Home
Home      »    Private Banks

Property

Private Banks

A private bank is here to stay as it is prompt in its service, customer friendly and has done away with complex banking procedures which earlier made banking difficult for individuals. In fact a private bank strives hard to simplify banking procedures and introduce several methods to make life easier for consumers. Private banking is more than just having an account in the bank.

A private bank will offer different services like asset management and other financial services and financial products. You can avail loan from a private bank. Owing to the fact that a private bank is more prompt and consumer friendly has increased the competition between private and the public banks.

In an attempt to outdo the excellent services offered by a private bank, the public sector banks have enhanced their quality of service and are facing stiff competition. Not only that there is competition among the private banks too.
 
Credit and private banks
 
A private bank in addition to opening an account for you will extend loans of different kinds. You can avail an auto loan, personal loan or a home loan.
 
Names of well known private banks
 
Given below is a list of the well known private banks. They are –
 
  • Federal Bank
  • ICICI
  • HDFC
  • Axis
  • Yes Bank
  • Kotak Mahindra Bank
  • IndusInd Bank
  • IDBI
  • Global Trust Bank
  • ING Vysya Bank etc
Private housing finance
 
Let us see how private banks extend housing finance to you. You need to qualify for availing housing finance from a private bank. Prior to taking out a home loan, you need to decide upon few aspects that will ensure that your home loan repayment is smooth without any hiccups.
 
What you need to do before taking out home loan?
 
There are few aspects that you should pay heed to. They are –
 
     Find the property you will buy
  • Assess your affordability

     

  • Settle for the loan term

     

  • Decide which is better –Floating rate of interest or fixed rate of interest

     

  • Shop for a housing finance company

     

  • Check its credibility

     

  • Take the plunge
Private housing finance – A systematic approach pays off
 
Given below is a step-by step process of taking out home loans from a private bank.
       * Contact a private bank
 
       * Get to know details of the home loans
 
       * Find out the rate of interest of the home loan
 
       * Submit your loan request.You can apply for the loan alone or along with
 
         a co-signer/co-applicant
      
      * Fill out the loan request application form
 
The private bank will find out the authenticity of information entered in the loan request application form.
Once it is satisfied with your credentials, it gives you a sanction letter. This letter contains information pertaining to home loan rate, loan amount, term of the loan, repayment mode as well as other terms and conditions.
You need to furnish essential documents. These include passport size photograph, age and address verification document. It may be your PAN card, valid passport, ration card, and election Id card etc. You also need to give a salary statement.
 
  • Income tax returns
  • Original papers of your property
  • Appraisal document etc
 
Prior to disbursing the loan amount to you, the private bank will verify all the information and documents you have furnished. The original papers of your property remain with the private housing finance company till the time you don’t repay the entire loan amount. You need to use your property as collateral. You will get 85% of the property value as home loan amount.
 
Repayment mode –
 
You can return the home loan as EMI or Easy Monthly Installments.
 
Types of home loans
 
The following types of home loans can be availed. They include –
 
  • Stamp Duty Loans
  • Land Purchase loans
  • Home purchase loans
  • Home construction loans
  • Home improvement loans
  • Home extension loans etc
 
In addition to housing finance, there are various other services and facilities offered by a private bank. Wealth management services, debit and credit cards, different types of accounts, insurance etc.