hose scouting around for home finance, take note. You have one more player to check out: GE Home Loans.
In case you were unaware, GE Countrywide is known for its auto loans, consumer durable loans, two-wheeler loans, loans against property and personal loans.
Now, they have hopped onto the home loan bandwagon too.
The GE Home Loan starts at...
Rs 2 lakh (Rs 2,00,000). This is almost the same as a Citibank Home Loan, which starts at Rs 2.1 lakh (Rs 2,10,000).
If you need a smaller amount, consider the nationalised banks who start their loans at Rs 1 lakh (Rs 1,00,000) or less.
Looking for a fixed rate loan?
Then the GE Home Loan is not for you. Only floating rate loans are being offered now in the 7.5 - 8.5 percent range.
In how many years can you repay the loan?
Well, you can repay it in anywhere between one to 20 years.
What else should I know?
If you are looking at a plot of land or at a building still under construction, you will be disappointed. The loans will only be sanctioned for ready-to-move-in homes and apartments.
Questions you would want to ask the GE Home Loan officer
1) What are the processing fees? The industry rates are around 0.50 to 0.75 percent of the loan amount. Some may give a fixed rate of Rs 5,000, with service tax.
2) How long would it take to get the loan sanctioned? Normally, most home finance companies/ banks sanction the loan within a week if your documentation is in place.
3) Will there be an age limit on the building you want to buy your home in? If the apartment is in a building which is more than 15 years old, the home loan may or may not be sanctioned. Don't forget to check this one out.
4) Must your home be in any specific location? Players like Citibank, Stanchart and HSBC offer loans to individuals in specific cities.
5) What is the age limit? It usually starts at around 23 years and goes upto 58 or 65 years, depending on whether one is a salaried employee or self-employed.
6) What is the prepayment penalty in case you want to pay your loan or part of it earlier? Some home finance companies/ banks charge a fixed amount; others charge a percentage. Some levy a fee only if the entire amount is repaid; they do not penalise you for a partial repayment of the loan.
7) How often will the floating rate be revised? Every month, every quarter or every six months? The more frequently the interest rate is revised, the more in line will your loan be with the interest rates of the economy.
The GE Home Loan is not for you if:
1) You want a fixed rate loan.
2) Your apartment is still under construction.
3) You want to buy a plot of land.
4) You need a very small amount of less than Rs 1 lakh.
5) You want the loan for a very long period (more than 20 years).
The GE Home Loan is for you if:
1) You want a floating rate loan.
2) Your home is ready for you to move in.
3) Your loan amount is Rs 2 lakh or more.
4) You are looking at a one to 20 year time frame to repay your loan.
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