Sunday, 20 December 2015


We are financial consultants based in Vadapalani, Chennai. We deal in fund arrangements for third party collateral properties from Banks, NBFCs, Financial Instructions and Private Lenders. We also deal in the properties which are available for 3rd party collateral for reputed companies with good track record. If you have any reputed company which has proceeds for loan or working capital in any bank or NBFC or any other financial institutions and got sanction from their, but it doesn’t have property to give bank for collateral. We can arrange 3rd party collateral properties for such companies. Currently we have some properties in different locations which are available for 3rd party collateral. Valuations of these properties are from 1 cr to 500 cr and above. Please note that we can immediately arrange 3rd party collateral properties as per your requirement if you have sanction in hand from any bank of NBFC.

PR Finance


We are financial consultants based in Vadapalani, Chennai. We deal in fund arrangements for third party collateral properties from Banks, NBFCs, Financial Instructions and Private Lenders. We also deal in the properties which are available for 3rd party collateral for reputed companies with good track record. If you have any reputed company which has proceeds for loan or working capital in any bank or NBFC or any other financial institutions and got sanction from their, but it doesn’t have property to give bank for collateral. We can arrange 3rd party collateral properties for such companies. Currently we have some properties in different locations which are available for 3rd party collateral. Valuations of these properties are from 1 cr to 500 cr and above. Please note that we can immediately arrange 3rd party collateral properties as per your requirement if you have sanction in hand from any bank of NBFC.

PR Finance chennai


We are financial consultants based in Vadapalani, Chennai. We deal in fund arrangements for third party collateral properties from Banks, NBFCs, Financial Instructions and Private Lenders. We also deal in the properties which are available for 3rd party collateral for reputed companies with good track record. If you have any reputed company which has proceeds for loan or working capital in any bank or NBFC or any other financial institutions and got sanction from their, but it doesn’t have property to give bank for collateral. We can arrange 3rd party collateral properties for such companies. Currently we have some properties in different locations which are available for 3rd party collateral. Valuations of these properties are from 1 cr to 500 cr and above. Please note that we can immediately arrange 3rd party collateral properties as per your requirement if you have sanction in hand from any bank of NBFC.

PR Finance

Thursday, 17 December 2015


We are financial consultants based in Vadapalani, Chennai. We deal in fund arrangements for third party collateral properties from Banks, NBFCs, Financial Instructions and Private Lenders. We also deal in the properties which are available for 3rd party collateral for reputed companies with good track record. If you have any reputed company which has proceeds for loan or working capital in any bank or NBFC or any other financial institutions and got sanction from their, but it doesn’t have property to give bank for collateral. We can arrange 3rd party collateral properties for such companies. Currently we have some properties in different locations which are available for 3rd party collateral. Valuations of these properties are from 1 cr to 500 cr and above. Please note that we can immediately arrange 3rd party collateral properties as per your requirement if you have sanction in hand from any bank of NBFC.

We need below documents to proceed further. 
2) Last 2 yrs financials statements. 
3) Sanction letter or Pre-sanction/ In-principle sanction letter. Please note that we will sign exclusive service agreement with company

Petrol price tax calculation

2014 and then 2015 has seen International Crude Prices hitting all time Low in Jan 2015. Know Computation of Petrol and Diesel Prices in Chennai India
Last Updated on 1st September 2015

Fuel Price Calculation in 2015

With Fuel Prices now getting changed Frequently, know how is fuel prices computed in India

Calculating Crude Oil Cost - Petrol & Diesel - 2015

If you reading Internationally, the price of crude Oil hovers at 48 Dollar - which is roughly equivalent to Rs. 3000 (keeping the exchange rate around Rs. 65).
On Importing Oil - Barrel Cost + Ocean Freight at 2 Dollar needs to be paid - effectively implying - 50$ per barrel as import cost.
» 1 barrel of crude Oil is Equivalent to around 159 Litres of Crude Oil
» Raw Crude Oil in Indian Currency: Rs. 3185 / 159 = Rs 20 per Litre approx
Simplified Calculation Chart for Petrol & Diesel Prices in New Delhi - September 2015
Petrol Diesel
International Price of Crude Oil with Ocean Freight (as in Jan 2015) 49$ or Rs 3185 per Barrel 49$ or Rs 3185 per Barrel
1 Barrel of Crude Oil 159 Litre 159 Litre
Crude Oil  - Cost per Litre Rs 20 per Litre Rs 20 per Litre
Basic OMC Cost Calculation
Refinery Processing & Transportation Cost Rs 6 per Litre Rs 4.6 per Litre
OMC Margin, Transportation, Freight, Landing to Dealers Rs 3.9 per Litre  Rs 2.1 per Litre 
Basic Cost OMC - Pricing Charged to Dealers including Processing, Transportation, Margins etc Rs 29.9 per Lit Rs 26.7 per Lit
Calculating Dealer Retail Price - Base Location Delhi
Excise Duty as on 1st September 2015 Rs 17.46 on Petrol Rs 10.26 on Diesel
Commission to Petrol Pump Rs 2.27 per Lit Rs 1.42 per Litr
Fuel Cost Before VAT (rounded off for approximation) Rs 49 per Lit Rs 38 per Lit
VAT (Varies from State to State - 25% on Petrol & 16.6% on Diesel with Surcharge) Rs 12.25 on Petrol Rs 6.6 on Diesel
Final Retail Price as on 1st September 2015 - approx calculation Rs 61.25 per Lit Rs 44.6 per Litre

Had it been ideal world - we would have ended up with Fuel Cost of Rs 30 to 32 per Litre for Petrol and Rs 28 / Litre for Diesel Fuel

Now comes Taxation Scenario on Petrol and Diesel Fuel

» Excise Duty (including Education Cess - as on September 2015) - Rs. 17.46 for Petrol and Rs 10.26 per Litre on Diesel (There has been Multiple Excise Hikes in 2015) - goes to Central Government
For Info - Excise Duty was Rs 9.20 on Petrol and Rs 3.46 on Diesel on 1st November 2014 - which has increased gradually and are now almost 90% higher for Petrol and 200% higher for Diesel
» VAT on Gross Price (on Price + Excise Duty) * (@ 25% on Petrol, 16.6% on Diesel) - Rs. 10 on Petrol, Rs 5 for Diesel - goes to State Government. VAT also increased in Delhi by Aam Aadmi Party
Disclaimer :- Approximate Closest Figures Used, Fuel Price Calculation done in Delhi

Reason for crude oil price drop

As oil prices continue to fall, analysts and producers are trying to wrap their heads around the reasons and identify a floor price. Even though crude benchmarks like Brent and WTI keep dropping, the cost of finding oil continues to rise. What are some of the key drivers that have created this paradox?
1. The U.S. Oil Boom
America’s oil boom is well documented. Shale oil production has grown by roughly 4 million barrels per day (mbpd) since 2008. Imports from OPEC have been cut in half and for the first time in 30 years, the U.S. has stopped importing crude from Nigeria.

2. Libya is Back
Because of internal strife, analysts have until recently assumed that Libya’s output would hover around 150,000-250,000 thousand barrels per day. It turns out that Libya has sorted out their disruptions much quicker than anticipated, producing 810,000 barrels per day in September. Libyan officials told the Wall Street Journal last week that they expect to produce a million barrels per day by the end of the month and 1.2 million barrels a day by early next year.

3. OPEC Infighting
There have been numerous reports about the discord between OPEC members, leading many to believe that OPEC will not be able to reign in production like it has done so in the past. The Saudis and Kuwaitis have reportedly been in an oil price war, repeatedly lowering their prices in order to maintain their market share in Asia. John Kingston, the news director at Platts, believes that the Saudis will not be willing to give up market share like they have done during previous price drops.
4. Negative European Economic Outlook
European Central Bank president Mario Draghi has left investors concerned about the continent’s slow growth. Germany’s exports were down 5.8 percent in August, stoking the fears of anxious investors that the EU’s largest economy had double dipped into recession last quarter. Across the Eurozone, the IMF again lowered its growth forecast to 0.8 percent in 2014 and 1.3 percent in 2015.

5. Tepid Asian Demand
Beyond slow economic growth and currency depreciation, a number of Asian countries have begun cutting energy subsidies, resulting in higher fuel costs despite a drop in global oil prices. In 2012, Asia’s top spenders on energy subsidies, as a percentage of GDP included: Indonesia 3 percent; Thailand 2.6 percent; Vietnam 2.5 percent, Malaysia 2.3 percent, and India 2.3 percent. India is a primary example. Between 2008-2012, India’s diesel demand grew between 6 percent and 11 percent annually. In January 2013, the country started cutting the subsidies of diesel. Since then, diesel consumption has plateaued.

Right time to buy gold

Cheers gold buyers!!!!!

December 2015 and January 2016 is right time and right month to invest in gold since US Federal has lift the interest rates. Please ready the report below

Gold futures fell under $1,070 an ounce in electronic trading Wednesday, losing ground following an earlier close higher, after the U.S. Federal Reserve announced its first interest-rate increase in more than nine years.
The Federal Open Market Committee, led by Fed Chairwoman Janet Yellen, raised its fed-funds rate to a range of 0.25% to 0.5%, ending an unprecedented seven-year run of near-zero interest rates. The decision came shortly after the price settlement for gold.
See the live blog and video of the Fed interest rate decision and Janet Yellen news conference
In anticipation of the Fed lifting rates, February gold GCG6, +0.37% jumped $15.20, or 1.4%, to settle at $1,076.80 an ounce. Prices then slipped to $1,067.30 in electronic trading shortly after the announcement.
Gold settled before the Fed ‘s decision was released Wednesday at 2 p.m. Eastern.
“This is, without any doubt, the most dovish rate hike in the history,” Naeem Aslam, chief market analyst at AvaTrade, said in emailed comments. “The word ‘gradual’ is going to be most beaten word on the street now, given that the Fed has used this word twice in their statement.”
‘This is, without any doubt, the most dovish rate hike in the history.’
Naeem Aslam, AvaTrade

“The statement and their strategy has confirmed that they are committed to keep their balance sheet at this size and they are staying very accommodative,” he said. “However, as we say it is about clearing the noise, if we get a few hawkish [U.S. nonfarm payroll readings] and inflation picks up, the picture will change very quickly.”
Traditionally, higher rates can make precious metals that don’t bear interest less attractive to own for investors. It also boosts the dollar DXY, -0.07% making dollar-linked assets more expensive to those purchasing those assets using other monetary units.
Read: When the Fed hikes interest rates, these assets do surprisingly well
Anticipation of the rate hike had battered gold amid a slump in crude-oil prices CLF6, -0.37%  that also has diminished the appeal of the metal as an inflation hedge. Some investors have expressed concern that exchange-traded funds, a big buyer of gold assets, were liquidating their holdings in the face of the rate hike, but UBS analyst Joni Teves said that those concerns may be unfounded.
“We expect gold ETFs to be more resilient this time around,” Teves wrote in a Wednesday research note, before the Fed decision.
“That holdings are more geographically diversified also suggests that ETFs outside the U.S. are likely to be more resilient amid monetary policy easing elsewhere and broader macro risks. While some more fine-tuning may still be in store, we expect this to be limited,” Teves wrote.
The SPDR Gold Trust GLD, -2.19%  was up 1% in Wednesday trading.
Meanwhile, ahead of the Fed news, March silver SIH6, +0.34%  jumped by 47.8 cents, or 3.5%, to end at $14.248 an ounce and March copper HGH6, +0.02%  tacked on 1.5 cents, or 0.7%, to $2.072 a pound. January platinum PLF6, -0.13%  added $20.20, or 2.4%, to $876 an ounce and March palladium PAH6, -0.63%  rose $5, or 0.9%, to $571.95 an ounce.

So hurry donot wait to invest in gold

Reason for gold price drop chennai

Here are 7 reasons why gold prices are falling across the world:

1. Curb on gold import

Tough measures taken by both the government and the RBI to curb gold import amid slowing investment demand against the backdrop of a strong rally in equities, which is emerging as a preferred investment asset class, are taking some sheen out of the yellow metal.

2. Higher domestic gold inventories

India was the top consumer of the metal in 2014 and the second biggest after China in the first quarter of this year.
Higher domestic gold inventories is also having an impact on price movements of the yellow metal, a bullion trader said.

3. Concerns over monsoon

Demand for gold in India is also sluggish as concerns over a weak monsoon still remain.

Farmers are key to the country's bullion demand.

Nearly two-thirds of India's gold demand comes from rural areas where jewellery is a traditional store of wealth for millions who have no access to the formal banking system.

4. Massive selling in China

China on Monday dumped a huge amount of gold on the market, causing the price of the precious metal to fall drastically.

Reports that China gold reserves were half the expected level added additional selling pressure on gold.

According to reports, some 33 tonnes were sold in the Shanghai spot market on Monday as investors sought to shift focus to other avenues. 

5. Stronger US dollar

A stronger greenback makes dollar-denominated commodities more expensive for buyers using weaker currencies. That tends to dent demand and, in turn, pull prices lower.

In wider markets, the dollar hit a three-month high against a basket of currencies, making dollar-priced gold more expensive for holders of other currencies.

"The current downswing in Indian gold prices is directly related to the strengthening of the US dollar in recent times. We are hoping that the present trend may be arrested soon and the prices could stabilize within a month or so," said Mumbai Jewellers' Federation president Rakesh Shetty.

6. Worry over US Fed rate hikes

Gold has breached key support levels as the dollar gained after Federal Reserve Chair Janet Yellen told Congress last week that the Fed is on course to raise interest rates if the US economy expands as expected.

A rise in US interest rates will attract investors to the dollar for higher returns, driving up its value.

Chennai real estate crash

Following heavy floods in the low lying areas of Velachery and Tambaram, realtors expect a crash in prices in this fast growing region of the city.
Regretting their decision of investing in  land or properties in this area, residents said they wouldn’t suggest anyone to buy houses, flats or plots there.
“I had invested all that I had earned for the past 20 years and I am extremely distressed to see the flat engulfed in water,” said Ramesh who had recently brought a 2 BHK for `60 lakhs in Ram Nagar, Velachery. He is ready to dispose it off at the earliest and relocate to some safe place on the East Coast Road to avoid facing the crisis next year.
C Sadish, working in a leading IT firm in MEPZ Tambaram, was aspiring to buy a home in Tambaram. “Looking at houses getting completely submerged in water during the floods in television news channels, I dropped the idea and am planning to buy a piece of land in Thiruvanmiyur or Adyar and construct a house which can withstand rains in the coming years”, he said.
President of Chennai Real Estate Agents Association, Amit Damodar Chugh admitted the rains would certainly have an impact on the minds of buyers or tenants.
“While some were unable to open the doors, some were stranded for hours before being rescued. Many who have purchased houses by spending a fortune are searching for temporary accommodations. The mental agony that people have endured will affect the real estate prices in Velachery, Tambaram and Mudichur,” he added.
S Aarthi, of Medavakkam, said “I would not suggest any one to move in here, not even my enemies.”
On the other hand, developers feel that the prices of land and apartments in these areas would not be affected in the long run. Citing the Tsunami that struck the coast of Chennai in 2005, when real estate prices in ECR dipped drastically, they said it took little time for that to sky rocket. For, public memory is short, said Confederation of Real Estate Developers’ Associations of India Chennai president Ajith Chordia. He told Express that the demand for land is more and hence prices of real estate in these areas would not come down.
“The focus now would be to ask the Public Works Department to come out with a 100 year flood line data to fix the average mean sea level for plinth,” he added.

Chennai floods real estate

It's still too early to count the losses from the unprecedented floods and torrential rains in Chennai that have impacted people from all walks of life, but one of the worst hit businesses clearly is real estate.

Besides wastage of hundreds of tonnes of building materials such as cement and sand at construction sites and losses due to inordinate project delays, developers are also staring at the possibility of losing their recent sales momentum.

According to real estate consultancy Jones Lang LaSalle India, the Chennai property market was demonstrating renewed interest from homebuyers who were fence sitting for over a year since September, but rains have now affected it. "Home buyers are postponing their decisions until the rain and flood situation subsides," said Sanjay Chugh, national mandated sales head and Chennai business head of JLL Residential. Chennai has been pounded by relentless north-east monsoon rains in the past few weeks, which has severely damaged the city's infrastructure, including roads and electricity lines. The Tamil Nadu government has estimated losses at nearly Rs 8,481 crore. Several have died. Developers have stopped construction work for around 2-3 weeks now and many of them will also have to work on base structures and foundations because of waterlogging.

"The losses are huge but people will have to cope with it. It will lead to lot of stress and will take time to come back," said Irfan Razack, chairman of Confederation of Real Estate Developers Associations of India (CREDAI), which has around 500 registered builders in Chennai alone. Some of the large national builders that have significant presence in Chennai include Prestige Group, Tata Housing, Shriram Properties, Godrej Properties and Sare Homes. An average of 5,000 homes were being sold in Chennai every quarter in 2015 before the rains. According to realty research firm Liases Foras, residential sales in Chennai jumped 90%, highest across India, in the second quarter of the financial year at 7.4 million sqft.

Experts attributed the improved buying sentiment to reduced new launches, interest rate reduction and rational pricing, coupled with attractive offers from developers. But now, developers that had lined up offers in anticipation of a healthy sales cycle say waterlogging and inundation of many localities such as Tambaram, Urapakkam, Mudichur, Perumbakkam, Saidapet, Siruseri, Keelakatalai, Pallaikarana and Velacherry have impacted demand.

Two large under-construction projects of Sare Homes are impacted. "At the moment we can see that water has entered the lift wells in the completed parts of the projects and could have damaged the machinery. Construction material has also been impacted and so have the water and sewage treatment plants," said Vineet Relia, managing director at the Gurgaon-based firm. "Some of our engineers and staff were stuck in the city but a few of them have managed to move to Bengaluru," he added. Murali M, managing director at Shriram Properties, said projects are expected to get delayed by 6-12 months.

"There is huge losses of building materials, it will take over a year for builders to come out of financial damages," he said. Shriram is developing one million sqft of commercial projects and 5.5 million sqft of residential projects in the city.

Selecting builder for buying apartment

The idea of buying a flat can be an interesting prospect but you will soon realize that it is not all fun and that you have quite a lot of homework to do. Some look out for flats that fit within their budget while some are all set to dig deep to get a flat in their preferred locality. Where ever you start, you need to eventually end up looking for the builder’s reputation; except those who start right there. Let me admit that I did not but as it was to happen later, I finally made the right call.
Why Is Builder Selection Important?
Selecting the builder is the most basic and most important step on your road to purchasing a new flat. It is not just the quality of the construction alone that is associated with the choice of builder; it is also a major financial decision as the choice can enhance your investment or ruin it.
Selecting the right builder ensures quality of construction, good return on investment, safe and comfortable environment to live in and hence has a lasting impact on your finances and your life. The builder should possess the knowledge and expertise to deliver. Did I miss mentioning one more important factor? If you want to have a pleasant buying experience, you need to choose the builder who has a great professional approach and makes you feel comfortable dealing with him throughout.
Selecting The Right Builder
As I said, this is where you need to start and this is exactly where I did not. Our family was on a tight budget and hence my mind was all set to look for a flat that fit my budget, of course in the locality of our choice. As I browsed and made calls, just too many so that the mobile top-up agent started beaming every time I walked in to her store, I was left to deal with loads of information on area, topography, landmarks, square feet, brokerage, loans ( the word I just adore), bank interest rates for home loans and almost every term associated with real estate. And I just got what I had to know.
After a number of conversations over phone, meetings with builders and going through online advertisements, I was gradually led towards looking for builder’s reputation. That was when, I should say that I really, really started on the basics on how to buy a flat in Chennai. Here are some suggestions on how to select the builder for your flat.
Ask Around
Talk to your friends and family members to learn about the established builders in the locality of your choice. Those who reside in the area will be able to give you an idea about the builder’s reputation and you may also be able to obtain feedback from those who have purchased flats from the builder.
Do Some Research
Thanks to online platforms, you are just a few keys away from a lot of information on builders in your area. Get a list of builders who are well established in the area and do some analysis on their working style. Some builders specialize in constructing flats while some build independent homes. Some cater to the needs of middle class while some target the affluent section of the society and some blend both. Once you have the ground details, you can short list them based on your needs.
Experience Matters
It is true that every established builder was once a new builder as in every other profession but experience has to be taken into account unless you are extremely satisfied with the credentials of a builder. It is no good to cast away a new firm and it is equally bad to take for granted a builder who has been around for a while. Consider experience as a top priority but discussing with the builder, old or new, is essential before you enter into a contract.
Visit Finished Flats
Visiting flats that were constructed by the builder will give you an idea on the level of standard maintained by the firm. It will also help you to analyze how the builder has maximized the available square feet to provide more living space for you. A builder who pays attention to detail and who has the attitude to view things from buyers’ perspective will place comfort above everything.
If you are curious to know if I visited finished flats before booking mine, well, I did not. Our family was thoroughly impressed by the external appearance of the flats that we happened to see and let me also tell you that we did not just go by the external appearance. We were impressed by their choice of words in their online advertisements, which was a clear reflection of their commitment to their task and once we contacted, we were bowled over by their highly professional approach, which was a clear indication of how well they treated their clients. We did visit their finished flats but it was after we entered into a contract and our visit confirmed our judgment. And most importantly, the builder was referred to us by one of our friends. So, you see, I am not saying something I did not do – almost.
Discuss Before Deciding
Once you have identified the builder for your dream home, fix up an appointment to meet him. To make the interview session productive, it is highly recommended to speak up frankly about your budget and your expectations. It is also the right time to ask the builder if he would be open to suggestions regarding changes in designs to address the needs of your family.
Buying a flat, as you well know, is not an easy task. However, if you choose the right builder, purchasing a flat may be much easier than you ever imagined.


While buying a home, particularly if you are going for bank loans, you need to consider various aspects to ensure you do not over stretch to the point of becoming financially suffocated. Here are some guidelines from an experienced banker on how to handle your finances while acquiring a home, er, home loan.
From the desk of C.R. Ravichandran
Assessing means available to fund margin money and planning for possible escalation of cost during construction are two important factors to consider while buying a home.
Suggested Cautions
  1. First assess your maximum eligibility for home loan from various banks. This would help you make the right choice.
  2. As a borrower from bank, you will be expected to set apart margin money, which may be anywhere between 10% and 25%. The percentage varies from banks to banks and also schemes.
  3. Ensure that margin money to be funded by you is maximum so that you can have a reduction in interest, which would result in lesser EMI amount.
  4. Be prepared for unexpected expenses and always look out for hidden charges, if any.
  5. While going for an independent construction of house, estimates escalate by the time construction reaches lintel stage. This, in turn, may result in shortage of funds causing further delay, which again would impact negatively on your finances. You may end up paying more interest to the bank. These are the times when many buyers resort to borrowing at higher interest rate.
  6. The absence of transparent construction agreement results in the escalation of estimates by about 25%.
  7. To meet such situation, it is suggested to avail loan with lower interest. This additional fund may be used to meet the expenses.
  8. While planning your budget it is highly recommended to take into account the monthly interest you need to pay for the money disbursed by the bank. You will be paying interest till commencement of EMI.
  9. If you happen to have surplus funds, save them for September and March where IT advance tax will be due for payment.
  10. It is best to avail the services of a professional architect or an experienced person to advice you on how to maximize your living space and how to improve the appearance of your home. You will be guided on all important factors including additional amenities, quality of tiles, electrical and plumbing work with the cost involved in mind.
  11. Missing to pay your EMI may cost you dearly. An increase in EMI amount is possible under two circumstances – if you fail to pay your EMI on time and if there is a change in the interest rates. Failing to pay EMI will result in the unpaid interest for the month adding up to the loan amount resulting in higher EMI in the subsequent months. In case of change in interest rates, it is advised to keep yourself updated as banks may ignore to inform the borrower about the change in interest rate. Under such circumstances, borrowers who continue to pay original EMI amount are really in for trouble as they will be asked to pay the overdue along with expenses incurred in the process of legal proceedings undertaken to recover the additional amount. As a borrower you have every right to be informed. Make sure you monitor the account and insist on obtaining loan statement periodically.
  12. The bank will also debit incidental charges for insurance premium for building and life cover, obtaining periodical encumbrance, inspection charges, mortgage fees and cost of legal opinion certificate, if required. Such situation may arise if there are changes in local body / state rules etc, acquisition by highway authorities and any other department which will affect the construction).
  13. Some banks sanction loans up to Rs. 2 lakhs for furnishing the house. This loan will be over and above the housing term loan. It is advised to look for banks that make this offer to ensure you do not end up looking for additional resources at a later stage.
  14. It is also suggested to obtain both life cover and insurance (the premium amount is not substantial) for the building to ensure any damage to the building does not negatively impact your finances. The insurance firm may reimburse the expenses incurred up to that stage to facilitate liquidation of bank loan.
  15. Yet another important factor to consider is the value of the insurance cover. Make sure the insurance cover is for the building value and not for the loan amount. For example, let us assume that the building value is Rs. 25 lakhs and the loan amount is Rs. 20 lakhs. If a situation so arises that necessitates insurance claim, your claim amount will be restricted to 80% if the insurance cover is for the loan amount. If the damage cost is Rs. 10 lakhs and even if the claim submitted is for Rs. 10 lakhs, the insurance company will sanction only 80% of the claim. Hence, ensure that insurance cover is for the building value as per bank’s estimation.
  16. Study all the available schemes and make the right choice. Go for schemes which cover life also (one time premium covers only outstanding loan) as life cover will ensure insurance firms remit the loan outstanding in case of the demise of the borrower. A few banks offer both. Some banks finance premium amount as loan over and above the housing loan.
  17. It is suggested that you remit EMI for housing loan periodically to avoid any future litigation by the insurance firm for settlement.

Factors while buying an apartment

If you begin to have some doubts about your choice after the initial months of settling down in your newly acquired home, it can be owing to your overlooking one or two finer points while buying. The earlier the doubts, the more are the number of factors you had missed when you signed on the dotted lines. The necessity of making an informed decision can never be over stressed. If you are looking to buy an apartment, here are 10 factors you would want to check before you unburden your wallet of an advance payment.
Factors To Consider Before Buying An Apartment
For those who are first time buyers, the prospect of acquiring a home can be so exciting that they may miss out on a few factors. Here is how you work things out.

1. Location
Why does it need mention anyway as everyone will have it on the top of the list? Trust me, it is not always the case. It is true that most of the people, almost everyone starts right here but eventually some are lead away from their initial preference. For some, it may be the budget and some may be influenced by factors, which make them reconsider their initial choice. Again, it is absolutely nothing wrong in changing your preferences unless you are sure that the recent choice is as good as the earlier one if not better.
Make down a list of preferences and allow for deviation only if the options available will make your life comfortable. Assuming you are looking to buy a flat in Nanganallur and the cost is slightly (?) on the higher side, you can look for flats in Puzhuthivakkam and Madipakkam, which are within 2 kms from your initial preference. These areas may not have been your primary choice but be assured that these areas have a long list of comforts to offer including educational institutions, transport and shopping facilities. In fact, the roads in Puzhuthivakkam are in great shape.
2. Builder Reputation
However appealing a construction may look, it is only as strong as its foundation. Similarly, your investment is only as good as the reputation of your builder as builder reputation is the foundation for your investment. Builders of repute ensure everything is in order be it on the legal side or the construction aspect. Since legal aspects are taken proper care of by the builder, you will not be facing a tough time with your banker to have your home loan sanctioned. You get value for your money and you can be assured you have made a safe investment. Here is how you select the right builder for your dream home.
3. Completion Time
It is highly important to learn if the builder keeps his promises regarding time of completion. Delay in completion can cause you dearly as you will still be paying your rent, assuming you are in a rented house and will also be paying interest on EMI or pre EMI as the case may be. This extended time can give your financial planning a big blow. A reputed builder does deliver his promises but you are not going to lose anything by asking right?
4. Carpet Area And UDS
While carpet area is the usable area, UDS has an influential role while the value of the property is evaluated. Carpet area is the area of the flat excluding the area of the walls and this is the usable area inside your flat. Built-up area refers to the sum of carpet area and the area of the walls. Super built-up area includes built-up area and common areas such as staircase, lift, parking and garden. Generally the carpet area would be up to 20% less than the built-up area. Hence, instead of letting your imagination work on the built-up area, which is normally mentioned in the ads and by the sellers, ask to know about the carpet area, which has to hold your family and belongings.
5. Amenities
It is quite natural for a person with car to look out for apartments that provide car parking facility. If you are not a car owner yet, it is still suggested to buy flat with car parking facility as you would not want to look out for a rented parking when you buy a car. Other amenities that would make your life better include quality fittings and finish, fitness center and security arrangements.
6. Water Resources
This can make or break your relationship with your flat. Poor water resources and inadequate storage facilities to ensure water supply 24X7 (do I sound too greedy?) can upset everything from your work schedule to your sleep. Lining up for water would be the last thing you would want to do after moving into your newly acquired home.
7. Connectivity
Though it is said that villages are also now connected and enjoy broadband facilities, some parts in Chennai are still deprived of BSNL connection. Even if your life does not depend on internet, being able to connect and be connected through web is definitely not something you should not hope for right? Considering the projects children are asked to do at home by their schools, they may probably need internet more than you do. Check if the area of your choice has connectivity. Even if it does not and you have your data card to fall back on, you can be content that you were aware of it while making the area your home.
8. Balcony – Consider If You Can Live Without
Balconies offer a breather to those who feel suffocated within ‘four walls’ as apartments are often referred to. Not having a balcony may be a deal breaker for some while for others it may not matter. Some consider balconies as a place to dry their clothes or as an area for their washing machines and they sure would not dream of buying a flat without balcony unless the house is real big. For those who love to have a cup of tea sitting in the balcony, absence of the same may come as a disappointment. If your flat does have a balcony or two, find out what you get to view from there. If it is going to be your neighbors’ balcony or their walls, you may as well have your room extended so that you have more living space and have your cup of tea inside.
9. Pet Friendly Flats
If you have a pet, you naturally need to consider the same in your search for an apartment. It would be best to look out for pet friendly flats rather than earn unfriendly looks from neighbors who dread pets. Some flat associations follow unwritten ‘laws’ that prevent residents from having pets and go to the extent of suggesting pets be abandoned. If you do not have a pet and do not intend to have one in future as well, you still need to know if the flats are pet friendly so that you can exclude them from your list.
10. Choice of Floor
It is generally considered that the negative side to being in a flat is that you lose your privacy. Flats in the top floors can compensate to an extent for the compromise you make. And if the flat offers scenic views, top floor can be the best bargain. Flats on ground floors are often the target of salesmen and courier persons who ring your bell to inquire about the first floor resident, whom after all you never knew existed. However, you may need to opt for ground floor if you have seniors at home.

Home loan in chennai

If you have a steady flow of income with proper papers to support your income claim, you may believe that obtaining a home loan from bank is simple. Well, it is true but not always. While some manage to get their home loans sanctioned in a breeze (really!) many find the process too tedious with many pitfalls, that some end up postponing the idea of buying a home.
Getting a home loan sanctioned is easy if:
  • You have all the papers the bank demand of you.
  • You earn an income which in the eyes of the bank makes you eligible to be an owner of a home.
  • You have a guarantor with an impressive income and with a good CIBIL (Credit Information Bureau (India) Limited) score and willing to sign for you. If you had all along envied the prospective guarantor of his good fortune, now is the right time to repent.
However, not all banks ask you to bring in a guarantor but if you happen to get your home loan from such banks, be assured that you are going to have a couple of sleepless nights until you identify the right person who fits the bank’s description of a guarantor. And you may have one or more sleepless nights again if he was the person from whom you wanted to keep your little secret.

With the right documents and the right approach, getting home loan from banks can be easy. Here is how you go about it.
  • Select a banker with transparency and assess the interest rates and other terms and conditions for housing loan.
  • It is advisable to approach the banker with whom you regularly transact to help hasten the process of loan sanction. All banks will go through the credibility of the applicant by verifying the repaying history through CIBIL (an agency that furnishes loan history collected from all banks/ financial institutions).
  • You can obtain home loan application either from the respective branch or housing loan facilitators. Some banks have housing loan facilitators who can be approached for obtaining all details for home loan as they are equipped with all knowledge. Details of such facilitators are available in the website of respective banks.
  • You will be required to furnish accurate details like salary certificate and IT returns for the last three years. In case of self-employed, IT returns for the past three years can alone be produced. Ensure that IT return is submitted annually instead of belated submission in bunch just to avail housing loan
  • Don’t conceal any source of income like rent, fixed deposit interest and any already committed EMI. This will enable the bank to suggest for prudent planning and terms of repayment.   In the present economic scenario banks are willing to give liberal home loan and bank will not give lame excuse for rejecting the loan or reducing the loan amount.
  • If the loan is applied in the name of borrower and spouse to get higher quantum of loan, the property to be purchased should in joint name.
  • Get all documents xeroxed and submit it to the bank for vetting of land/ flat title by the banks panel advocate. Original title deeds to be submitted to the bank only on availing home loan. The supporting documents are Encumbrance certificate (EC) for 30 years, certified copy of parent documents, sale deed, agreement of sale, Power of Attorney (POA) etc. The documents submitted will help to obtain legal opinion.
  • In case of joint borrowers, copies of salary certificate and IT Returns are to be submitted.
  • Submit the application for home loan with all enclosures to the branch of the bank chosen by you and obtain acknowledgement of documents furnished.
  • The bank will identify a panel advocate to vet the title deed of the property to be purchased after verifying the documents personally with the registrar office. The advocate may require some more documents to produce the opinion report. In the Title Investigation Report (TIR) the advocate will discuss in detail whether the title to the property is clear, valid and marketable. Hence, it is advised to approach a lawyer with adequate knowledge of the local laws and having good contact with local people. This will eliminate all litigations/ dispute over the property. Though EC (Encumbrance Certificate) will show all registrations / mortgage etc. we cannot entirely rely on EC. Many ECs furnished conveniently/ deliberately/ erroneously omit to mention as a clause in EC states that any error the SRO will not be responsible. If the advocate is not a local person and is unaware of it the EC will not show any encumbrance and Bank may sanction loan. But subsequent dispute may cause the buyer to suffer as bank may file a case for recovery of their dues. Hence selection of advocate plays a vital role.
  • In case of flat some banks give title  clearance and in such cases the title deeds are already vetted by the bank and hence delay in processing can be avoided.
  • The bank identifies a valuer for valuation of the property to be purchased by you. The valuer (Civil Engineer) will verify approval, access to the flat, availability of water, power, soil condition and reasonableness of estimate made by the constructer. The valuer will enclose the photo of the property, road map, field map etc.
  • On submission of the above mentioned papers, the bank will process the application and if viable and feasible will sanction home loan. You will receive a sanction letter, which should be duly acknowledged by you and the copy of the sanction letter should be returned to the bank.

Friday, 27 November 2015

Home loan interest Rates

Bank Name
Floating Interest rate

SBI - State Bank Of India
9.50% (For Women), 9.55% (For Others)

Up to 5 Cr 9.50%( For women),9.55%(for others)

9.55% (Trufixed plus -2 & 3 yrs), 9.75% (TruFixed Plus 10 yrs) Or 9.55% Floating Rate.

LIC Housing

9.60% - 9.65%

9.55%(upto 25lacs),then 9.65%


Union Bank of India
9.65% - 10.40%

Bank of India

Indiabulls Housing Finance Limited
9.55% (upto 3 cr),then 10.25%

Bank of Maharastra

Corporation Bank

United Bank of India

Tata capital Housing Finance ltd
9.60% (Salaried), 9.80% (SEP/SENP)

9.85%-10.10% (for Salaried) 9.85%-10.20%( for Self Employed

Indian Bank

Deutsche Bank

Standard Chartered

Federal Bank

Allahabad Bank

Central Bank of India

UCO Bank

Bank of Baroda

Canara Bank

Oriental Bank of Commerce
9.90% -10.40%

Kotak Bank
Upto 14.5%

Dena Bank

First Blue Home Finance
10.25% (for Salaried / SEP), 10.75% (For Self Employed) (Upto 25Lacs), Then 10.75% (for Salaried / SEP), 11.25% (For Self Employed)

Vijaya Bank

Syndicate Bank

PNB Housing Finance
9.75% - 9.95% (Salaried / S.E Prof) 9.95% - 10.25% (S.Emp Non Prof)

9.85% - 9.95%

Indian Overseas Bank

Punjab National Bank

Development Credit Bank

State Bank of Travancore

Bank of Maharastra

Dhanalakshmi Bank