Housing Finance Final

8/3/2019 Housing Finance Final

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Housing FinancePresented by:

Namrata

Meenal

ManikaMukesh

Lokesh

Laveena

LajwantiNidhi


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Housing Finance

Housing Finance is provided for the following

purposes:-

New land purchaseExtension

Renovation


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Characteristics of a Mutual Fund

>The NHB was established in 1988 under the NHB Act,1987,to

operate as a principal agency to promote housing finance

institutions(HFIs),at both local and regional levels,and to

provide financial and other support to them.

>It can establish offices/branches/agencies at any place in

and,with the RBIms prior approval,outside India.

>Its authorised and paid-up capital is Rs.350 crore,fully

subscribed by the RBI.

National Housing Bank


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Provisions of the NHB

Promoting HFIs. Making of loans and advances or rendering

any other form of financial assistance forhousing activities to HFIs,banks etc.

Subscribing shares,bonds,debentures andsecurities of every other description.

Guaranteeing the financial obligations of HFIs.

Undertaking research and surveys onconstruction techniques.

Formulating schemes for purposes ofmobilisation of resources and extension ofcredit for housing.

Formulating schemes for economically

weaker sections of soceity. Or anisin trainin ro rammes.


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Contd..

Providing guidelines to HFIs.

Providing technical assistance to

HFIs. Coordinating with LIC,UTI and otherfinancial institutions.


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Housing Loans in India

- Home Loan Interest Rates

- Types of Home Loans

- Tax Benefits on Home Loans

- Home Loan Providers

- Home Insurance Providers

- Finance and Banking- Mortgage

- Repayment


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Types of home loans in India

For construction or buying a new home

For home repairs and renovations

For purchase of plots

Against mortgage of property

Note: No tax benefits are available for NRI customersunless you file returns and thereby become eligible toavail of the tax benefits.


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There are a variety of home loans made available by

the different finance companies.

a) Home Purchase Loans

b) Home Improvement Loans

c) Home Construction Loans

d) Home Extension Loans

e) Home Conversion Loans

f) Land Purchase Loans

g) Bridge Loans

h) Balance-Transfer Loans

i) Re-finance Loans j) Stamp Duty Loans

k) Loans to NRIs


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Home loan providers

State Bank of India

Standard Chartered Bank

Citibank

HDFC

HSBC

LIC Housing Finance

HUDCO

Canfin Homes Ltd.

Saraswat Bank

IndusInd Bank ICICI


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Financial

Institutions

Tenure (in

years)

Rate of

Interest Fixed

Rate of

InterestFloatin

g

Processing

Charges

State Bank of

India

Up to 5 years 12.25% 10.75% 0.50% of loan

amount

5-20 years 12.25 % 11.25 % -

ICICI 0-20 years 10.5% 9.5% 1% of loanamount

LIC Housing

Finance Ltd.

0-20 years 10.5%- 11% 9.5% 0.5 per cent of

the amount

(max. Rs.

5000)

HDFC 0-20 years 13.25% 11.25% 1% of the loan

amount +appli

cable service

taxes and cess)

HSBC 0-20 years 10.75% - 1% of loan

amount

Citibank 0-20 years 9.75% 9.00% 1% of loan

amount

Comparative Chart on Home Loan Interest Rates


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Financial

Institutions

Tenure (in

years)

Rate of

Interest Fixed

Rate of

InterestFloating

Processing

Charges

Canara Bank Up to 5 years 10.75% - -

Above 5 yrs up

to 10 yrs

11.00%- -

Standard

Chartered

Bank

0-20 years 10.5% 9.25% 1.25 % of loan

amount

Canfin Homes

Ltd

0-20 years 9.25%-12% - -

IndusInd

Bank

0-20 years 10.5 % (for 20lakhs)

9.25 % (for 20 lakhs)

1.25% of loan

amount

Saraswat

Bank

0-20 years 11 10 -

HUDCO 0-20 years 10 % (< 10

lacs)

10.5% (>10lacs)

9% (< 10 lacs)

9.5% (>10 lacs)

0.5 % of loan

amount

Comparative Chart on Home Loan Interest Rates


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Tax benefits can be claimed on both the principal and interest components of the home

loan as per the Income Tax Act, 1961. These deductions are available to assesses, who

have taken a loan to either buy or build a house, under Section 24(b).

Interest on borrowed capital is deductible up to Rs 150,000 if the following conditions are

satisfied:

Capital is borrowed on or after April 1, 1999 for acquiring or constructing a property.

The acquisition/construction should be completed within 3 years from the end of the

financial year in which capital was borrowed.

The person, extending the loan, certifies that such interest is payable in respect of the

amount advanced for acquisition or construction of the house.

A loan for refinance of the principle amount outstanding under an earlier loan taken for

such acquisition or construction.

Tax Benefits on Home Loans


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Home Insurance in India

A formatted Home Insurance policy usually covers calamities - natural andman-made.

Fire

Earthquake

Lightning, Storm, Cyclone, Flood Tsunami

Riot, Strike, Malicious damage

Terrorism

Aircraft laws

Impact from rail/ road vehicles Landslide

Burglary


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As home insurance become obligatory and people are more interested in

protecting their homes, the home insurance sector are providing their

customers with attractive policy plans to suit their needs.

The initial procedure for home insurance begins with the evaluation

of your property. The value of your house is evaluated as per the

area of your home multiplied by the rate of construction per. sq.

feet, as on the date of taking the policy. For example, if your home

is 1500 sq. feet and the construction rate till date per sq. feet isRs1000/-, then the sum insured for your homes building structure

is Rs. 15,00,000.

The insurance of household possessions or contents are ascertained

on the market value of the goods. This means that if there were a

loss, the claim would be paid on the value of purchasing a similarnew item, less reduction for the usage.


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Finance & Banking

The expansion in terms of space and range encompasses residential,

commercial, infrastructure and logistics.

Home loans to both Indian and NRI customers at floating and fixed rate of

interest

Person looking for a housing loan can avail himself of life insurance covers,home protection insurance, and other privileges related to banking

facilities.

Banks and HFCs are entering or seeking to enter into tie-ups

The Annual Monetary and Credit Policy Statement for the Year 2007

The total investment required in the tenth plan period, has beenestimated at Rs 1,108,800 crore approximately


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Mortgage in India

The Mortgage Financing industry was estimated approximately at

US $ 18 billion in India.

The top players in this industry are housing finance companies,

commercial (local as well as foreign) banks, cooperative banks and

other non-banking financial companies (NBFCs).

The twin problems ofaffordabilityand accessibility that hinder the

progress of housing in South Asia need to be addressed.

Though the housing finance industry in India is growing for

the past few years still financing through the organized sectorcontinues to account only for 25% of the total housing

investment in India (Source: LIC Housing finance).


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Discussion on Home LoanRepayment & Credit Cards

Housing Finance Final

Documents

Transcript of Housing Finance Final