REAL ESTATE

 RBI MEASURES ON COVID 19

 HOME LOANS AND OTHER BANKING TIE UPS IN REAL
ESTATE
RBI MEASURES ON COVID 19
 RESCHEDULING OF PAYMENTS – TERM
LOANS AND WORKING CAPITAL FACILITIES
• All lenders are allowed to permit ‘moratorium’ for a period of ‘3 months’ on all types
of term loans.
• Loans includes housing loans , personal loans ,agricultural loans etc …
• It applies only on payment of all installments falling between 01/03/2020 to 31/05/2020.
• ‘Interest’ shall continue to accrue on the outstanding portion of the term loans
during the moratorium period.
 CHANGE IN REPO AND REVERSE REPO RATE
• RBI reduced the repo rate by 75 basis points ,bringing it down to 4.4%.

• RBI reduced the reverse repo rate by 90 basis points ,bringing it down to 4%.

• Home loans, personal loans and car loans etc.. Are expected to be get cheaper due to the
recent reduction in repo rate.
• This is also a huge boost to the real estate and industrial sector ,which means they may
be able to get loans at cheaper interest rate from lenders .
• Its likely to result in commodities becoming cheaper due to low interest rates.
 CHANGE IN CRR AND LIQUIDITY RATIO

• RBI reduced the cash reserve ratio by 100 basis points ,bringing it down to 3%.

• RBI injected more liquidity from 2.8 lakh crore (1.4% of GDP) to 3.7 lakh crore
(1.8% of GDP).
• Since banks will have more money to lend and that too at lower interest rate ,it will
attract borrowers .
 EASING OF WORKING CAPITAL FINANCING
• In respect of working capital facilities sanctioned in the form of cash credit / over draft to
borrowers ,lending institutions may recalculate the ‘ drawing power’ by reducing the
margins.
• This relief shall be available in respect of all such changes effected up to may 31,2020.
• Lending institutions are permitted to ‘defer the recovery of interest’ applied in respect
from 01/03/2020 to 31/05/2020 .
• The ‘accumulated accrued interest’ shall be recovered immediately after the
completion of this period.
• The rescheduling of payments will not qualify as a default for the purpose of reporting
to credit information companies.
HOME LOANS AND OTHER BANKING TIE UPS
IN REAL ESTATE
 ADVANTAGES OF BANK PRE-APPROVED
PROJECTS
• It means that the titles and the documents of the property have been examined by a bank/financial institution (FI) on the
request of a builder. Banks/fi’s have the technical know-how, so their assessment will be a comprehensive one- it also
takes into consideration things like the track record of the builder among several other things.
Advantage of pre-approved projects to home buyers
• The home buyer frees himself from worrying whether the property complies to all the requisite legal and technical
aspects or not- here he need not worry about delay in construction due to improper documentation
• Loan sanction to buyers of pre-approved projects is quicker- the bank/FI has already done the due diligence of the
property, the records of which they maintain time taken for processing the loan application is reduced
• Pre-approved property is a good indicator of project quality as banks /fis take into consideration all parameters
including the track record of the builder before putting the pre-approved stamp.
 BANK APPROVED REAL-ESTATE PROJECTS
Bank Tie-ups
Sheth Zuri ICICI Bank (8.90%), SBI (8.40%), Indiabulls (9.25%),ICICI Home Finance (9.15%), IIFL Home
Loans (9.00%)
Piramal Vaikunth HSBC (8.90%), IDBI Bank (8.75%), Axis Bank(8.90%), DHFL(9.75%)
Runwal Eirene HDFC Home loans (8.90%), ICICI Bank (8.90%), SBI (8.40%), Axis Bank(8.90%),
DHFL(9.75%)
Rustomjee Urbania HDFC Home loans (8.90%), ICICI Bank (8.90%), SBI (8.40%), Axis Bank(8.90%), LIC Housing
Finance(8.40%)
Acme Ozone (Funded HDFC Home loans (8.90%), ICICI Bank (8.90%), SBI (8.40%), Corporation Bank(9.15%), IDBI
by HDFC) Bank (8.75%), Kotak Mahindra Bank(8.90%),ING Vysya Bank(9.65%), Axis Bank (8.90%), LIC
Housing Finance(8.40%), Tata Capital(8.70%), Indiabulls (9.25%), PNB Housing Finance
Limited(8.90%), DHFL(9.75%)
Godrej Emerland HDFC Home loans (8.90%), ICICI Bank (8.90%), Axis Bank (8.90%),
Lodha Amara HDFC Home loans (8.90%), ICICI Bank (8.90%), SBI (8.40%), Canara Bank(8.75%), Punjab
National Bank(8.50%), Allahabad Bank(8.85%),Bank of Baroda(8.65%),Syndicate
Bank(8.75%),State bank of Patiala (9.60%),Axis Bank(8.90%),Indiabulls(9.25%), PNB Housing
limited (8.90%), IIFL Home loans(9.00%)
Tata seriene HDFC Home loans (8.90%), ICICI Bank (8.90%), SBI (8.40%), IDBI Bank (8.75%), Bank of
Baroda(8.65%),Tata capital(8.79%), L&T Finance(9.05%), LIC Housing Finance(8.40%),
Indiabulls (9.25%), PNB Housing Finance Limited(8.90%), DHFL(9.75%)
BANKS INTEREST RATES ON HOME
LOANS

Microsoft Excel
Worksheet
 TAX BENEFITS ON HOME LOAN (FY 2020-2021)

Income Tax Act Maximum Deductible Amount

Rs.2 lakh (for self-occupied house)
Section 24
No limit (for let-out property)
Section 80C Rs.1.5 lakh from Principal (including stamp duty and registration fee)
Section 80EE Rs.50,000 Additional interest (for first-time buyers)
Current Home Loan Tax Benefits(FY 2020-2021)
This section deals with the yearly deductions related to the interest you pay on your property loan. The relevant
details are given below:
If your property is a self-occupied one, you can claim a maximum deduction of Rs.2 lakh.
If you let your property out on rent, you can claim any amount you’ve actually paid as interest. There is no limit.
If you’re a co-borrower and also co-owner of the house, you can each claim up to the maximum deductible
amount under this section.
The Rs.2 lakh deduction applies only if you complete the property (for construction) within 5 years. If the
construction is not completed within this period, you can claim only up to Rs.30,000.
If the property is given on rent, you can claim any amount actually spent as interest, whether it is completed or
not.
Deduction for Joint Home Loan
If the housing loan is availed by two or more persons, each of them is eligible to claim a deduction on the
interest paid up to Rs.2 lakh each. Tax can be deducted on the principal paid as well for an amount up to to
Rs.1.5 lakhs each. However, all the applicants should also be co-owners of the property in order to claim this
deduction. Therefore, a joint home loan can give you greater tax benefits.