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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
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