Getting a home loan becomes easier
Bangalore: With the availability of funds and rising trust in the borrower, banks are planning to lend more for home purchases during the festive season. Banks like State Bank of India, Deutsche Postbank, ING Vysya Bank and Punjab and Sind Bank have already taken initiatives to cash in on this opportunity, reports The Economic Times.
Lenders such as ING Vysya Bank, and Punjab and Sind Bank have reduced the margin money requirement to 15-20 percent from 25-30 percent towards the cost of the house on their home loans. So on a home loan of 
25 lakh, a customer would now need to pay only 3.75 lakh against 6.25 lakh demanded earlier, where the margin norm is relaxed to 15 percent from 25 percent. State Bank of India, which has cut the margin requirement to 20 percent from 25 percent, may reduce it a further five percent. The interest rates are also in favor of buyers now as it may start rising again in a few months. The rates have fallen to about eight percent from as high as 13 percent in early 2008.
"The economy has improved and the liquidity situation is much better and interest rates have eased off considerably and it is only natural then that the home buyers expect the reduced risks to result in reduction in interest rates and relaxation of margin money norms," said Anoop Pabby, Joint Managing Director at Deutsche Postbank Home Finance. The company is now funding up to 80 percent of the property value to most salaried people and in a few cases up to 85 percent, depending on the credit worthiness of the borrower. This is more than the 70 percent it used to lend a few months back.
25 lakh, a customer would now need to pay only 3.75 lakh against 6.25 lakh demanded earlier, where the margin norm is relaxed to 15 percent from 25 percent. State Bank of India, which has cut the margin requirement to 20 percent from 25 percent, may reduce it a further five percent. The interest rates are also in favor of buyers now as it may start rising again in a few months. The rates have fallen to about eight percent from as high as 13 percent in early 2008.
"The economy has improved and the liquidity situation is much better and interest rates have eased off considerably and it is only natural then that the home buyers expect the reduced risks to result in reduction in interest rates and relaxation of margin money norms," said Anoop Pabby, Joint Managing Director at Deutsche Postbank Home Finance. The company is now funding up to 80 percent of the property value to most salaried people and in a few cases up to 85 percent, depending on the credit worthiness of the borrower. This is more than the 70 percent it used to lend a few months back.