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21 August 2011

Central Bank of India Home Loans for Renovation


A well reputed bank the Central Bank of India offers loans to people who are aged 21 and above and who have the repayment capacity are offered loans for house purchase, renovation, land purchase and they also have the facility of purchasing houses in old buildings which some years back was a no no for any lending institution.
The Central bank of India offers loans to NRIs as well as Indians at low rate of interest. They also promise that the house will be insured and covered for any calamities till the tenure of the loan repayment. The bank offers loans for purchase of old property which may not be older than 30 years. Renovation and extension of the existing flat is also helped by offering loans at low interest rate and customized repayment schedule.
The bank promises no prepayment charges! no penalty , no processing charges, and free insurance cover that is life insurance cover free for the entire loan amount. But here the loan amount may be limited as the bank offers loan from 5 lakh to 20 lakh for a tenure of 20 years. The Central Bank of India offers equity loans as they require some assets as security for offering the loan. Since the loans are offered to both salaried as well as self employed individuals they do need some security cover for this.
Wondering how no prepayment charges and no administrative charges? They do have a late fee that is in case of delay in paying the EMI there is a 2% late payment charge. They also have a mention for change of repayment schedule from fixed rate of interest to floating rate of interest and they charge 1% of the loan amount for the same. And this is required with the volatile home loans market and fear of recession setting in the borrowers has every right to change to a better home loan.

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