Investing in Luxury Homes – 7 Reasons

With the reviving economy having infused a renewed sense of confidence among High Net worth Individuals (HNI) home buyers, there has been a significant surge in demand for luxury homes asset class in the metropolitan cities of India.

They want more than just four walls and a parking slot. 

investing in luxury homesIndian luxury home buyers have sound reasons for why they want to live in premium rather than ‘normal’ homes.

Perfect View –

The 270 degree or 360 degree window view  from an apartment is one of the important aspects.  The view of  swimming pool, various sports courts, play area and excellent landscaping soothes the eyes and sensibilities of the occupants. This takes the luxurious living experience to another world.

Aspiration For Status – 

Buying a luxury home is a matter of prestige – and why not? After all, most luxury home owners have bought their pride and joy with hard-earned money. They want to live in homes that announce their arrival, and offer a higher lifestyle rather than just a postal address.   

Comfort – 

The very latest of today’s luxury homes provide all the modern comforts – and an ideal environment for living and raising a happy family. These homes are built to take care of the needs of a comfortable lifestyle. Features like swimming pools, themed, landscaped gardens, gyms, meditation centers, manicured lawns, electronic security, touch-button responsive fixtures, and entertainment and shopping available at close hand all contribute towards making the living experience more comfortable and enjoyable.   

Security – 

One important feature of luxury homes is that they have very high security. They have top-of-the-line security, both in terms of trained security personnel and security installation that guarantee safety. Further, accidents and medical emergencies can be quickly taken care of with immediate response triggered by technology, and the availability of hospitals and emergency rooms close at hand.  

Technological Enablement –

Technology and IT innovation have gone a long way to make the living experience in high-end luxury homes extraordinary. From solar generators to remote controlled window shutters, everything is directed towards meeting the demands of homebuyers looking for an ultra-modern lifestyle.   

Better Neighbours –

The benefits of housing one’s family in a luxury apartment do not only extend to conveniences. Luxury housing projects are also seen as the perfect environment for one’s children to grow up in and the adults to socialize in. After all, such projects basically form a society with a certain degree of culture, education and beliefs – in short, better neighbours. 

Investment Value –

The increasing demand for properties in India rivals that of gold. Real estate and gold are the most traditional forms of investment in India. However, properties present the advantage of being an asset that rises in value at every instance – and it is also a ‘performing asset’, meaning that it serves a practical purpose even as it gains in value. 

Given the fact that luxury homes are always in demand even on the secondary market, HNIs correctly see them as the perfect investment opportunity that guarantees multiplied returns in the future. 

What do you prefer, single family home or multi family home?

Are you looking for a good investment? Do you want to invest in a house? Are you in a dilemma whether you should go for single family home or multi family home? Here we are to help you.

single family homeWhen you consider single family home (1 or 2 bhk) and small multi family home (3 or more bhk), for investment purpose, though you can afford for a bigger house, it is always better to go with a single family home.

Here are some facts why a new investor should go for 1 bhk or 2 bhk. 

1. Expenses :

A house to maintain it neat, it needs some extra attention. This ofcourse charges your wallet. When you buy only for investing, it is better to go for a small house as the expenses on repairs and replacements are minimum. Advantage is that for a smaller house, tenants usually take interest and initiative on these small works.

2. Vacancy :

Tenants usually stay for longer in small homes than in bigger homes. Also, single family homes rent more quickly than multifamily ones. This means, fewer days actually your house is sitting vacant.

3. Tenant Interaction :
This may not seem like a big deal, but it can be. In a single family home, you don’t have to worry about the tenants getting along. In a small multi family, it is tough to have understanding and cooperation. This might affect your home and might result in more repair works or association problems and discipline problems aswell.

4. Pride of ownership :
We know that our tenants love the fact that they have a home. It may not be theirs, but they treat it as their own. They keep it clean. They love to stay in it as they hold on many memories. Ofcourse, we have some who don’t. But the ratio is on lower side. But taking the ownership and maintaining the house well, leaves us happy and tension-free

5. Sale of the property :
The best thing about single family home buyers is that, it appeals to the largest amount of buyers. Apart from retail buyers, investors would be interested in the property as well. 

It is always, the demand for 1 bhk and 2 bhk is relatively more when compared to a 3 bhk and a 4 bhk, irrespective of the area and the luxury. 

Hence, as a new investor, you will have fewer headaches with a smaller home and more profit in future.

Part payment of home loan Vs Interest reduction penalty

It is very common for a home loan payer to do the part payment of home loan to reduce the principal amount or a penalty for reducing the present interest rate. Both the options are the best if you want to close your home loan fast. But the question arises which option to take when. Here is a brief description about part payment of home loan and interest reduction penalty.

Part payment of home loan Vs Interest reduction penalty

1. What is part payment of home loan? What is Interest reduction penalty?

Part payment of home loan-  Payment made to reduce the principal of your loan. For suppose, every now and then in an year, if you save, say, minimum of Rs. 50,000 or say Rs. 1 Lakh. You can pay that amount to the bank against your home loan. This amount will be added to the principal. Inturn, this will reduce your loan tenure.

Interest Reduction Penalty – A minimal fees to be paid, to the bank, if you want to change your home loan interest rate to the present home loan interest rate.

2. When do you opt for either of the options?

Part Payment of home loan – Don’t wait to pool up your savings for part payment of home loan. Paying a minimal amount also can reduce your principal which will reduce the loan tenure. No extra fees to be paid. But be careful with your bank’s terms. Though there is no extra fees, there is a limit on the no. of times you go for part payment in an year.

Interest Reduction Penalty – If your interest rate is higher than the present interest rate and makes a much difference on your EMI, mark it in your to-do list to change your interest rate.  For example, if you are on 12 % interest and the present rate is 9%. You are paying 3% extra on your home loan which is merely a waste. Instead, pay the penalty and change to the present rate, and plan for a holiday on your monthly savings.

3. Which one to choose?

This question is valid when you are almost at the end of the home loan tenure. Or, if you plan for a balance transfer. If you are in any of these situations, then paying penalty for interest reduction is a no no. This would charge your pocket an extra than reducing the burden. If you have savings, it is better to opt for part payment of home loan which will help reduce your tenure and if you want, can also reduce the EMI.

Hence, remember that both the options are the best. But what is important is how well you choose.

Loans against property- Know in detail!

What is Loans Against Property (LAP)?

Loans against property was essentially a domain of foreign and private banks. They offered the product to fund their self-employed customers’ business-related needs. Lately, all banks are offering this product including the public sector banks.

Now, with Loans Against Property, you can leverage your property’s equity to expand your business, meet your working loans against property

capital requirements or fulfill any other personal or professional needs. Usually, loans are granted up to 60%-70% of the 

property value.

Before taking the loan, the borrower needs to sign a declaration stating the end-use of fund.

Who can opt  for Loans Against Property?

Individuals (Salaried or self-employed) who have a property and who can fulfill the following requirements  

  •  Income
  •  Age (Min. 21 Years and Max. 50 to 70 years- depends on the lender)
  •  Property Valuation
  •  Existing Liabilities (if any)
  •  Current Work Experience
  •  Financial Documents
  •  Number of Dependents

What is the process involved ?

The process is pretty much similar to the home loan process.

  • Application
  • Processing
  • Documentation
  • Verification/Valuation
  • Sanctioning of the Loan
  • Disbursement

What are the documents required for loans against property?

For Salaried:

  1. Application form with photograph
    2. Photo Identity and Address Proof
    3. Latest Salary Slips
    4. Form 16
    5. Bank Statements (Last 6 months)
    6. Processing fee cheque

For Self-Employed:

  1. Application form with photograph
    2. Photo Identity and Address Proof
    3. Proof of business existence & Education Qualifications.
    4. Last 3 years ITR
    5. Last 3 years P&L and Balance Sheet
    6. Bank Statements (Last 6 months)
    7. Processing fee cheque

When can you go for this option ?

  • To meet the credit needs of trade, commercial activity, other general business/profession, as also for their bona fide requirements.
  • To meet educational expenses of family members including near relatives
  • To undertake repairs/renovation/extension to the residential/commercial property.
  • To purchase / construct residential house/flat, purchase of plot of land for construction of house/ premises for business/commercial use.
  • For Repayment of existing loans availed from other Banks / FI’s conforming to the extant guidelines regarding  “takeover” of account.

What you should know about tax benefits for LAP?

  •  There are no tax incentives while paying the EMIs, unlike in the case of home loans. However, this is only in the case of a salaried person.
  • A businessman can claim tax deduction on the entire interest amount paid on the loan if he can prove that the loan was genuinely used to improve his business. This tax advantage is also available if the businessman takes a loan against gold or shares/securities that he owns. The interest rate for a loan against shares or securities, such as the PPF and NSC, varies from 12-15%, while that for gold ranges between 14% and 25%. In the case of the former, a lender will be willing to offer a loan that is 40-60% of the value of the securities, while for a gold loan, you will be able to get 50-70% of the value of the gold you pledge.
  • If you are already under a home loan and need money for children’s education or marriage, top-up loan is the best                      option though the interest rate is a little high. But if you are not under a home loan and have an own house, then Lap is the best when compared to personal loan. Because, the interest is lesser (similar to home loan), longer tenure, less or no processing fees.
  • If you default, the bank will sell the pledged shares or gold to recover its dues, which is a smaller loss than losing your home. However, if you need a large amount of money that runs into lakhs, the only viable valuable asset that you may be able to pledge is your house.

Different Banks Interest Rates for Loan Against Property: (As on 4th September 2015)

Banks up to 30 lacs 30-75 lacs 75 & above Processing fees
HDFC 12.75% 12.75% 12.75% 1%+ service Tax
Ing vysya 12% to 13% 12% to 13% 12% to 13% 1%
ICICI Bank 12.05% 12.05% 12.05% 1% + service tax
Axis Bank 13.15% 13.15% 13.15% 1%
SBI 12.60% 12.60% 12.60% (Upto 1 Cr) else 12.85% 1%
PNB HFL 12.25% – 13.00% 12.25% – 13.00% 12.25% – 13.00% 1%
FedBank 13% 13% 13% 1% + service tax
India Bulls 12.50% 12.50% 12.50% 1%+service Tax
DCB 13.50% 13.50% 13.50% 1% + service Tax or Min 5000/-
Standard Chartered 11.75% 11.75% 11.75% 1%+ service tax
Citibank 11.5% (Fixed for 2yrs) 11.5% (Fixed for 2yrs) 11.5% (Fixed for 2yrs) 0.50%
IDBI Bank 11.50% 11.50% 11.50% 10000 + service tax
Deutsche Bank 11.75% to 13% 11.75% to 13% 11.75% to 13% 1% + service tax
Cent Bank 14.25 N.A N.A 1% of the loan amount
HSBC 11.20% – 11.70% 11.20% – 11.70% 11.20% – 11.70% 0.50%
DHFL 13.75% 13.75% 13.75% 1.5% + Taxes.
LIC HFL 12.50% 12.50% 12.50% 0.50% + service tax
Fullerton 15.5% 15.5% 15.5% 1% of the loan amount
Reliance 13.50% 13.50% 13.50% 1%
Edelweiss 13.25% 13.25% 13.25% 1% of the loan amount
Bank of India 11.70% 11.70% 11.70% 1% of the loan amount Max. Rs.50000
Tata capital 12.50% – 13% 12.50% – 13% 12.50% – 13% (Upto 1Cr)

then 13% – 13.50%

1% + service tax
Magma housing finance 14% – 14.50% 14.50 % 14.50 % 1.25% + service tax
Kotak 12.5% to 13% 12.5% to 13% 12.5% to 13% 1%
Chola Mandalam 13.75% 13.75% 13.75% 1.5%
HDBFS 13.75% 13.75% 13.75% 1%
Bajaj Finserv 13.50% 13.50% 13.50% 1.50%

Disclaimer : This site does not take any responsibility for any sudden / uninformed changes in interest rates.

Steps for NRIs on how to sell a property in India!

Are you an NRI and inherit a property? Did you buy a home in India and got settled in other country. Are you planning to sell off that home. Here are the details. 

Steps for NRIs to Sell a Property in India

For expats, selling a property in India from abroad is a challenging process, especially if they left the country years back. There are rules for an NRI in selling his/her inherited property in India and it requires legal help. Here is the step wise procedure on how NRIs can sell a property (their inherited land or property) legally without any litigation:

tips for  NRIs on how to sell a property in India

The process is quite similar for residential Indians and non residential Indians except for the latter have tax implications and repatriation policies.

1. Title Transfer for Inherited Property

If the property is inherited, then the title should be changed to the seller’s name by the process of mutation of revenue records. This transfer requires a will or a succession certificate. If one cannot procure a copy of the will, then the local court can issue a succession certificate. With this certificate, one can apply for a title change in the mutation of revenue records office.

This procedure is time consuming and it is advisable to have them changed earlier.

2. Checklist of Documents Required for Selling

It is necessary to procure all the documents required for selling the property in India. Some of the documents include:

  • The title deed or mother deed of the property
  • No objection certificate to show the clearance of litigation and debts.
  • Occupation certificate issued by the municipal corporation
  • Plan approval/sanction certificate
  • Cooperative share certificate if the property is a part of a society building
  • Lawyer certificate, if any of the original documents were lost

Apart from these documents, the seller should have a PAN card number to sell properties that involve big amount transfers. The NRI can apply PAN to sell the properties or he/she can submit form 60 at the registrar office for the same.

3. Finding a Right Brokerage Firm

If there are no close friends or relatives to trust with the transaction, it is wise to consult a brokerage firm to assist in the selling process. However, if the seller has realty market sense and people to support then he/she can go ahead with the selling process on their own.

The brokerage firm can help you in suggesting the market situation, finding suitable buyers, price trends and risks involved. They can assist in fixing the selling price, applying for PAN and attorney service to obtain legal documents and tax implications. Although they provide end-to-end solutions, brokerage in India has no legal license and it could be troublesome if the brokerage fee is not fixed properly. It is advisable to find the right brokerage firm and fix the fee before initiating the selling process.

4. Sales Registration

It is essential to grant the power of attorney for the transaction to a PoA holder. There is no need to grant a complete power of attorney; instead the seller can give ‘Admit PoA’ rights to the PoA holder who will merely represent the owner in the registrar office. According to this, the seller should duly sign all the documents and the PoA holder will represent him in the sale registration.

However, issuing the PoA process differs from time to time and each firm will have a different process. Once the registration is complete, the seller should also concentrate on the tax implications.

5. Focus on Tax and Repatriation Issues

The NRIs have long term capital gains if the property was sold after 3+ years of purchase, the tax for which comes to 20.6%. Further, the basic exemption of Rs. 2 lakh is not applicable for NRIs. There are other tax exemptions available for the NRIs while selling the property.

The sale money can be repatriated through official dealers but it should not be more than US $1 million per year. If the property is inherited from one NRI to another NRI, then you need to get a special permission from the Reserve Bank of India. However, the brokerage firms will guide you through this process.

Do opt for a legal help. They act as best resort and pull you out from the property issues.

5 Tips to sell your home fast! Learn how to keep house sale on track!

Pankaj, a 30 year old smart guy, have been staying happily with his family in his home for over 5 years. He has a son whom he is thinking to join for schooling. His son got an admission in a school to where he has to travel for an hour from his house.  Pankaj doesn’t want his son to travel so far everyday. So he decided to take a new house near his son’s school and sell off his present house. Emotional Pankaj, tags a ‘for sale’ board to his house. It’s been three months, the tag is still hanging. He doesn’t know what went wrong for the situation. So, he starts browsing about his need. He finds an article that answers his queries.

Here it goes

Your house is a home filled with love and affection for you. But for the buyers, it is a house, just a house. Once your home is on sale you need to keep a track and insure you get to closing with minimal to no hiccups. Mess something up and you may find yourself without a buyer or with the buyer walking away after the deal implodes.

This article provides  needed tips to sell your home and also explains how to keep your home sale on track.

Tips to sell your home

1. Inspect it

Without question, the number 1 thing a seller can do to prevent delays on selling their home is to ensure that the owner has the list of verified documents prior to placing the home on market. This is to ensure the potential buyers that they are acting in good faith and have all required documents.

List of documents needed before you hit the ground.

1. Original sale agreement ( to make sure there is no outstanding loan on this property)
2. NOC from the society for sale of the flat ( to make sure the society is formed and is in existence)
3. Share certificates issued by the society.

4. Occupation certificate issued by the municipal corporation

5. Plan approval/sanction certificate

6. Proof of payment of all municipal taxes, society charges and electricity bills upto date to make sure there are no outstanding dues.

7. Income tax receipts from the seller to make sure he has paid all the income taxes and has no restriction to sell his property.

8. Lawyer certificate, if any of the original documents were lost

2. Price it 

In real estate, slow and steady wins the game. If you rush the sale and don’t get your property in decent enough shape, you will miss an opportunity of getting more money from it. If you let your feelings get a hold of you and dictate the price, you’ll not only miss the chance to sell, but also have that mistake follow you, for the future, possible transaction. 

So, it is absolutely positively essential that your home is priced correctly from day one. Remember that over priced homes take longer to sell and often sell for a much smaller percentage of the original list price.

3. Prepare it

To make the house ready for the sale, the must do things are cleaning, painting, and decluttering. Your home must truly be ready to show before it hits the market. You cannot do anything with the location, but keeping the home clean and tidy with all the modifications done, would attract the buyer. You only get one chance to make a first impression and this is especially true when selling a house!

4. List it

For those who want to keep their home sale on track,  it is good to have an experienced real estate professional in your corner. Since there are so many pieces to a real estate transaction, it is critical that you hire a professional who has experienced nearly every possible scenario that is possible.

5. Communication 

If you have an agreement with the agent, make sure you are in constant communication with all those who are involved in your home sale process.

Hence, when going for a home sale, ensure that you are not in a hurry while pricing . Ensure that you are on the correct path by taking experts decision. If you cannot take the burden or if you are running out of time, its better to go with a professional real estate agent.

Learn About The Online Term Insurance Plan

What is a Term Insurance Plan?

As compared to traditional insurance plans, Term insurance plan is a basic insurance plan wherein you pay a much lower premium to get a high sum assured. The other main difference is the death benefit which is provided only in case of death of the policy holder. It means that in case the policyholder survives the entire term of policy, nothing will be paid to the nominee hence there is no return on maturity of the term plan. A person of 35 years of age can buy a cover of Rs. 1 crore at around Rs.10,000/- per annum only.

Here is the table showing the best online term insurance plans in India (as on Oct-2015)

                                   Company                                Scheme Name Policy Term (Years)              Min        Max Min Age at Entry  Covers upto   (Max Age)   Sum Assured  (in Rs.)                                                             Min          Max         Premium (in Rs.)                           Claim Setting % (2014-2015)
ICICI Prudential iProtect 10     30 20 75 3 Lakh        NA 12,247 94.1
HDFC Life Click 2 Protect 10     30   18 65 10 Lakh 10Crore 11,910 94.0
LIC e-Term Plan 10     35 18 75 50 Lakh      NA 16,405 98.1
Max Life Max Life Online Term Plan 10     35 18 70 25Lakh100Crore 8,314 93.9
Kotak Life Preferred e-term 10    40 18 75 25           NA 8,287 90.7
SBI Life eShield 10    30 18 70 20           NA 13,135 91.1
Bajaj Allianz iSecure 10   30 18 70 20          NA 13,438 91.3
Aegon Religare iTerm Plan 5    40 18 75  10          NA 8,202 81.0

Why is it available so cheap?

Because there are no agents involved; it is similar to your online shopping wherein no shopkeeper/distributor is involved . All the amount which company have to pay towards commission/other payouts and even the other administrative costs are much lower. The same amount is passed back to the end user. The other statistically proved reason is the longevity of those buying online as the population is mostly between in between 30s and 40s and also more alert and conscious about their security & well being.


Term plan has many advantages than your traditional policies as follows:

  1. Lowest Premium (50-60% cheaper than offline) 
  2. Highest Coverage
  3. Faster process & Issuance 
  4. Less paperwork involved 
  5. Utmost Transparency 
  6. Flexible in selecting a required plan
  7. No medical checkup for certain age groups or up to Rs. 50 lakhs sum assured


Though there are lot of advantages as seen above for the policy buyer but ultimately it’s your nominee who is going to apply for the claim if arises. You have to make sure that the technology/lodging claim online and other filing process should not become a bottleneck for them because nominee in most cases would be either wife or parents. They should not be made run from pillar to post to get their due claim. This happens mainly because there is no agent or mediator who can help in all the paperwork (online) to get it done especially in times when they are under emotional trauma due to the death of their loved one. Even local office of insurance companies won’t be able to help because it is online and could be done online only.


Online term insurance plans are the best if you can educate your dependents for the procedures and formalities involved in the claim and also keep them updated about your policy contract and jurisdiction. Enjoy your cup of coffee without comparing its cost to the term plan and don’t fall prey to marketing gimmicks, be smart and buy smart.

Learn about the home loan interest saver plans!

I am a corporate employee since 10 years. I started with a salary of Rs. 3,00,000 p.a. After two years, I started drawing Rs. 5,00,000 p.a. So, like any other individual, I wanted to fulfill my first wish in the list, owning a home. After many good discussion sessions with parents, relatives, friends, etc, I decided to buy a 3 bedroom flat for Rs. 30,00,000. When I applied for a loan, I got approval for Rs. 24,00,000. with 20 years tenure, paying Rs.25,000 as EMI. As years passed, my salary, savings,the interest rate of my home loan, and my EMI everything was on uptrend. The graph of expenses and expectations, as well, is going higher. My thoughts are :

  • First, close my home loan as fast as I can.
  • Next, have funds for unexpected expenses.

So, to close my home loan either I have to increase my EMI or reduce the tenure of the home loan. Since I am earning enough, I would like to increase my EMI. So what happens to my savings and other investments?  I don’t want to  move any of my investments. I want to have funds for the reasons unknown. What options do I have then?

Home loan interest saver plansYes, for those under this dilemma, home saver scheme is an option. Savings on Home loan interest can be done by depositing your surplus funds in an account. And this account will be used to pay your principal amount of your home loan or reduce the interest amount you pay and this in turn, helps you to reduce the tenure.

But the interest you pay will be relatively higher than you pay for a normal home loan. At present, there are five banks which offer this scheme. Each bank’s scheme has its own name. And, each scheme has its own advantages and dis-advantages.

Save while you pay the interest on Home loan. Here are the options for Savings  on Home loan interest.

Let us get into the details what home loan interest saver plans various banks have to offer:

  1. Savings on Home loan interest by SBI.

It enables the customers to earn optimal yield on their savings by reducing interest burden on Home Loans.

  • Eligibility – Salaried individuals 
  • Minimum Amount – 20 lakhs
  • Allowed to withdraw – Yes

HOME LOANS – INTEREST RATES With effect from 01.04.2016

(MCLR: 9.20%)     

Borrowers’ category Home Loan interest rate, irrespective of loan limit EMI per Lac for 30 year Tenor Maxgain above Rs. 20 lacs & upto Rs. 1 crore Maxgain above Rs. 1 crore CRE Maxgain, irrespective of loan limit
Women 20 bps above the MCLR i.e. 9.40% p.a Rs. 834 30 bps above the MCLR i.e. 9.50% p.a. 55 bps above the MCLR i.e. 9.75% p.a. 75 bps above the MCLR i.e. 9.95% p.a.
Others 25 bps above the MCLR i.e. 9.45% p.a. Rs. 838 35 bps above the MCLR i.e. 9.55% p.a. 60 bps above the MCLR i.e. 9.80% p.a. 80 bps above the MCLR i.e. 10.00% p.a

2. Savings on Home loan interest by IDBI.

Home Loan Interest Saver provides you the facility of linking your Home Loan account with the Flexi Current Account (The interest liability of your home loan comes down to the extent of surplus funds parked in the operative current account. You will be allowed to withdraw or deposit funds from this operative current account as and when required. Interest on Home loans will be calculated on outstanding balance of loan minus balance in the Current Account based on EOD balance. 

  • Eligibility – Salaried individuals Who crossed 22 yrs of age.
  • Allowed to withdraw – Yes

HOME LOANS – INTEREST RATES With effect from 01.04.2016

Tenor MCLR (in% )
Overnight 8.85
One Month 9.25
Three Month 9.35
Six Month 9.40
One Year 9.45

3. Savings on Home loan interest by Citi Bank.

Citi bank Home Credit Vanilla option Fast Track option

Citibank offers you 2 options in Home Credit loans that you can choose depending on your needs:

Home Credit Vanilla Option :

Home Credit Vanilla option gives you the option of maintaining liquidity. An overdraft line is set on the Home Credit account and interest savings arising out of the Home Credit facility go towards increasing this line, which is always available for withdrawal by you.

Home Credit Fast Track Option :

Home Credit Fast Track gives you the option of repaying your home loan faster. Interest saves are adjusted towards reducing your loan outstanding, which effectively reduce the tenure of your loan and help you close your home loan faster.

  • Eligibility – Salaried individuals with at least two years experience.
  • Minimum Amount – 25 Lakhs
  • Allowed to withdraw – Yes

HOME LOANS – INTEREST RATES With effect from 01.04.2016

  • Loans up to Rs. 25 lacs                                                  –   9.85%  to 10.00% p.a.
  •  Loans > Rs. 25 lacs (without home credit facility)      –   9.85%  to 10.25% p.a.
  • Loans > Rs. 25 lacs (with home credit facility)            –   9.95%  to 10.35% p.a. 

Home Loan Takeover with Enhancement/ Home Loan Top-up (with cash out portion within 100% of Home Loan amount) 9.90% p.a. to 10.65% p.a.

Tenor MCLR (in% )
Overnight 8.65
One Month 8.95
Three Month 9.00
Six Month 9.00
One Year 8.85

4. Savings on Home loan interest by Standard Chartered.

The surplus money in your Linked Transaction Account will be used to offset the principal of your home loan.Effectively, interest will be paid only on the difference between the outstanding loan amount and your surplus funds.

  • Minimum Amount – 5 Lakhs

HOME LOANS – INTEREST RATES With effect from 01.04.2016

Tenor MCLR (in% )
Overnight 8.45
One Month 9.20
Three Month 9.35
Six Month, 1 year

2 year, 3 year

>3 year 9.65

5. Savings on Home loan interest by HSBC.

HSBC Smart Home

Your Smart Home is operated through a Smart Home account that acts as a Current Account with an overdraft limit equal to the amount of the loan disbursed. Your home loan interest is calculated, on the principal outstanding minus the savings deposited in your Smart Home account every month, over and above your EMI. So,you can reduce the quantum of interest paid and thereby reduce the tenure of your loan.

  • Interest Calculated – At Present (MCLR) 10.05 to 10.10%
  • Eligibility –  21 years
  • Minimum Amount – 5 lakhs 

What Makes Smart Home or Home Saver option different from a Normal Home Loan / Advantages with Home Saver Option 

  • The interest component or the principal amount on your home loan decreases hence the tenure also decreases.
  • You can withdraw money when needed without any prior notice to the bank.
  • You are forever on a safe side as you save money for unexpected  necessities. 
  • It also helps to reduce tax burden. 
  • Calculations are done on a daily basis.
 Dis-advantages with the Home Saver Option
  • The interest you pay on your home loan is more than you pay for a normal home loan. 
  • You might always withdraw the idle money from the account for unnecessary expenses.
  • If you are not sure of savings during the tenure you might end up paying more interest on your home loan.
  • Banks (some branches) usually lengthen this loan process as the benefit is more to the customers than to the bank.

6. Savings on Home loan interest by AXIS Bank.

AXIS Bank Super Saver Home loans 

Super Saver Home loans is a unique financing solution that helps you save on the total interest payable on your home loan.

  • Loan tenure upto 20 years.
  • Loan Amount 1 cr and above.
  • Interest Rates – Salaried (MCLR + 0.45%), Self-employed (MCLR + 0.95%)

7. Savings on Home loan interest by PNB.

Punjab National Bank Flexible Housing Loan

Provides the borrowers the advantage of substantial savings on the interest component on account of facility to deposit the surplus funds in the overdraft account and withdraw the same as per the choice and needs.

  • Eligibility – Below 50 years
  • Allowed to withdraw – Yes

HOME LOANS – INTEREST RATES With effect from 01.04.2016

Tenor MCLR (in% )
Overnight 9.15
One Month 9.20
Three Month 9.30
Six Month 9.35
One Year 9.40

Best fit for – Salaried employees and self-employed individuals whose income is not constant.

Before you opt for a Home Saver option, please do know the eligibility and all the terms and conditions about the calculations to avoid confusion. For those who are confident of savings and for those whose return on other investments is lesser, can really try to work on this option for savings on Home loan interest. 

How much you will save, with RBI Slashing its benchmark repo rate by 50 basics point?

Dated : 29-Sep-2015 

RBI slashed its benchmark repo rate by 50 basis points (0.5 percent) to 6.75 percent. This came after a total of 75 basis point cut earlier this year in three tranches as inflation pressures eased in the economy. 

Check out RBI’s trend


Questions which arise for the existing customer… 

Will this reduction be passed to existing home loan customers ? 

SBIHopefully the banks and lending institutions will pass on the benefits to there existing customers. If not full at-least partial in some wave form.

Already, the country’s largest state ­run lender, State Bank of India , has cut its base rate by 40 basis points, or 0.4 percent, to 9.3 percent, effective October 5, Chairperson Arundhati Bhattacharya told CNBC­TV18. 

In an interview, Bhattacharya said that there could be further rate cuts in the future by banks, given that the RBI Governor Raghuram Rajan has indicated that the door for future rate cuts is open. 

SBI also has cut its deposit rates by 25 basis points across maturities, effective next Monday, the bank chief said, adding that it would help bring down cost of funds for the lender.

If  banks/lending institutions doesn’t pass on this benefit to existing customer,  is there a way to avail it. If so how ?

Yes, existing loan lenders can avail the benefit in following ways 

  1.  The old home loaners have the choice to convert their existing rates to current rates by paying hefty penalty charge of minimum of 0.56% on left over principle to the banks/lending institution. Its advised to compare the benefits of paying part-payment over penalty.  Check out part-payment calculator.
  2. The old home loaners have one more choice of switching to new bank or lending institution. Check out Switch & Save option and get rewards and benefits from

How much does it save tenure ?

Definitely, there will be a change in the tenure when you go for a lesser interest rate. Infact, 0.5% change in interest rate will result in closing your loan to a maximum of  30 months earlier. 

For example, if you have a loan of 50 lakhs for a tenure of 20 years with 10% interest, a change to 9.50% interest will change your tenure to 18 years and 2 months. 

How much does it save my EMI ?

If you want to keep your tenure same, your EMI reduces from Rs. 48,251 to Rs. 46,606. This leaves you with a saving of Rs. 1645. 

Competition in home loan space has been quite intense not only from banks, private banks, nationalised banks but also from the NBFC space. SBI has again proved that it stands on the top among its rivals. Infact, with the immediate reduction in the interest rate and implementation, it makes way to the competition.

Reduction in the interest rate is always advantageous. 

For new loans and hassle-free balance transfers, logon to 

Calculate your EMI with the help of our EMI calculator…

Check out our balance transfer calculator..

Get associated with us and help us monitor your home loan against paying higher interest or higher EMIs. Also avail extra benefits like cash back. 

For more details follow the link below..

World Tourism Day – 27 September

Holidays can be a wonderful chance to get to know new places and people. As well as learning about a location’s geography, history, literature and language, visiting a new place can help break down stereotypes and misconceptions. Tourism can also benefit the communities being visited; many areas rely on tourism as their main industry. A massive 231 million people are employed in the tourist business, and recently there has been a dramatic increase in the number of holidays taken, with more people going away more often. 

What is World Tourism Day 

Since 1980, the United Nations World Tourism Organization has celebrated World Tourism Day on September 27. The purpose of this day is to raise awareness on the role of tourism within the international community and to demonstrate how it affects social, cultural, political and economic values worldwide.

Each year has a particular theme. With more than a billion tourists now travelling the world each year, the theme, “1 Billion Tourists, 1 Billion Opportunities”, for 2015 explores the potential of tourism for socio-economic development. The UNWTO has developed a global code of ethics for  tourism,  “to help minimise the negative impacts of tourism on the environment and on cultural heritage while maximising the benefits for residents of tourism destinations”.  It includes sections on ‘The Responsible Tourist’, ‘Trips for travellers’ and ‘Sustainable development’.

Why teach about tourism?

Tourism is a global phenomenon and is a great entry point into looking at other issues such as trade, climate change, sustainable development, workers’ rights and human rights. It naturally fits into the Geography and Modern Foreign Languages curricula, and can be used as a starting point for work in other subjects such as looking at statistics in Maths or sustainable technologies in Design & Technology.

Teaching about tourism raises pupils’ perceptions of the impact they can have on holiday, and can influence their choice of behaviour both while on vacation and towards tourists in their home.

Suggested WTD Activities 

The possibilities are endless to promote the theme. See below for just a few suggestions of how you can get involved.

Spread the word

The WTD website is full of resources you can use to spread the word .

The message of the UNWTO Secretary-General can be freely used in conference materials, brochures, documentaries etc.

You can feel free to upload the logo on your website. You could also use the logo to make your own WTD-themed materials, such as t-shirts, stickers, posters etc.

Hold an event 

WTD is a celebration. So concerts, festivals, shows and parades are a great way to take part.

Launch a competition

A competition – essays, paintings, videos – on tourism and sustainable energy is a fun and simple way to get involved in World Tourism Day.

Take a trip

What better way to celebrate WTD than enjoying being a tourist yourself? Whether it’s around the world or within your own country, with your family or your classmates.

On previous WTDs, a number of destinations and sites have offered free entry or special discounts to the public, so look out for special offers!

World Tourism Day Celebrations in India

People can visit Taj Mahal and nearly 200 other ticketed monuments and museums across the country for free on September 27 that coincides with the World Tourism Day. 

Apart from 116 ticketed monuments which include World Heritage Sites like Taj Mahal, Agra Fort, Vitthala Temple Hampi, Western Group of Monuments of Khajuraho and Buddhist Monuments at Sanchi, entry will also be free for 35 site museums and all other museums under the administrative control of the culture ministry, such as the National Museum and the Salar Jung Museum. 

Other ticketed monuments which will not carry any entry fee on September 27 include Golconda Fort, Charminar, Hydrabad Fort, site of Mauryan Palace, Kumrahar, Patna, Shershah Suri’s Tomb at Sasaram, excavated site of Vikramshila, Antichak, excavated Site of Nalanda, and ancient remains at Vaishali. 

Note : Check World wide  home loan interest rates  in