GE Money Home Loans Review

Company Profile

Under the global umbrella brand of GE Consumer Finance, GE Money has a formidable presence in consumer finance in more than 50 countries with a variety of product offerings which includes Home Loans. The company’s total assets are worth more than US $ 105 Billion.

Analysis

Loan to Value Ratio-

GE Money Home Loans can be applied for a maximum of 85% of the property value subject to credit discretion and are accompanied by a specially-designed insurance cover. This feature is very much comparable to other products in the market; banks like Axis and HDFC too offer loans up to 85% of the property value. Few banks are more lenient when it comes to loan to value ratio.

GE Money offers Credit Shield Insurance from Max New York Life Insurance wherein insurance company pays the loan outstanding (up to a max of 20 lakhs) to GE Money in case of death of primary applicant. If opted for, the insurance premium gets inbuilt into the EMI’s.

Tenure-

GE Money Home Loans are available for a maximum tenure of up to 20 years (if Salaried) or 16 years (if Self-Employed). Further, the maximum age on maturity of the loan should be 60 years (if Salaried), or 67 years (if Self-Employed).

Interest Rates-

GE Money Home Loans are available only at a floating rate of interest. This is subject to change as the market rates change.

Tax Benefits-

A loan seeker can avail the following Tax Benefits on a Home Loan from GE Money:

• As per Sec 24(b) of the Income Tax Act, 1961 a deduction of up to Rs.1,50,000 is permissible towards the total interest payable on the home loan towards purchase/construction of house property can be claimed while computing the income from house property.

• Additionally, as per the newly introduced Sections 80C read with section 80CCE of the Income Tax Act, 1961 the principal repayment up to Rs. 1,00,000 on your home loan will be allowed as a deduction from the gross total income subject to fulfillment of prescribed conditions.

Processing Fee-

The processing fee covers the cost of technical valuation and title search report of an individual’s property along with other administrative costs that are involved in the processing of the loan.