Reserve Bank of India
07:14
Showing posts with label housing Finance. Show all posts
Showing posts with label housing Finance. Show all posts
Thursday, 11 April 2019
Wednesday, 24 October 2018
housing Finance
07:58
Additional Housing Loan Scheme
Additional Housing Loan Scheme
Source:Andra Bank
Staff Housing Loan Scheme -Enhancement of Limits and Modifications
Sunday, 28 August 2016
Loans
06:42
Loans to lower Income group without guarantee
Loans to lower Income group without guarantee
Loans to lower Income group without guarantee
Purpose :
Housing Loans up to Rs. 5.00 lacs to new / existing borrowers in EWS/LIG Categories.
Housing loans means loans to eligible borrowers in EWS/LIG categories for house improvement, construction, acquisition and purchase of new or second hand dwelling units.
Eligibility :
Individuals following under Economic Weaker Section (EWS) or Lower Income Group as defined below :
Economic Weaker Section (EWS) means households with monthly household income upto Rs. 5000/- per month or as revised by the Ministry of Housing and Urban Poverty Alleviation, Government of India from time to time.
Lower Income Group (LIG) means households with monthly household income between Rs. 5001/- to Rs. Rs. 10000/- per month or as fixed by the Ministry of Housing and Urban Poverty Alleviation, Government of India from time to time.
Quantum of Loan :
Maximum Loan Rs.5 lacs for a housing unit of size upto 430 sq ft (40 sqm) carpet area.
Loan Cost Ratio :
Loan will be restricted to 75% of the estimate of construction/improvement acquisition and purchase of new or second hand dwelling units.
Installment to Income Ratio :
45% at Branch level
Above 45 to 50% at RO/CO Level
Security :
Exclusive charge on the property
Age of the property not more than 25 years and the residual life of the property should not be less than tenure of loan sanctioned
To know the list of documents required for loan approvals
Source:Cent Bank
Tuesday, 15 March 2016
subsidy
07:55
ICICI Bank launches credit-linked subsidy scheme under PMAY
ICICI Bank launches credit-linked subsidy scheme under PMAY
Country's largest private sector lender ICICI Bank launched a credit-linked subsidy scheme for home loans under Pradhan Mantri Awas Yojana ( PMAY).
Under this scheme, individuals including women borrowers from the economically weaker section and low income group will be able to acquire and construct the first brick-and-mortar house of the family by paying significantly lower equated monthly installments ( EMIs), ICICI Bank said in a statement.
ICICI Bank has signed an MoU with National Housing Bank ( NHB) to facilitate the credit-linked subsidy to eligible borrowers.
Under the scheme, an eligible customer will get a subsidy at 6.5 per cent per annum on a maximum amount of Rs 6 lakh or the loan amount, whichever is lower, for a maximum tenure of 15 years.
The subsidy is computed on the net present value method.
"ICICI Bank is committed to support Government's vision to provide housing for all by 2022. We believe that this scheme will empower a larger section of customers including women borrowers to realise the dream of owning their first home", ICICI Bank Executive Director Rajiv Sabharwal said.
The loan amount would be as per eligibility of customer and there is no maximum limit on the amount, it added.
The scheme is available to those without a brick-and- mortar (pucca) house, with families comprising husband, wife and unmarried children.
Source:BankingUpdates
Source:BankingUpdates
Tuesday, 5 January 2016
SARFAESI law
07:34
41 more housing finance firms allowed to use SARFAESI law
41 more housing finance firms allowed to use SARFAESI law
**Move will facilitate quicker recovery of dues and encourage companies to lend more
Call this a New Year gift from the Narendra Modi government to the housing finance sector. The Finance Ministry has allowed 41 more housing finance companies (HFCs) to use the SARFAESI law, bolstering their efforts in recovery of dues and thereby reducing their non-performing assets.
This move of the Department of Financial Services (DFS) is also expected to build confidence among the HFCs to lend more to the vulnerable section of society, thereby aiding financial inclusion.
More numbers
Taken together with the 19 HFCs notified earlier for using SARFAESI law, almost the entire housing finance industry regulated by the National Housing Bank can now use this law for recovery of their dues.
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, empowers banks and financial institutions to attach pledged assets of the borrower in the event of the non-repayment of dues by the borrower.
Reacting to this latest Finance Ministry move, Anil Kothuri, President and Head-Retail Finance, Edelweiss Financial Services, said this would help in reduction of non-performing assets (NPAs) for the company.
‘On par with others’
“SARFAESI law will be a quicker way to recover our dues instead of going through regular court. The entire recovery process will get accelerated. It will also put us on par with other players in the housing finance industry who already use SARFAESI law,” Kothuri told BusinessLine.
Edelweiss Housing Finance, the housing finance arm of the Edelweiss Group, forms part of the list of 41 HFCs notified by the Finance Ministry as an eligible “financial institution” to use the SARFAESI law for recovery of dues.
The other players who form part of this list include Reliance Home Finance, Tata Capital Housing Finance, Shriram Housing Finance, DMI Housing Finance, Aditya Birla Housing Finance, Muthoot Housing Finance and Manappuram Home Finance.
KV Srinivasan, CEO, Reliance Commercial Finance, said that it’s an enabling norm for the industry to deal with habitual and stubborn defaulters, something used by the industry very cautiously and remotely after exhausting options. In India, banks were always covered under the SARFAESI law, ever since it’s enactment in 2002.
NPA situation
Housing finance (residential mortgage) has been growing at a scorching pace (about 20 per cent in the case of HFCs) with total outstanding home loan portfolio estimated at about ₹10 lakh crore as of December 31, 2014.
Currently, the non-performing assets level for HFCs is miniscule.
Their gross NPAs as on December 31, 2014 stood at 0.74 per cent.
Despite the stress in their operating environment, many HFCs have been able to maintain their asset quality.
Of the housing loan book of ₹10 lakh crore, banks accounted for as much as ₹6.3 lakh crore while the remaining ₹3.7 lakh crore came from the HFCs.
The housing finance market is dominated by five major groups — State Bank of India, LIC Housing Finance, HDFC, ICICI Bank and Axis Bank. The five entities account for over 60 per cent of housing credit in the country.
Financial inclusion
Enabling HFCs to use SARFAESI law could aid in financial inclusion as these companies are expected to come forward to lend more to people with informal incomes. “This will improve collateral enforceability and so companies are expected to lend more to the common man. It will obliquely aid financial inclusion,” said a top industry official.
Source:BankingUpdates
