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The RBI’s  final guidelines on base rate will ensure that existing home loan borrowers get the full benefit of any reduction in interest rates. While it is too complex to understand how the base rate will be determined, the essence seems to be that the banks cannot discriminate between old borrowers and new ones. This will [...]

One of the positive aspects of a housing loan is it offers several income tax benefits to the person taking a home loan. These benefits cover the housing loan interest as well as capital component of the home loan repaid through equated monthly instalments ( Home loan EMIs) over the tenure. But many a time it [...]

Finance Minister Pranab Mukherjee’s recent budget announcements have come as a relief to the taxpayer. Under the revised tax structure, incomes between Rs 1.6 lakh and Rs 5 lakh will attract 10 per cent tax, while on incomes between Rs 5 lakh and Rs 8 lakh, 20 per cent tax will be applicable. For incomes [...]

It’s showdown time for the two biggies in the housing finance sector: SBI and HDFC. After the economic meltdown, most banks switched their attention from not-so-profitable commercial lending to retail lending, which have formed a sizeable part of their credit portfolio in the recent past. State Bank of India (SBI) was the frontrunner with its [...]

Getting a housing loan nowadays is not an easy task as was witnessed for the last several years. Earlier, various financial institutions and banks were queuing up to lend money on easy terms but now they lay out several conditions before they hand out any money. One of the issues that hits borrowers quite hard [...]