Loan EMI Calculator

Recalculate your Loan EMI and Total Interest Due in a snap!

Your Loan Details

Use the slider to alter your Loan details.

Loan Amount
Loan Amount:
Interest Rate in %:
Processing Fee: (% of loan amount)
Would you like to make Pre-payments?
Pre-payment Frequency
Pre-payment starts in
Pre-payment amount
Loan Completion Month
Pre-payment Fee %
Pre-payment Applies to

Your Monthly Loan EMI: Rupee image 4,292

Monthly amount paid to your Loan provider

Break-up of all total amount payable
Loan Amount
25000Rupee image
Total Interest Due
756Rupee image
Processing Fee
500Rupee image
Loan Amount Via EMI
500Rupee image
Loan Amount Prepaid
500Rupee image
Total Interest
500Rupee image
Processing Fee
500Rupee image
Pre-payment Fee
500Rupee image
Total Amount Payable
26252Rupee image
Your loan details as specified by you
Loan Amount
25000Rupee image
6 Months
Interest Rate
Processing Fee
25000Rupee image

Your Amortization Details (Yearly/Monthly)

Your debt repayment schedule in regular instalments over a period of time.

amortization chart
Principal Paid Interest Paid Outstanding Loan BalanceO/S Balance(Without Pre-payment) O/S Balance(With Pre-payment)
Year Principal Paid(A) Interest Paid(B) Total Payment (A+B) Outstanding Loan Balance Pre-payment
Pre-payment Analysis

(We've broken it down for you!)

SummaryTotal AmountTenure
Without Pre-payment Rupee image 47,87,42610 yrs
With Pre-payment Rupee image 45,33,7238years 4months
YOU SAVE rupee0 YOUR TENURE REDUCED BY 1 years 8 months
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How to use's EMI calculator to understand your loan repayment

Know your EMIs in seconds with BankBazaar’s unique online financial tool - the EMI Calculator! Get a wealth of information pertaining to your loan payments in quick, easy steps to save time and money and make the most-informed choice to successfully meet your financing needs.

Simplify Loans with BankBazaar’s EMI Calculator:

BankBazaar’s EMI Calculator helps calculate the monthly instalments payable on any of your loans whether a personal loan, auto loan or home loan.

Calculating EMIs can be a tedious and confusing process. However, BankBazaar has an exceptional and simple EMI Calculator which lets you know the precise amount of your monthly EMIs instantly.

What BankBazaar’s EMI Calculator Can Do For You!

Help you arrive at EMIs in seconds - This calculator will help you calculate exactly how much money you need to pay towards your loan each month.

Simplify calculations - Determine EMIs accurately with minimal effort to reduce stress and confusion caused by tedious manual calculations.

Help plan your finances - Compare possible EMIs by varying the key loan parameters of tenure, amount and interest rate to determine which loan plan is the most affordable to you.

Be it a home loan, personal loan or car loan, now you can easily calculate your EMIs using this user-friendly tool offered by BankBazaar.

Using this calculator is very easy. All you need are the following loan details:

  • Loan amount - this is the amount you need to borrow
  • Interest rate - the interest rate for the chosen loan scheme
  • Tenure - the loan period
  • Processing Fee (if any) - the amount charged by the lender to process the loan
(If you don’t have this information at hand, you can obtain it navigating to your chosen bank’s loan page under the section ‘Select a product to begin’, featured under the calculator).Once, you have these details, use the sliders to set the required parameters for the loan amount and tenure. Then, input the interest rate and processing fee in the relevant boxes...

...and Voila!

The loan EMI calculator will instantly reveal your monthly EMI amount payable on the loan!

It will also provide a clear, graphic and tabular break-up of your loan repayments, using the EMI so calculated. In addition an amortization table is created which gives you a detailed overview of your repayment schedule. A cut above the rest, BankBazaar’s EMI Calculator delivers more than you expect.

BankBazaar has customised its EMI Calculator to suit different loan schemes. To calculate your EMIs on your personal loan, navigate to the Personal Loan EMI Calculator provided under the sites ‘Financial Tools’ section. Similarly, you can calculate EMIs on your auto and home loans using BankBazaar’s Car Loan EMI Calculator and BankBazaar’s Home Loan EMI Calculator, respectively.
Should you find yourself flush with cash, you may decide to prepay your loan (i.e. pay an extra amount towards principal). If so, you can calculate your new EMIs by adjusting for the amount you wish to prepay. This will let you know how much interest you save by reducing the principal outstanding. (interest is calculated on the principal outstanding)
Pick the most affordable loan by comparing EMIs for different loan tenures. This can be done by altering the loan period in the calculator; keeping the loan amount and interest rate the same. By lengthening the loan period for a chosen loan scheme, the EMI amount can be reduced. Using the calculator, you can quickly compare EMIs for different tenures and choose the one that most suits your budget.
Understand loan repayment schedules by altering the interest rate, keeping loan amount and tenure the same. In case of fixed rate loans, interest rates remain constant over the loan tenure. In this case, EMIs also remain constant. This is usually the case with car loans and personal loans.However, in case of floating rate loans, interest rates can vary with movements in market rates. In this case, EMIs will change. This is particularly beneficial for home loans.Input the new interest rate in BankBazaar’s EMI Loan Calculator to compare EMIs before interest rate changes and after. A new amortization schedule is also generated to reflect changes in EMIs.
EMI stands for Equated Monthly Instalment which is a fixed amount of payment a borrower has to make to the lender at a specified date on monthly basis. EMIs consists of your principal loan amount and interest amount, payable every month.
Although the EMI remains fixed for every month, the amount paid towards principal and interest changes. The interest component constitutes a major portion of the EMI payment in the initial stages. However, as the loan period progresses and the principal outstanding reduces, the portion of interest repayment decreases. This happens until the end of the loan period when the entire loan amount has been paid off.
The mathematical formula for calculating EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]. (P is the principal loan amount, R rate of interest per month and N is the the number of monthly instalments). Manual calculations are too complicated to perform accurately, which is why many borrowers are left confused after availing a loan. Understanding this pain-point led BankBazaar to develop one of the easiest and most user-friendly online Loan EMI Calculators.
You can view your loan amortization schedule at BankBazaar by using its EMI Calculator. A loan amortization table is a systematic and tabular display of your loan payment process. The table shows the break-up between the interest component and principal component of a particular EMI payment, enabling you to have a clear idea about the period of payment, interest and principal payments, and the outstanding loan amount over the entire loan tenure. This table can be very helpful for you, in case you want pre-close the loan.
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Further Reading

Top picks from our Financial Expert

News About EMI Calculator

  • RBI waiting for US Federal Reserve decision

    Posted on 27th November 2015

    The US Federal Reserve make hike rates in December this year, the first move of its kind since 2006. The RBI plans not to modify the interest rate or cash reserve ratio (CRR) until it sees the impact following the move by the US Federal Reserve.

    Since January this year, the RBI has cut the policy rate 4 times, and it now stands at 6.75%, down from 8%. On September 29th, the RBI cut 50 basis points through the fourth monetary policy review.

  • India to witness a growth rate of 7.5%

    Posted on 26th November 2015

    A recent report published by Barclays Bank reveals that there is a possibility that India will experience a growth rate of 7.5% in the July-September quarter. Simultaneously, the Reserve Bank of India is also expected to announce 50 basis points cut in interest rate in the first half of 2016. As per the global financial services firm report, India's macroeconomic data is largely favorable and inflationary pressures are predicted to stay lower for a considerable period of time. The report further stated that in October India's goods trade deficit was USD 9.8 billion and in September, the services trade surplus was “resilient” at USD 5.9 billion.

  • Indian Government to Reduce Stress in the Banking System.

    Posted on 24th November 2015

    Arun Jaitley, the finance minister of India, recently announced that the initiatives taken by the Indian government and the Reserve Bank of India to address the issues in prevalent in the banking sector will help reduce stress in the banking system in the coming days.

    The finance minister also promised to resolve the issue of non-performing assets (NPAs) in public sector banks and take coordinated steps to deal with the stress in public sector banks. The health of public sector banks (PSUs) gained importance in the discussion.

    The finance minister also said that the Gold Bond schemes will released in tranches in the market. He also added that, going forward, the Indian Government will sell shares in some of the state-governed companies.

  • RBI Announces Possibility of Repo Rate Cuts in 2016

    Posted on 23rd November 2015

    The RBI has announced that there could be further cuts in the repo rates in the first half of 2016. The rate cuts could be a reduction of up to 0.50%. This rate cut has been attributed to India’s macroeconomics being judged as being reasonably favourable along with projections of lower inflation over the coming period. According to a report by Barclays, the lower inflation, along with the stable Indian rupee is expected to spur the economy and promote an environment for growth. The report also noted that the deficit of the country in goods trade stood at USD 9.8 billion as of October 2015, while the trade surplus stood at USD 5.9 billion as of September 2015.

  • RBI likely to Cut Rates by 25 bps

    Posted on 20th November 2015

    According to a global brokerage firm, the Reserve Bank of India (RBI) may cut its lending rate by 25 bps in the current fiscal year. The Swiss brokerage UBS also said that a further rate cut of 50 bps by the central bank is likely in the next fiscal year.

    RBI governor, Raghuram Rajan, during the September meeting, had announced a repo rate cut of 50 bps, which reduced the overall lending rate to 125 bps so far in 2015. Retail inflation increased to 5% in October, as a result of a hike in the prices of pulses, which went up by over 33%. However, the inflation rate is still below RBI's estimate of 5.8% in January 2016.

    The wholesale price index in October increased from September’s minus 4.54% to minus 3.81%. However, it remained in negative territory for the 12th consecutive month. The hike in both the inflation rates has lowered RBI’s chances of rate cut in its December meeting.

  • Pharma Companies Devise Cheaper Finance Models

    Posted on 18th November 2015

    Pharma companies, faced with mounting criticism over the high price of lifesaving drugs,are devising cheaper financing models. This will not only allow the companies to protect their key products from compulsory licensing and price controls, but also generate sales by making treatment more affordable.

    A number of companies are experimenting with offers such as discounts, free diagnostic tests, equated monthly installments, and even tailor-made insurance schemes. These steps have been undertaken in order to make treatment affordable at a time when drugs are being sold at high prices. In some instances, companies also offer low-priced drugs. Some companies also tie up with medical financing firms to make high-priced medication affordable for the common masses.

  • RBI’s current interest rates at 6.75% comfortable

    Posted on 11th November 2015

    Raghuram Rajan, RBI Governor, said the central bank is comfortable with the current interest rates, with the government expressing hope for further cuts.

    In September this year, RBI in its bi-monthly monetary policy review slashed interest rate by 0.5%. This was much higher than the expectations for a rate cut of 25 basis points. The benchmark repurchase (repo) rate subsequently came down from 7.25% to 6.75%, which was the lowest in four-and-half-years. It also included a larger-than-expected 50 bps cut in late September.

  • Small Savings Interest Rates Lowered Will Give Banks a Fair Chance

    Posted on 9th November 2015

    With the recent cuts in the key interest rate from the Reserve Bank of India, and many banks following suit and reducing their lending rates as well as their fixed deposit rates, this act has now forced many investors to go to small savings in post offices and public provident fund. Banks are now asking the government to ensure that post offices and other government small savings schemes, change their rates as well to level the playing field. Using online calculators one can check on the rates offered by banks and post offices and other government small savings schemes to decide on the best growth they will receive.

    • Need Pricing Parity on Home Loans: SBI Chief

      Posted on 6th November 2015

      Arundhati Bhattacharya, State Bank of India (SBI) chairman said that regulatory arbitrage enjoyed by pure-play home financiers should be ended. Speaking in the sidelines of the Credai-BankCon summit, the SBI Chief said there should be pricing parity on home loans The advantage of this arbitrage is that financiers can lend below their prime lending rates, in which case banks cannot.

      She also mentioned that regulatory arbitrage makes the market uneven for home financiers and banks. The main reason, according to her, is higher cost of the funds paid by housing finance companies. She also pitched in the need for teaser loans in the home loan sector, in order to help borrowers reduce the burden of interest rates.

  • Lakshmi Vilas Bank Slashes Lending Rate

    Posted on 5th November 2015

    South-based private sector lender Lakshmi Vilas Bank (LVB) cut its minimum rate of lending (or base rate) by 0.25%. The rate has come down from 10.95% to 10.70%. The rate cut is a result of the Reserve Bank’s 50% rate cut at the previous policy announcement.

    Rakesh Sharma, the bank’s managing director and chief executive said that the latest rate of interest cuts will help boost the investment options for its retail, export, and MSME customers. The rate cut came following similar moves by its other market rivals, A number of the other lenders have also cut their offerings aggressively after credit growth has is in single digits, at multi-year lows.

  • Inflation and low interest rates hopefully to remain low says Finance Minister

    Posted on 2nd November 2015

    Finance Minister Arun Jaitley, said he was hopeful of the low interest rates and decrease in inflation reviving the economy. With the steps taken by the RBI in regards to repo rate cuts, and other positive steps the revival of the economy looks positive. The Finance Ministry also plans to announce the steps they are involved in to take into consideration the debts the power industry is facing. The RBI earlier reduced the rate to a 4 year low of 6.25% which was the biggest move made, and have affected the interest rates of loans and deposits for the customer.

  • Online Credit is on the Cards for the Reserve Bank of India says Raghuram Rajan

    Posted on 27th October 2015

    Usage of online platforms for all needs has increased in the country, today a user needs to go online and he/she can purchase anything from groceries, phones, pay their bills, clothing and even financial products like insurance, mutual funds etc. The Reserve Bank of India is also planning to make it’s way into the online field to make it simpler for customers, said the governor Raghuram Rajan. He also stated that there are possibilities, to allow the purchase of financial products on credit from online platforms, the logistics and other details are being examined.

  • Decreasing Interest Rates - Helpful to the Investor or Not

    Posted on 26th October 2015

    With inflation dropping from 10%+ in 2013 to -5%, leading the Reserve Bank of India to cut their policy rates by 125 basis points earlier this year leading to changes in interest rate cuts from many banks. Both lending and deposit rates have seen changes due to these cuts. When compared amongst other emerging markets with lower inflation, India seems to be in a better position their interest rate declining rates of interest and growth recovery happening gradually. Investors if considering increasing their investments, then they would be allowing banking and financial institutions to benefit. The rate of interest decline helps the investor when trying to purchase any assets like, houses, automobiles, and durable consumer goods.

  • RBI cheers the markets yet again, base rate cut of 50 bps

    Posted on 22nd October 2015

    Ignoring the expert advice of a 25 bps cut in the base rate, the RBI governor announced a rate cut of 50 bps which has led to a jubilant market. The base rate touched a figure of 6.75% to kick start economic activity in the Indian markets. Only two members suggested such a steeper repo rate cut while the rest six members were in favor of a lighter reduction of just 25 bps. However, those who were favor of the higher rate cut are of the opinion that with inflation rate coming down, a larger rate cut may even take the economy out of the present gloomy situation and lend the much-needed break.

  • Loans during festival are cheaper than even EMIs on credit cards

    Posted on 21st October 2015

    While judicious use of credit is a good financial strategy, loans offered by banks during the festive season are too good to be ignored. Whether it is buying a new electronic gadget or getting your hands on your favorite motorbike, banks are lending special personal loans for festivals which come at attractive rates of interest and charge nominal processing fee. Top among such banks are State Bank of India, Andhra Bank, and other private banks like ICICI and HDFC. Availing a personal loan for such purchases as mentioned above is better since loans offer longer tenures as compared to credit card EMIs. Also, the rates are comparatively better for personal loans than the rate charged on credit cards.

  • Reduced deposit rates of 25 basis points for Sundaram BNP Paribas Home Finance

    Posted on 20th October 2015

    The lending rate for home loans has reduced by 25 basis points by Sundaram BNP Paribas Home Finance, Term deposits both fixed and cumulative for non-senior citizens for a term of 12, 18, 48 and 60 months will earn an interest rate of 8% per annum which has been reduced by 0.25% per annum, and 24 and 36 month deposits will now fetch 8.25% per annum when compared to the 8.50% per annum. The rate for senior citizens will be a 0.50% higher than that of no senior citizens. Sundaram Home Finance, accepts longer than 5 years in fixed deposits even from trusts.

  • Finance Minister praises RBI’s move of cutting interest rates

    Posted on 16th October 2015

    India’s Finance Minister Arun Jaitley commended RBI’s move to slash interest rates over the past few months. He also mentioned that if banks pass the rate cut benefits to borrowers, it will in turn boost demand and growth. A part of this rate cut has been passed on by some banks, resulting in real estate witnessing an increased demand in housing properties. With the festive season right around the corner, the auto sales are also on demand. The minister further hopes that festivals will encourage auto companies to supply more models, thereby encouraging growth in the economy.

    With effect from January 2015, RBI has cut down on the rate of interest by 1.25% that amounts to 125 basis points.

  • Once in 18 months is what is expected when it comes to the repo rate cuts by the RBI

    Posted on 15th October 2015

    The repo rate is looking to just get one more reduction over the coming next 18 months, despite a slow moving economy and weak inflation. The next expected repo rate cut is expected to be in the second quarter of next year (April-June 2016) and will be a rate cut of at least 25 bps say a pool of over 25 economists. If this repo rate will be reduced and come into effect in April-June 2016 then, customer of on-going loans and new loans can expect a further fall in their EMIs. With the use of the available EMI calculators customer can stipulate the difference the 25 basis points cut will make to their EMIs.

  • No more changes in the RBI repo rate for 2015 & 2016 says Standard Chartered Bank

    Posted on 13th October 2015

    The Senior Economist Global Research of Standard Chartered Bank Anubhuti Sahay says the may not be a further cut to the repo rate of the Reserve Bank of India if the average growth of the Index for Industrial Production or IIP has been very uneven since October 2012. With the removal of the gems and jewelry contributions then the growth will be even lower by at least 20% - 25%. Even the CPI or consumer price index showed no surprise, with the exception of the food inflation which was marginally higher. With the way the financial situation is currently the further cut in repo rate for 2015 & 2016 is very unlikely.

  • Why has there been no difference to your loan even with rate cuts by banks?

    Posted on 12th October 2015

    Despite major banks cutting down their lending rates after the repo rate cut of the RBI, borrowers feel like they have not translated into lower interest rates for them. In September 2015 the Reserve Bank of India cut its key interest rate by 50 basis points market expectation were just a quarter of this, after this rate cut home loans fell by 30 basis points and auto loans fell by 25 basis points. A spread is the excess lending rate charged on base rate. Banks are now charging an increase in spread rate which in turn helps lenders protect their net interest margins. With all the EMI calculators being available online today you can see how the rate cut and the rate offered offered by your banks affects your EMI for your auto or home loan.

  • RBI expects banks to pass rate cut benefits to consumers

    Posted on 9th October 2015

    Following its announcement to reduce repo rates by 0.50% last week, the RBI in a statement said that it hopes that banks will follow suit and reduce their lending rates, passing on the entire benefit to customers. A majority of banks have reduced their benchmark lending rate by just 0.25%, thereby withholding benefits from consumers.

    The RBI also indicated that the government is looking into a suggestion of linking interest rates on small savings to the rates of G-sec for similar periods. A similar suggestion regarding charges on electronic payments was also being considered.

  • State Bank of Hyderabad revises base rates

    Posted on 8th October 2015

    State Bank of Hyderabad cuts its base rate by 20 basis points. The current rate is 9.75 which is effective from 8th October, 2015. The rate change happened after the RBI announced the reduction of the policy rates. The interest rate on home loan is reduced and the EMI for a 30 year period will be Rs.860 per lakh.

  • Lending rates cut by Syndicate Bank, Karur Vysya Bank, UBI and Indian Bank

    Posted on 7th October 2015

    Following in other banks’ footsteps and the RBI of cutting their lending rates, banks like Syndicate Bank, Karur Vysya Bank, UBI and Indian Bank have also reduced their lending rates. UBI revised their rate down by 35 basis points, and Indian Bank lending rate is now 9.65% as opposed to the earlier 9.95%, Syndicate Bank changed their interest rate by 10%. Karur Vysya Bank has reduced their rate by 0.35% to a 10.40%.

    Earlier other banks as well had reduced their lending rates, Bank of Baroda, Punjab National Bank, ICICI Bank, Axis Bank and UCO Bank.

  • Oriental Bank of Commerce decides to cut interest rates

    Posted on 1st October 2015

    Oriental Bank of Commerce decided to cut their base interest rates from 9.9% to 9.7% with effect from today 1st October 2015 following the Reserve Bank of India. Base Interest rate is the minimum rate at which a bank is allowed to lend. The Reserve Bank of India cut its repo rate by 50 points, and has led to other banks following suit.

  • Reduced rates from UCO Bank by 25 basis points

    Posted on 1st October 2015

    The UCO Bank lender based in Kolkata has also reduced their lending rates. After the reduced repo rate by the Reserve Bank of India, UCO Bank has decided the cut their interest rate by 25 basis points. The new rate of 9.7% will come in effect on 5th October 2015. Using various online EMI calculators you can see the changes to your EMIs. Axis Bank, and SBI also have reduced their rate of interest following the reduced repo rate of the RBI.

  • Axis Bank loans cheaper by 0.35% after it cuts its base rate

    Posted on 1st October 2015

    Following the RBI repo rate cut Axis Bank has decided to reduce their base rate by 0.35% making the new rate of interest 9.5% effective 5th October 2015. This cut will now reduce your EMIs drastically for customer who have taken loans on floating rate basis.

    SBI as well has reduced their rates, and ICICI Bank and HDFC Bank are soon to follow suit with their rate cuts as well.

  • After RBI repo rate cuts SBI take the lead to lower EMIs

    Posted on 1st October 2015

    After RBI repo rate cuts the country’s largest bank State Bank of India has been the first to lower the rates of interest. The rate will be effective from 5th October 2015, this action of the SBI, will also act as a pressure situation for all other banks to reduce their rate as well. The rate cut of almost 40 basis point cut making their base rate to 9.3%. The reduction follows a 50 basis point reduction by the RBI. Now you can use the online calculators available for you to re-check your EMIs and interest payable to banks.

  • Key interest rates down by 50 basis points by the RBI

    Posted on 29th September 2015

    The Reserve Bank of India, has cut down the basis points for key interest rates by 50 points making the new rate 6.75%. This is the lowest rate since May 2011. The repo rate as well has come down by 50 points to 6.75%. The reason of the decline stated by the RBI Governor mentioned that the decline in exports, industrial momentum not being up to expected speed and deficiency in rainfall and the economic activity as well remains weak.

  • Base rate cut by 0.10% for State Bank of Mysore

    Posted on 25th September 2015

    The minimum lending rate of State Bank of Mysore is now cheaper by 0.10%, the current rate is now 9.9% from the previous 10%. The base rate is the minimum lending rate and banks are not allowed to lend below this rate. In its last monetary policy review the RBI left the the short term lending rate the same at 7.25%.

  • Vijaya Bank reduces base rate from 10% to 9.85%

    Posted on 10th September 2015

    Vijaya Bank follows up its June rate cut with its latest reduction in base rates to 9.85%. This represents a decrease of 15 basis points from the earlier rate of 10%. Vijaya Bank had earlier instituted a reduction of 25 basis points in June. The rate was, at the time, reduced to 10% from 10.25%.

    The latest reduction will serve to stimulate borrowing activity from retail customers. With the RBI governor Raghuram Rajan urging banks to pass on benefits of the repo rate cut to customers, more banks are taking to reducing their base rates. Lending activity is expected to increase in the second half the year, which is traditionally the time when retail customers borrow given the festival and wedding seasons.

    HDFC Bank and Canara Bank also instituted cuts on their base rates. With more banks following this trend, floating rate loans are bound to get cheaper. This bodes well for big ticket borrowers viz. home loan customers who can save from reduced EMIs.

  • Canara Bank follows HDFC Bank, revises base rate by 10%

    Posted on 3rd September 2015

    Fast on the heels of HDFC Bank, Canara Bank effected a reduction in its base rate (effective 3rd Sept. 2015). Although not as sharp a decrease as HDFC Bank (reduction of 35 basis points), Canara Bank’s rate cut will provide a measure of relief to its loan customers who will benefit from lower interest rates and lower EMIs.

    EMI calculators available to customers, online, enable borrowers to calculate potential savings from lower interest rates on their loans. Canara Bank’s new base rate stands at 9.9% from its prior rate of 10%.

    RBI governor Rajan has been vocal about the need for banks to pass on the benefits of repo rate cuts to customers. Other banks are expected to follow suit in the coming months.

  • HDFC Bank loan EMIs set to reduce with a 35 basis point reduction in base rate

    Posted on 3rd September 2015

    HDFC Bank lowered its base rate from 9.7% to 9.35% i.e. by 35 basis points. This move comes off the back of lowered fund costs and encouragement from RBI governor Rajan to pass on benefits of lowered repo rates to customers.

    Customers for loans based on HDFC Bank’s base rate viz. home and auto loans which form a huge chunk of a lending bank’s loan book, will benefit from lower EMIs. Similar loans from the bank’s peers will appear less competitive. HDFC Bank faces stiff competition from SBI and ICICI Bank who will now be compelled to reduce loan rates as well in order to stay competitive ahead of the festival season.

    Existing loan customers with floating rate loans can account for higher savings from reduced EMIs. Free online financial tools i.e. EMI calculators are available to customers either at the bank’s website or third-party financial providers’ websites to help in recalculating new EMIs and savings thereon.

  • Corporation Bank slashes base rate by 10 bps

    Posted on 24th August 2015

    The Corporation Bank cut its minimum lending rate or base rate by 10 basis points on Thursday. The state-owned bank informed top stock exchanges in the country that it will slash its base rate from 10% to 9.9%. The latest base rate cut will be effective from August 24. In its last revision of base rates on June 1 this year, Corporation Bank slashed its base rate from 10.25% to 10%.

  • RBI rate cut in the offing next month: HSBC

    Posted on 24th August 2015

    The Reserve Bank of India is likely to announce a rate cut by 25 basis points in September owing to falling price pressures which have been “far more than expected”, experts stated in a latest HSBC report.

    Food prices have been plummeting across all sub-groups, CPI and WPI measures, on both an annual and sequential basis, according to the global financial services firm. Also, since the amount of rainfall the country has witnessed this year has been 10% below normal, its impact has been “non-disruptive” while fuel inflation has eased, the experts stated in the report.

    All the aforementioned factors are likely to lead to an announcement of a rate cut in the upcoming policy meeting on September 29th, opined HSBC Chief Economist India Pranjul Bhandari in a research note. As per the latest official data, retail inflation (CPI) fell to a record low of 3.78% in July this year. The wholesale price index-based (WPI) inflation also fell to a historic low of (—)4.05%.

    HSBC, in its report, listed out two factors which could come in the way of the expected rate cut next month. First, the rupee, which has been depreciating (2.3% against dollar owing to developments in China) could see a further slide due to an anticipated Fed lift-off in September. Also, a large payback in August inflation could result in RBI staying away from a rate cut. According to experts, if the overall period in September remains volatile, RBI may announce the rate cut only in the fourth quarter. In his third bi-monthly policy, RBI Governor Raghuram Rajan, left the the cash reserve ratio (CRR) unchanged at 4% and the repo rate unchanged at 7.25%. The Reserve Bank of India slashed the policy rate by 75 basis points or 0.75% since January.

  • Oriental Bank of Commerce cuts its lending rate

    Posted on 18th August 2015

    Oriental Bank of Commerce slashed its minimum lending rate by 0.1 percent to lower EMIs for borrowers of the bank. The new bank rate will come to effect from 17th August, 2015. The current base rate is 9.90 percent. With this reduction all the loans will become cheaper by 0.1 percent. The base rate change came into effect after the RBI benchmark rate remained unchanged in the monetary policy review on 4th August, 2015. RBI has kept the repo rate- the short term lending rate at 7.25 percent, cash reserve ratio at 4 percent and statutory liquidity at 21.5 percent

  • ICICI Bank will lend at Base Rate in rural areas

    Posted on 11th August 2015

    All those residing in rural areas who need a loan can now rejoice as India’s largest private lender – ICICI Bank – has decided to offer loans of up to Rs.15 lakh at the base rate of interest (which is currently 9.70%) under its new “ICICI Bank Saral-Rural Housing Loan” product range.

    ICICI Bank will be offering rural loans from between Rs.5 lakh and Rs.15 lakh, for tenures between 3 and 20 years, through 189 of its branches at a floating rate of interest – which will be revised depending on movement in the base rate across the tenure of the loan. It should be noted that the interest rate is not fixed as a constant amount throughout the tenure of the loan, but will go higher and lower depending on the base rate.

    Banks are legally bound to lend 40% of their annual fresh advances to the underprivileged, and loans of up to Rs.20 lakh in rural areas count as priority sector lending. A shortfall in this results in the amount getting invested in low-yield rural infrastructure development funds.

    The bank already lends to women at the base rate of 9.70%, which is the minimum lending rate. Even the State Bank of India provides home loans to women at a similarly low rate.

  • Rates will remain intact! Chances of a rate cut if banks cut EMIs!

    Posted on 6th August 2015

    RBI Governor, Raghuram Rajan confirmed on Tuesday that there will be no rate cuts from RBI as of now and it will remain intact. It was also revealed that a further rate cut will happen only if banks reduce their EMIs. RBI has reduced their rates thrice since January 2015 and has coaxed banks to take the same initiative. Though many banks did participate by lowering their base rates, RBI expects the banks to reduce their EMIs again. The governor suggested that the banks reduce their rates September-October. But for now, borrowers will have to wait for a while for the EMIs to come down as RBI is in no hurry to reduce lending rates.

  • SBI confirms! No rate cuts in the near future!

    Posted on 6th August 2015

    Borrowers of SBI might have to wait if they were waiting for a rate cut. SBI confirmed on Tuesday that there won’t be any more rate cuts for the borrowers in the near future. RBI has had three rate cuts until now this year and has coaxed banks to cut down its rates. But the Chairperson of SBI Bank made it clear that they didn’t see any reason to reduce rates and it will remain the same for quite a while.

    SBI Chairperson also admitted that they reduced the rate by 30 basis points when the central bank cut the policy rate by 75 basis points and didn’t see any reason for further rate cuts as rate cuts depends on many factors. Since there are no rate cuts, there will be no reduction in EMIs for the borrowers.

  • Policy rate unchanged at 7.25%, as RBI continues to tackle inflation

    Posted on 4th August 2015

    The apex bank of the country, Reserve Bank of India, has been putting all checks and balances in place to tame the inflation dragon. The bank has decided to hold its policy rate at the current 7.25% in order to counter the spike in food prices that sent inflation soaring to an eight-month high.

    RBI has been taking several financial steps towards bringing down the rate of inflation in India. Food inflation, however, has been one of the starkest forms of inflation in the country for quite some time now. The decision of holding the policy rate by RBI is absolutely in-line with what the market was expecting from the central bank. Slight changes in interest rates can influence customers for home loan and car loan segment and as such the decision to keep policy rate at 7.5% is a welcome move.

  • SBI Foresees No Rate Cuts In Monetary Policy Review Due Next Month

    Posted on 23rd July 2015

    Chairperson Arundhati Bhattacharya, State Bank of India (SBI) confirmed to PTI that one of India's top money ending companies is not expecting any rate cut, in the monetary policy review due on Aug 4, by Reserve Bank of India, lead by a higher retail inflation.

    She added that CPI has risen as compared to the negative WPI, lead by the food prices and that the RBI has been benchmarking the food prices to the to the CPI, hence making it unlikely for rate cuts.

    Retail inflation in June saw an 8-month rise of 5.4%, while the Wholesale Price Index (WPI) based inflation dropped -2.4% in the same month.

    The central bank on the other hand would observe the data that includes inflation along with the season's data before making change in policy rates. They also added that the three rate cuts would be observed for banks to pass on the advantage.

    RBI has made a total reduction of 0.75% so far, in policy thrice during 2015. RBI reduced repo rate (short-term lending rate) by 0.25% to 7.25%. It has cut policy rates thrice, during 2015. The total reduction has been 0.75 per cent while banks have passed on an average 0.3 per cent to customers.

  • State Bank of Hyderabad Services, Made Available on Android

    Posted on 23rd July 2015

    State Bank of Hyderabad launched its very own mobile application, available on the Android smart-phone platform, on Friday, last week. The android app, SBH Touch allows its users to use various internet banking products and facilities. The launch was formally announced through a press release by Santanu Mukherjee, MD, State Bank of Hyderabad.

    The app is available for free download from the Google Play Store. Besides regular internet banking services the app allows its users to locate bank branches and ATMs through Google Maps, EMI calculator and know loan interest rates and deposit interest rates applicable at the time.

    Besides calculating loan EMIs, the app also features Fixed Deposit and Recurring Deposit calculators. State-wise bank holidays and quick contact information is available on the app along with provision for customer feedback.

  • State Bank of Hyderabad reduces its base rate

    Posted on 16th July 2015

    State Bank of Hyderabad (SBH) has changed its base rate from 10.05% to 9.95% with effect from today 16th July 2015. The SBH Asset Liability Management Committee, headed by Santanu Mukherjee, Managing Director, decided to push the rates downwards, following the announcement of the policy rates by the Reserve Bank of India. The rate of interest on your home loan shall also decrease, making it Rs. 874/lakh for a 30 year loan period. SBH has realigned its interest rate from time to time in lieu of many conditions such as changing interest rate environment, cash liquidity in the system and so on.

  • The RBI may cut its benchmark rate by 0.25%

    Posted on 14th July 2015

    The Reserve Bank of India is expected to cut benchmark rate by 0.25% in its upcoming policy review meeting, if monsoon rain becomes normal. The prediction is made by the brokerage firm, Bank of America Merrill Lynch. According to Bank of America Merrill Lynch, the lending rate cut plays a crucial role in cyclical recovery of the Indian economy by the end of 2015. Already, the central bank (RBI) had cut its repo rate by 0.25% in its last policy review on 2nd June for the third time.

  • Bank of Baroda reduces its base rate by 0.1%

    Posted on 10th July 2015

    Bank of Baroda, the second largest state-owned bank in India, reduced its base rate by 0.1% on Thursday. The bank reduced its base rate by 10 basis points to 9.90% from its previous rate of 10%. Simultaneously, the Bank of Baroda also reduced its benchmark prime lending rate (BPLR) to 14.15% from its earlier rate of 14.25%. It is expected that the cut in base rate announced by Bank of Baroda will bring down the equated monthly instalments (EMIs) for the borrowers. All loans liked to bench mark rate are expected to come down by 0.10%.

    Prior to Bank of Baroda, the State Bank of India was the first bank to announce cut in base rate in the previous month, following the Reserve Bank of India mandate on rate cut. SBI reduced its base rate by 15 basis points to 9.7%. Likewise, HDFC Bank, ICICI Bank and Allahabad Bank also reduced its base rate recently.

  • Central cooperative bank to speed up sanctioning of housing loan

    Posted on 7th July 2015

    Central Cooperative Bank of the Salem District has proposed to set up a headquarters for quick sanctioning of housing loan to its member. This decision was taken after the meeting with R. Elangovan, Chairman of the bank.

    At the meeting, R. Elangovan said that loan assistance will be tuned to Rs.30 lakhs towards construction of new house for the members and Rs.20 lakhs will be given as house mortgage loan. He also suggested to increase the target for crop loan by Rs.100 crores for the crop season.

    During the current year, the bank had disbursed loan of Rs.432.05 crore under various heads to its members. Rs.33 lakh was given as housing loan and Rs.1.33 crore as house mortgage loan.

    The meeting was attended by A.K. Sivamalar, Managing Director of the bank, S. Tamil Selvan, General Manager in-charge and other officials.

  • “Project Tatkal” launched by State Bank of India

    Posted on 7th July 2015

    State Bank of India, the largest lender in the country launched a new initiative titled “Project Tatkal” to expedite home loan application process and provide doorstep services. The new project aims to provide loans within 10 days of receiving the completed application form along with all supporting documents.

    Project Tatkal hopes to provide better customer service by fast-tracking the entire application process and will be implemented at large centres which have a sizeable home loan business. To cater to its three million home loan customers, the bank has also introduced an online customer acquisition solution (OCAS) for immediate e-approval of home loan applications. The Bank has a home loan portfolio of Rs 16, 60,000 crore and this initiative is aimed towards helping the bank improve its customer base and service.

  • Kotak Mahindra joins the rate cut bandwagon! Slashes base rates by 10 basis points!

    Posted on 2nd July 2015

    Kotak Mahindra is the new bank in town to cut down the base rate. The private sector bank reduced its base rate by 10 basis points causing it to drop to 9.75% p.a. from 9.85% p.a.The loans related to base rates will drop down thus causing the loan EMIs to come down. The rate cut will be effective from 2nd July 2015. The rate cut comes after many banks slashed their base rates and lending rates.

  • Lakshmi Vilas Bank follows the Base Rate Slash Suit

    Posted on 1st July 2015

    RBI’s directive of slashing interest rates as of January 2015 has brought forth a second reduction by southern financial institution Lakshmi Vilas Bank.

    In effect from July 1, 2015, the minimum lending rate will be 10.95%, as opposed to 11.10% since April 2015. This has effectively lead the bank to bring down its rates by 30 basis points. Consequently, loans, EMIs, fund-based credits will also see a sweeter and favourable decline in their interest rates. The bank might see a boost in investment options and help retail and MSME customers.

    The bank still has a long way to go to completely get the 75 basis points reduction as imposed by RBI. Additionally, the lowest rate currently in the market is 9.70%, which makes it a steep competition. But again, the adage, “slow and steady wins the race” has stood the test of time.

  • Base rate slashed by Citibank, a cut of 15 bps

    Posted on 1st July 2015

    Following the footsteps of almost all major public-sector banks, Citibank has now announced a base rate cut of 15 bps in its lending rate. After the apex bank of India, the RBI announced a repo rate cut of 25 bps sometime earlier this financial year, almost all public sector as well as private sector banks have announced base rate cuts.

    Citibank is the first foreign bank to cut its base lending rate after RBI’s announcement. The rate cut for the bank is driven by falling rate of interest reflected in lower cost of deposits.

  • Axis bank cuts the lending rate now at 9.85%

    Posted on 29th June 2015

    The India’s third largest private sector bank has revised its lending rate by 10 bps from 9.95% to 9.85% per annum. The new rates are applicable from June 30, 2015. The effective rate will be applicable to the various fund based credit and credit limits linked to their base rate.

    The leading lender of India, State Bank of India and the private sector lender ICICI Bank and the HDFC Bank have the lowest base rate at 9.70%.

    The Reserve Bank of India cut 75 bps since January 2015 and the rate have partially been passed on to the borrowers by most big banks. The RBI Governor, Raghuram Rajan has been encouraging the banks to pass on the benefits of the repo rate cut to the end customer profusely. This means the loan EMI rate also will be coming down.

  • ICICI Bank Customers can rejoice! Bank cuts lending rates!

    Posted on 26th June 2015

    ICICI bank customers have a reason to celebrate as the bank is reducing lending rates(base rate) by 0.05% thus changing the rate to 9.7%.The rate cut will be effective from June 26 2015.The rate cut in the lending rates will lower the loan EMI rates. The loans related to base rates will come down. The rate cut by RBI has acted as a catalyst for the rate cuts by the other banks.

  • Interest rate to be cut by another 125 bps, Says RBI Adviser

    Posted on 22nd June 2015

    The Reserve Bank of India intends to cut the interest rates by more than a percentage point as the inflation has slowed down.

    Arvind Virmani, a member of the central bank's technical advisory panel that gives recommendation to the governor Raghuram Rajan said that the consumer price inflation rate has declined by three percentage points in the past 12-18 months and this raising the real interest rate by 2 – 3%. He also added that it is safe to cut the policy rates by 2% points. This is including the 75 basis point reductions that were already announced earlier this year. Though no timeframe was provided for this change.

    The concern over inflation in India is because of this quarters rebound in oil prices and a forecast in below average monsoon rains on which agriculture is dependent on, which accounts to 15% of gross domestic product of India.

  • State Bank of Bikaner & Jaipur slashes base rate by 15bps

    Posted on 22nd June 2015

    The State Bank of Bikaner & Jaipur, an associate bank of State Bank of India (SBI), slashed its lending rate by 15 basis points from 10.10% to 9.95% on Monday.

    The revised rates will be effective from June 18 onwards, the bank stated in a filing to the Bombay Stock Exchange.

    Lending rate cuts will result in cheaper loans, thereby reducing Equated Monthly Instalments (EMIs) for the consumers. Several large banks cut their minimum lending rates after the Reserve Bank of India, in its second bi-monthly policy announcement, earlier this month, had slashed key policy rates for the third time since January.

    State Bank of India (SBI), India’s largest bank cut its base rate by 15 basis points (bps) to 9.70% after RBI governor Raghuram Rajan urged banks to do so during announcement of the monetary policy. Consequently, Allahabad Bank, Punjab & Sind Bank and Dena Bank announced rate cuts.

    Speaking at a meeting with Public Sector Unit (PSU) bank officials last week, finance minister Arun Jaitley said bankers assured the central government of more interest rates cuts in the next couple of days.

  • Yes Bank slashes base lending rate by 25 bps

    Posted on 22nd June 2015

    Yes Bank, fifth largest private bank in the country, cut its base lending rate by 25 basis points from 10.75 percent to 10.50 per cent on Friday, the first rate cut by the Mumbai based bank following three key policy rate cuts by the RBI (0.75 per cent) this year. The revised rates will be effective from June 22 onwards.

    Lending rate cuts will lead to cheaper loans and therefore, reduce Equated Monthly Instalments (EMIs) opted by the consumers. Yes Bank said the base lending rate cut is a result of the fixed deposit rate cuts of up to 25 basis points effective from June 17. Yes Bank's rate is, however, higher than its competitors. Chief executive and managing director of Yes Bank Rana Kapoor had indicated of the possibility of 0.25 per cent lending rate cut ahead of the meeting with finance minister Arun Jaitley recently.

    Big banks such as HDFC Bank and State Bank of India (SBI) announced two rounds of rate cuts since April, following RBI governor Raghuram Rajan’s observation that banks have not been passing the rate cuts to the consumers. The Reserve Bank of India and the finance ministry want banks to slash rates to ensure effective policy transmission to borrowers and thereby boost economic growth in the country.

  • Public Sector banks may slash rates further

    Posted on 17th June 2015

    The Honourable Finance Minister, Mr. Arun Jaitley held a review meeting with all public sector banks. In the meeting these government owned banks have promised to slash interest rates to a further minimum. After the RBI announces a cut in the repo rate, many banks have reduced their lending rates. However, some banks have still not announced rate cut and have promised to do it over the next few weeks.

    This will mean a rate cut for all loan borrowers which will reduce the interest on loan and their subsequent loan EMIs. The finance minister has also promised fund infusion to these banks in order to stabilize them after this rate cut.

  • HDFC slashes lending rate by 15 basis points

    Posted on 17th June 2015

    HDFC is the recent bank to have joined the rate cut bandwagon by slashing its lending rates by 15 basis points to 9.7 percent. The rate cut comes after the rate cut by SBI and other banks. The rate cut will be effective from June 15, 2015. This move will result in lower EMI rates for the customer. Loan rates that are related to base rates will also come down with this rate cut. The rate cut comes after the rate cut by 25 basis points by RBI earlier in the month of June.

  • Syndicate Bank slashes lending rate by 25 bps

    Posted on 10th June 2015

    After the repo rate cut announced by Reserve Bank of India, many banks have followed suit. Latest to cut its lending rate is the Syndicate Bank which has cut its base rate by 25 bps to 10%. The new rate is effective from June 8th. The bank has also lowered its Benchmark Prime Lending Rate, BPLR from 15.50% per annum to 14.25% per annum.

    This slash in the lending rate will lead to a slash in the rate of interest for loans which will lead to lower loan instalments for customers.

  • United Bank of India slashes lending rate

    Posted on 10th June 2015

    After the apex bank of India, the RBI reduced its policy rates by 0.25% almost all public sector bank have slashed their lending rates. United Bank of India announced a rate cut of 0.1%. The lending rate for the bank has now come down to 9.9% from 10%. Decrease in the lending rate will bring some relief to loan borrowers who can now enjoy a better rate of interest on their loans as a result of which their loan instalment amount will also come down.

  • Base Rate slashed by Federal Bank

    Posted on 9th June 2015

    Following the repo rate cut by the Reserve Bank of India, Federal Bank has slashed its minimum lending rate by 0.25 per cent. The new base rate now stands at 9.95 per cent. This cut in the lending rate is good news for loan borrowers who can now enjoy a lower rate of interest on their loans. Lower interest rates will in turn facilitate lower amounts of monthly instalments for loan borrowers. Customers can enjoy lower EMI amounts and save on the interest amount that they are required to pay each month.

    This rate cut from Federal Bank has come as a result of the bi-monthly policy review of RBI. Soon after this meet, a number of public sector banks, including the State Bank of India have reduced their minimum lending rates.

  • EMIs to go down as Allahabad bank and Central bank cuts base rate!

    Posted on 8th June 2015

    Andhra Bank recently announced that it’s going to reduce its base rate by 25 basis points which means that it’ll go from 10.25% to 10%. This will result in lower EMIs and there will be change in the loan rates that are linked to the base rates. Central bank has joined the rate cut bandwagon by reducing its base rate from 10.25 to 9.95%.

  • Allahabad cuts lending rate resulting in lower EMIs!

    Posted on 4th June 2015

    Nationalised bank Allahabad bank recently announced rate cuts which came shortly after RBI cut its key policy rate. The bank cut its base rate/minimum lending rate by 0.3%. The base rate has gone down from 10.25% to 9.95%. With this new rate cut, all loans linked to base rate will come down by a minimum of 0.3%.The change in the base rate will also result in lower EMIs on all loans offered by Allahabad bank that is linked to the base rate. The new rate cut by Allahabad bank has given its customers a great reason to rejoice.

  • RBI Announces Yet Another Rep Rate Cut – EMIs Set To Come Down

    Posted on 4th June 2015

    The Reserve Bank of India (RBI) has announce yet another cut, of 25 basis points, in the repo rates making it the third cut this year. The cut has reduced the lending rate to 7.25% which should now be transferred to the loan EMIs. The justification for this cut is that the inflation in the country is stable and won’t suffer through the summer rains.

    The governor of the RBI, Mr. Raghuram Rajan has said that he expects the banks to pass these cuts onto the lenders soon, which will result in a reduction in the EMI (Equated Monthly Instalments) being paid on the loans. To that effect the Central Bank has also instructed banks to start cutting their lending rates to pass on the benefits to the borrowers at the earliest possible.

  • Bank of Maharashtra reduces lending rates

    Posted on 2nd June 2015

    Nationalised Bank, Bank of Maharashtra reduced its lending rates/base rates by 25 basis points. The rate was cut down from 10.25% to 10%. This move is expected to boost housing loans, car loans, SME loans and other loans. The rate cut has been effective since June 1 2015. This rate cut will lead to lower interest cost and lower EMIs. The rate cut comes after the two major rate cuts by RBI in this year.

  • Karnataka Bank joins the rate cut bandwagon

    Posted on 2nd June 2015

    Private sector Karnataka Bank has joined the rate cut bandwagon by cutting its lending rates by 0.25% to 10.25%. This move will result in lower EMIs for the customers. This move will be effective from June 1. The rate cut is applicable to the existing loans and future loans. With the rate cut, all the loans linked to base rates will become relatively cheaper by a minimum of 0.25%. Other banks such as Punjab National Bank, Axis Bank, HDFC bank have also cut their lending rates. This move comes after RBI instructed the banks to implement the rate cut.

  • Get your SBI loans approved online!

    Posted on 2nd June 2015

    State Bank of India (SBI) has launched an online platform for its customers through which they can apply for loans. Online Customer Acquisition Solution (OCAS) is the online platform launched by SBI. The application will let the customers apply for car loan, home loan, education loan and personal loan. The customer can also assess if they are eligible for the particular loan and get a quote on the loan based on their requirement. Once the customers uploads all the required documents online, the bank officials will contact the customer to take the process further. SBI is planning to launch a similar application on the mobile platform.

  • TMB reduces base rate by 15 bps

    Posted on 28th May 2015

    Tamilnad Mercantile Bank, a leading private sector bank in south India, is the latest bank to join the bandwagon in lowering lending base rates. The bank announced a reduction in its lending rates by 15 basis points to 10.60 from June 1. The interest rates will apply to new as well as existing customers, provided the loans were availed on floating interest rate basis. This also applies to corporate and MSME borrowers.

  • Loans become cheaper at Corporation Bank

    Posted on 28th May 2015

    Public sector Corporation Bank, today announced a base rate cut of its lending rate by 0.25%to 10.0%, a release from the bank said. In its filing to Bombay Stock Exchange, the bank said it has brought down the lending rates from 10.25 to 10 percent. With this, all loans based on the lending rate will become cheaper and customers have to pay lower EMIs. After the repo rate cuts, some of the public and private sector banks have started reducing their lending rates. While banks like SBI, Axis bank, ICICI Bank and HDFC Bank had reduced their lending rates by 0.25 percent last month, banks to follow suit this month are Punjab National Bank, Bank of Baroda, Corporation Bank and IDBI Bank.

  • Vijaya Bank brings down its base rate

    Posted on 22nd May 2015

    Following base rate cuts made by top banks across the country, including India’s largest lender SBI, Vijaya Bank reduced its base rate to 10% p.a. The reduction symbolises a 25 basis points cut. The effect of such reduction was felt the most among the bank’s loan customers especially home loan borrowers. Loans with interest rates pegged to the base rate saw a decrease in total interest payable and thereby a decrease in EMIs.

    Base rate cuts are in response to repo rate cuts introduced by RBI in recent times. With a reduction in inflationary pressures, RBI brought down repo rates i.e. the rate at which banks borrow. Owing to lower costs of funds, banks are now able to pass on the benefit to customers.

    More rate cuts are expected in coming times as economic development picks up and inflationary pressures are reined in. While borrowers cheer at the possibility of lower lending rates, especially those with floating rate loan, fixed deposit holders will feel the pinch as FD rates are also seeing reductions as a parallel outcome. Many banks, including SBI, have reduced FD rates.

  • Syndicate Bank to devise flexible EMI options on education loans

    Posted on 20th May 2015

    Syndicate Bank is looking into options to restructure loan EMIs payable by rural or low-income customers of education loans. It has been noted that those employed in low-income jobs, during the initial years of their career, face difficulty in making repayments.

    Under a proposed scheme, the EMIs for the first two years will be reduced or EMIs can be deferred so as to make the loan more affordable. Currently, banks look at educational loans that cannot be repaid on an individual basis and try to restructure the repayment schedule.

    Through such proposed schemes, Syndicate Bank is hoping to reduce NPAs. By making a loan affordable, the chances of default are lowered. Education loans form about 12% of Syndicate Bank’s loan book and accounted for 4% of the total NPAs.

  • Possibility of interest rate cuts in June

    Posted on 14th May 2015

    EMIs on housing loans, auto loans and other loans are expected to come down in June 2015. RBI is likely to cut interest rates in its bi-monthly monetary policy review scheduled in June. This move will result in banks cutting the lending rates for customers. RBI has cut repo rates by 50 basis points in two moves since January. The central bank is expected to cut interest rates by 50 basis points going forward.

  • SBI’s Gold Loan Initiative for NRIs

    Posted on 04th May 2015

    SBI has added a special division as part of its NRI Branch at Vijayawada to disburse quick and affordable gold loans. Launched at this branch, the bank aims to provide gold loans to NRIs at affordable interest rates and EMIs. Lower interest rates allow borrowers to spread interest dues over a long tenure thereby paying lower EMIs. This would in turn facilitate demand for gold loans.

    SBI (State Bank of India) is India’s leading public sector bank and the country’s largest lender. SBI was the first bank to reduce its base rates following recent repo rate cuts by RBI. This has in turn prompted banks to lower interest rates on loans across different segments. While some banks are hesitating to reduce rates, leading banks like SBI, ICICI Bank and HDFC have already moved positively in this regard.

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