Banks Offer 85% of Home Value

June 5, 2007	(Be the first to rate this story!)  Loading ...
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Now comes the satisfying time for home buyers and second home buyers as home financers continue to lend up to 80-85% of the home value and have not reduced the figure.

There were rumors in the market about home lenders to reduce this percentage to further squeeze credit flow to the real estate market and especially for second homes.

However, the leading banks including HDFC, ICICI Bank, BoB, and UTI Bank among others have not brought any reduction in the percentage of home value against which they lend money.

HDFC lend up to 85% of the home value for the purchase of new homes. ICICI Bank, a leading private sector lender is currently offering loans up to 85% of the home loan value if it is a first buy. In case, it is regarding buying second home, the margin money has to be necessarily high, says a ICICI spokesperson. The Bank lends up to 70-75% of the home value.

Banks take several factors into account when lending. The major ones remain the applicant’s profile, his repayment capacity, credit history, location of property etc. They lend only after a thorough appraisal of the application.

IDBI Bank also lends up to 85% of the home value if it is first buy while for a second buy, it largely depends on the feedback from the applicant’s appraisals.

UTI Bank, another private sector lender also lends up to 85% of the home value if it is a first buy. The bank has always followed a conservative policy while lending.

We take installment to income ratio into consideration when lending for second home. The decision is more related to the repayment capacity of the consumer.

News Published Under:   Real Estate India, Banking and Finance |

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