
12. Sanction building plan copy

List of Documents for Vender Balance Transfer

1. Copy agreement to sale between builder & purchaser.
2. Draft copy of agreement to sale vendor and purchaser
3. Draft copy of deed of assignment between vendor and purchaser
4. Development agreement between landowner and builder
5. Power of Attorney executed by the landowner in favor of the developer.
6. NA Order
7. ULC 8(4) order or sec 20 exemption order
8. Property Extract / 7/12 extract in the name of the landowner
9. Commencement Certificate by the concerned authority ( PMC / PCMC )
10. Sanction plan copy
11. Latest PMC Tax Paid Receipt
12. Society Registration Certificate
13. Society Share Certificate
14. Completion Certificate
15. List of Document from Bank
16. Previous chain agreement
17. 14 Title search report.