Recalculate your Loan EMI and Total Interest Due in a snap!
Monthly amount paid to your Loan provider
Your debt repayment schedule in regular instalments over a period of time.
|Year||Principal Paid(A)||Interest Paid(B)||Total Payment (A+B)||Outstanding Loan Balance||Pre-payment|
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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.
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.
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:
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.
Top picks from our Financial Expert
The most common thing everyone asks when they avail a loan is “What are EMIs? How do I know how much...
Most of us do not know how loan EMIs are calculated. Yet, we make payments as per the repayment schedule...
EMIs can be broadly classified as EMI during loan disbursal or EMI after you get the loan...
Manoj Kumar, 29, a Bangalore-based MNC employee, fulfilled his dream of owning a new a car in 2010...
The most common thing everyone asks when they avail a loan is “What are EMIs? How do I know how much I have to repay every month to clear my loan?”
Understanding EMIs and amortization tables is probably the most confusing part of the entire process of availing any kind of loan. The EMI, or Equated Monthly Instalment, is important because it signifies monthly outflows towards repayment of the loan.In order to calculate EMI for your loan, you should first understand its components:
The formula consists of using the loan amount, interest rate and tenure of the loan (in months): to find out your EMI (Equated Monthly Instalments)M = No of months to pay the loan
For example: You avail a home loan of Rs.5 lakhs and the bank disburses the loan in instalments of Rs.1 lakh each at each stage of completion of the house being funded. Once the first instalment is disbursed i.e.Rs.1 lakh, the borrower begins making interest payments. Pre-EMIs do not reduce the principal component of the loan amount..Advantages of Pre-EMIs
Here, EMIs i.e. interest + principal are repaid only once the entire loan amount is disbursed.Advantages of Full EMIs
If you plan to sell the house, or are expecting large income inflows orare anticipating higher returns from the property funded by the loan, it is better to opt for Pre-EMIs. However, if you are not sure and do not want to take any undue risks, Full EMIs are a better option.
Manoj Kumar, 29, a Bangalore-based MNC employee, fulfilled his dream of owning a new a car in 2010. He bought a car for about Rs 5.95 lakh. He managed to do this by availing a car loan. The down payment he was required to pay was Rs 1.5 lakh and the remaining amount was funded by his auto financier. The car loan interest rate was 12% p.a. and the loan tenure was set at four years. As per the terms of the agreement, he currently pays a monthly EMI of Rs. 11,700. Manoj goes by the payment schedule as set out by the bank. But, how does he verify the amounts payable as per the schedule? Is there any way he can reduce or increase the EMI based on his financial situation?
Calculating EMIs can be confusing and tedious. There are many borrowers who find it hard to understand EMI calculations and Manoj is no exception. Most borrowers are unsure whether they are paying the right amount as EMIs; in many cases, the lenders themselves may have erred in their calculations.
The irony of it all it that EMIs are not that hard to understand. Using MS Excel, a very popular tool used the world over, anyone can easily calculate the amounts due as EMIs.MICROSOFT EXCEL FOR EMI CALCULATION
An Excel spreadsheet is a software specifically designed for mathematical calculations and performs calculations using a number of preset formulae. This makes it one of the most convenient tools to calculate and understand EMIs or repayment schedules.STEPS TO CALCULATE LOAN EMIs USING EXCEL
To calculate loan EMIs using Excel, you have to use the function ‘PMT’ . You will need to know the rate of interest (rate), the tenure of your loan (nper) and, the value of the loan or present value (pv). Apply this to the formula: =PMT(rate,nper,pv).Example:
If you were to choose a different frequency, say a quarterly payment schedule as opposed to monthly payments, all you would have to do is factor this into the formula to get the desired results.Example:
Its really as simple as plugging in data and receiving results, completely eliminating confusion and anomalies. This not only helps you as a borrower in choosing the right loan plan but also helps you adjust your EMIs according to your financial situation.
HDFC Bank offers various loan products meant for customers of different demographics and incomes. Calculating EMI on any of the loans can be done through a few simple clicks at BankBazaar which specializes in providing free financial services to customers and general visitors.
Availing loans can be a very tricky proposition if you don’t know the underlying details such as EMI amounts, interest rates, processing charges and amortization. You may be looking for a car loan, personal loan, or even a house loan, and the best place to begin your search starts from the Internet.
BankBazaar offers a dedicated EMI Calculator tool that will provide you with information regarding the loan break-up and amortization details. You can access this tool by following these steps:
Once you select an option as detailed above, you will be taken to a new page with different dynamic fields. To use the HDFC Loan EMI Calculator, please follow the steps outlined below:
Once you are done with filling the details, click on ‘Calculate’. The results will appear just below the ‘Calculate’ button. The results are shown in terms of ‘Your Monthly Car/Home/Personal Loan EMI’, ‘Loan Break-up’ and ‘Amortization Details’.
EMI Amount: The monthly amount you have to repay for your particular loan product, according to the details entered by you.
Loan Break-up: Loan Break-up section will show details such as the loan amount, total interest payable, processing fee, and the total repayable amount. The results are also shown aesthetically in graphical format.
Amortization: This result will show details of the amount to be paid at any point during the loan tenure such as principal paid, interest paid, outstanding balance, and total payment made.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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%.
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.
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.
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.
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%.
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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%.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.