If you took a home loan between April 2016 and September 2019, it is likely to be linked to the marginal cost of funds-based lending rate (MCLR) – banks’ internal benchmark. If your loan is even older, it is likely to be pegged to the Base Rate, which is also an internal metric to price home loans. Existing home loan borrowers’ long-standing grievance has been that lenders are quick to increase rates when the RBI increases its policy rates, but tend to drag their feet when rates head south. Echoing such borrowers’ sentiments, an RBI-constituted Internal Study Group pointed out that internal benchmarking regimes had failed to effectively deliver transmission of monetary policy. It, therefore, recommended a shift to an external benchmarking regime. … [Read more...] about Switch to repo-linked home loans in COVID times, save on EMIs
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NEW DELHI: The RBI's announcement is good news for home loan borrowers with a secure income, as interest rates in this category will come down by 40 basis points (100bps equal 1 percentage point) to around 7%. This is the lowest level in over 15 years. Also, borrowers who are facing income uncertainty because of the Covid-19 lockdown can avail of an additional three-month moratorium to get their finances in order. Those borrowers who have not availed of a moratorium so far but are now facing income pressure can still defer their repayments for three months. For a loan of Rs 30 lakh with a remaining maturity of 15 years, the net additional interest would be approximately Rs 2.34 lakh — equal to eight EMIs. A part of this burden could come down because of the reduction in interest rates. For existing borrowers, SBI’s interest rates on home loan up to Rs 30 lakh will automatically come down to 7% from the existing 7.4%, on loan between Rs 30 lakh and Rs 75 lakh to 7.25% from … [Read more...] about Home loan rates set to dip to 15-year low, EMIs to fall
Giving more breathing room to borrowers repaying loans, the Reserve Bank of India (RBI) today announced an extension of the previously announced three-month loan EMI moratorium by another 3 months to August 31, 2020. The central bank, in March had announced a three-month EMI holiday from March 1, 2020, till May 31, 2020 on all term loan repayments like auto, home, personal loan EMIs and so on. This extension is especially a big relief for home loan borrowers facing a cash crunch due to the nationwide lockdown and its associated adverse financial impact on the economy. So, if you are a home loan borrower who opts to avail of the moratorium extension by 3 months and thereby take a total moratorium of six months, this is how it will impact your EMI schedule and total outgo on the loan amount. Repayment schedule If you opt for the moratorium extension, you need not pay the EMIs for 6 months i.e. March, April, May, June, July and August. However, this does not mean that the six months' … [Read more...] about RBI allows 3 month extension of loan EMI moratorium: Should you opt for it?
As an added measure, lenders are also offering a moratorium period on these personal loans. This will provide some breathing space for borrowers, at least for a few months, during which they would expect things to normalize. But what shouldn’t be forgotten is that the moratorium isn’t an interest or EMI waiver. Interest continues to accrue and gets added to the overall repayment costs of these personal loans. … [Read more...] about Avoid low-interest COVID-19 personal loans, unless strapped for cash
A borrower can provide National Savings Certificates (NSCs) as security to the lending institution or bank that has provided a loan. In order to do this, the certificates held by the borrower are required to be transferred to the lending institution or bank by following the following procedure. 1. Form Form NC 41 must be filled up by the borrower and submitted to the post office. This form can be obtained at the post office or downloaded from http://www.indiapost.gov.in/Forms.aspx. The form must be signed by the pledger and pledgee. The application must include original certificates that are to be pledged. 2. Approved pledgees Pledge of NSCs can be made only to approved pledgees under the relevant post office rules. Such a pledge can be made in favour of the Reserve Bank of India, scheduled banks, co-operative society or banks, a corporation or the government or local authority. 3. Process The post office will scrutinise and verify the application. If in order, the officer will … [Read more...] about How to use National Saving Certificates as security for your loans
Loose Women star Saira Khan lives in a beautiful family home in Oxford with her husband Steve Hyde and their two children Zach and Amara. Saira often shares a look inside her home and previously took fans on its renovation journey as they decorated each room, but she has kept one room pretty private until now: her bedroom. On Monday morning, Saira took to Instagram to share a photo inside and, unsurprisingly, it's just as luxurious as the rest of the property. … [Read more...] about Loose Women’s Saira Khan’s home: See her beautiful bedroom