A PRESENTATIONOn

Home Loans

By Ravi & Ganesh (GBS,HYD)

CONTENTS What Is a HOUSING LOAN? Which Bank’S / Organisation’s Providing

Housing Loan’S? Types of Interest Rates? How to Calculate EMI?

HOUSING LOAN Home Loan is a Secured Loan offered against the security of a

house/property ,the property could be a personal property or a commercial one.

If the borrower is failed to pay back the loan, the Banker can retrieve the lent money by selling the property.

Housing loans will be given easily to a GOVT employee.

Different Sources From Which We can Avail Bank Loans

Banks ICICI HDFC HSBC IDBI CORPORATION BANK OF BARODA SBI SBH …… etc

Organisations’s

LIC INDIA BULLS BIRLA HOME LOAN DHFL RELIANCE …. etc

What is Rate of INTEREST? A rate which is charged or paid for the use of money

. It is calculated by dividing the amount of interest by

the amount of principal. Interest rates often change as a result of inflation

and Federal Reserve Board policies.

EXAMPLE :- if a Lender (such as a bank) charges a customer $90 in a year on a loan of $1000, then the interest rate would be

90/1000 *100% = 9%.

Rate Of Interest

BANK’S ORGANIZATION’S

ICICI – 11.25% HDFC – 11.5% SBI - 11% IDBI – 11.25% ING VYSYA – 10.25% AXIS – 11%

LIC – 11% INDIA BULLS –

10.5% BIRLA HOME -

9.75% DHFL - 11.25% RELIANCE - 10.75%

How do Home Loans Differ from Organisation to Organisation

• An Organisation / Bank has all THE RIGHT TO Reject The Loan if They Find Any Docs missing while applying for the Loan

• Every Organisation has different ways Of Verifying / Doing inspection according to The Docs Submitted.

Difference In Processing Fee.

Difference In Interest RATES

Interest RATES also depends on SECURITY which we are showing to the BANK.

TYPES OF INTEREST RATES

• Compound interest rates• Simple interest rates

• Fixed interest rates• Introductory interest rates• Partially fixed interest rate

• Variable interest rate

Description of Interest Rates

Compound interest rates - Compound interest is interest that is charged on a daily basis. This type of interest rate keeps going and going. This is the type of interest rate that most consumers are on

Simple interest rates - Simple interest is only calculated towards the principal amount that is unpaid. This type of interest is basically the opposite of the compound interest rate, it is not charged on a daily basis

Fixed interest rates - If you have a fixed interest rate it is an interest rate that is basically locked in for the duration of the agreement. Fixed interest rates can be beneficial, but make sure that the agreement is read thoroughly

Introductory interest rates - This is an interest rate that is given in the beginning of the offer for the time stated on the agreement. It is very important not to get sucked into an agreement because the initial sign up looks great. After the introductory rate the rates go up

Partially fixed interest rate - This is an interest rate that allows the consumer to pay partial interest on one part of the loan and variable interest on the other

Variable interest rate - A variable interest rate is just as it sounds; it varies depending on the changes in cash rate of other changes made by your provider.

Compoun Interest formula: A = P(1 + r)n

P-  principal (the initial amount you borrow or deposit)r- is the annual rate of interestn- is the number of years the amount is deposited or borrowed for.A - amount of money accumulated after n years, including interest.

Simple interest=I = prt

HOW TO CALCULATE EMI?

Where,L = Loan amounti = Interest Rate (rate per annum divided by 12)^ = to the power ofN = loan period in months

EXAMPLE OF CALCULATING EMI

Assuming a loan of Rs 1 Lakh at 11 percent per annum , repayable in 15 years, the EMI calculation using the formula will be :

EMI = (100000 x .00916) x ((1+.00916)^180 ) / ([(1+.00916)^180] – 1)

====> 916 X (5.161846 / 4.161846)

EMI = Rs 1,136

ANY QUERIES

Thank u………..!