Recalculate your Home Loan EMI and Total Interest Due in a snap!
Monthly amount paid to your Home 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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An Equated Monthly Installment (EMI) calculator, as the name suggests, helps you understand the regular EMIs applicable on your subscribed for loan. In the case of the Home Loan EMI Calculator on BankBazaar.com, the usually tedious and time consuming task of manually calculating the EMI applicable on your home loan is simplified and loaded with all the essential data, including amortization details and ability to alter components such as interest rate and tenure to test different permutations and combinations.
Equated Monthly Instalments, or EMIs as they are known in their abbreviated form, are crucial components of a home loan as they comprise of your repayment of the principal amount along with a rate of interest charged on the outstanding balance of the home loan. While longer tenures mean smaller EMIs, shorter tenures translate to higher EMIs. It is essential for borrowers to gain a clear understanding of the amount they will be required to pay as EMIs in order to ensure that an informed decision has been made. However, the best way through which potential home buyers can calculate the approximate amount they will have to pay as EMIs is an EMI calculator.
EMI calculators, as the term suggests, is a tool that helps in calculating the amount of money an individual will have to repay on a monthly basis. All you have to do is find an EMI calculator online and enter details such as your home loan tenure, the loan amount, and the rate of interest, and you will receive an estimate of the EMI due each month.
A home loan EMI calculator can also be used to access amortisation tables that can help in strategizing your repayment schedule so that there are no problems later.
When using the housing loan calculator on BankBazaar.com, the following parameters need to be kept handy. The simplicity of this online tool is directly related to the minimal inputs and ability to personally customize the results.
The obvious perks are massive savings of time, energy and your fragile patience. Aside from these, the following advantages are in order,
These are busy times and anything that isn’t nailed down by a timer is too much of an indulgence or not worth the bother. The immensely friendly housing loan calculator as available on BankBazaar.com is designed and deployed to simplify a tedious task, in the shortest time possible. Managing your loan EMIs has never been easier, thanks to this user friendly and aesthetically deployed home loan repayment calculator. Plus, BankBazaar’s experienced customer support team is always at hand if you encounter a problem or need clarification for a particular query. Go ahead- crunch your numbers today!!
It is the monthly repayment amount the borrower is required to pay the lender every month as a part of the repayment arrangement over a specified term. The amortization schedule acts as the reference for details on the home loan repayment. EMI stands for Equated Monthly Installment, an amount derived from the principal amount borrowed along with the applicable interest charges at fixed or floating rate.
EMI is one of the most important components of a home loan which should be given due consideration before signing up for a home loan as it has the potential effect on your monthly budget. Since paying off a housing loan is relatively a long term commitment, understanding the EMI value and its impact on your finances is paramount. A amortization schedule is what you need, to dig into the nitty gritty of EMIs.
For those of you wondering about the calculations in the background, the formula for calculating EMI for home loan has been given below. Not as complicated as its looks, you can use this formula to manually arrive at the EMI amount.
Formula to Calculate Home Loan EMI:
E = P x r x (1+r)^n/((1+r)^n – 1)
R = [Annual Interest /(12 x 100)] or [Annual Interest /12/100)]
|P||Principal home loan amount|
|R||Rate of Interest provided on a monthly basis|
|N||Home loan tenure in months|
The above formula is used to calculate the monthly installment that is to be paid for a home loan. It does not consider the processing fee that only contributes a small percentage of the loan amount. For more clarity and accuracy, it is advisable to use the automated tool available on this site.
Consider that your home loan is Rs.25 lakh at an interest rate of 8.50% per annum, for a period of 360 months.
P = ₹ 25,00,000
R = [8.50/(12*100)] or [8.50/12/100]
N = 360 (30 years into months)
EMI = ₹ 25,00,000* 0.007083 * (1 + 0.007083)360 / ((1 + 0.007083)360 – 1) = ₹ 19,223. i.e.,
The monthly installment that you would have to pay is Rs.19,223 for 360 months. Hence, the total amount payable is ,Rs.19,223 * 360 = Rs.69,20,280. This includes an interest of Rs.44,20,280 that you would be paying towards the home loan.
Complex calculations meet eye-pleasing user interface. This is the USP for the housing loan EMI calculator as offered by BankBazaar.com. As listed in a segment above, the essential inputs required are- Loan amount, Loan tenure, Applicable interest rate, Applicable processing fee and the choice between a ‘yes’ for the pre-payment option or the alternative ‘no’ for the same. All these points must be marked on the very simple ‘slider’ based interface of the home loan calculator, followed by the click on the ‘Calculate’ button. And just like that, it’s done.
The resultant page will list the EMI applicable to you, based on the specific inputs provided. Aside from this, amortization details are also offered as part of the result. Tedious calculations that would have taken a sizable chunk off your patience, has now been accomplished in mere minutes. Cheers to technology.
It is a statement like schedule which offers elaborate details based around the future payments of the loan. It provides comprehensive information such as balance before payment of the EMI, the EMI value, breakup of the EMI into principal and interest repayment until the end of the term. The amortization schedule can be obtained by using the EMI calculator available on this website.
Helps in ascertaining the EMI amount:
The primary benefit of using an Home Loan EMI calculator is that it helps in arriving at the EMI amount. By simply providing basic inputs such as loan amount, rate of interest and the loan term, you will be presented with an elaborate output which includes the EMI amount payable.
Offers breakup of various finance charges:
Using the calculator also helps in understanding various financial charges such as total interest paid & processing fee value. Since banks and financial institutes present them as a percentage of the principal amount, knowing the actual value helps immensely in deciding the terms of the loan.
Comparing Loan Offers:
You can use the home loan calculator to compare the financials involved in loan offers from various banks. Provide the required inputs on the basis of offer made from different banks, get the results, jot them down and compare. You can decide to sign up for the most feasible one which offers the lowest rates and charges.
Helps in Choosing the Terms:
Knowing the EMI value also helps in choosing the terms of the loan such as tenure of the loan. If a shorter term means a higher EMI, you can try various combinations of available tenures and work out suitable terms that match your monthly income and budget.
Helps in Loan Management:
If you’re in the middle of repaying a home loan and would like to revisit the financials with a specific motive such as paying off the loan before the term ends, using the EMI calculator helps in making decisions in this regard.
Helps in Validating Information:
If you’re negotiating a home loan deal with the bank, you can cross verify the schedule provided by the bank by using the EMI calculator to get the amortization table. If the numbers mismatch, you can contact the bank and get them clarified.
One of the more useful features of this EMI calculator for home loans is that it can be customized in line with your individual requirements and limitations, even before you have applied for the home loan. Thereby, substitute various combinations of interest rates and tenures to work out a schedule that works best for you. Again, amortization details for various combinations plus the applicable EMI in each case can help you be more prepared with regards to your specific requirements before you approach the chosen bank/financial institution for the home loan.
The following pointers are essential to understand the various factors that make up your home loan’s amortization details,
No. This home loan repayment calculator is 100% free to use and no specified conditions exist to qualify for its usage. As a visitor to BankBazaar.com, you can access the page directly and compute your home loan EMIs.
Not a worry. If you have any queries concerning the workings of this home loan calculator in India, kindly consult our customer support team. We will be happy to help you with all your queries and concerns.
You should be able to get this information from the loan related documents issued by your bank. Alternatively, you can search for this detail on the bank’s official website, or by personally contacting the bank’s customer support department.
Immediately below the EMI calculation, you can see a pronounced ‘+’. Click on this to find additional details pertaining to your home loan EMI breakup. There are even options to share this EMI wizardry on your social media channels.
Similarly, under the title marked ‘Your Amortization Details (Yearly/Monthly)’, the pronounced ‘+’ can be clicked to reveal a graphical representation of the amortization details associated with your home loan. This chart format is immensely user friendly and divulges a treasure trove of related information.
Surely, touch bases with us and we will be happy to talk. Btw, this EMI calculator for home loans is based on a unique in-house technology that is tuned towards making the whole process of calculating your home loan EMIs, faster, hassle free and immensely user friendly.
Well, it makes sense to do so even though our calculator is accurate. There may be slight changes, owing to the way your bank calculates the EMI. Also, your installment may include other monetary components which you were probably not aware of, while using the tool. Therefore, make sure to cross check before making critical decisions.
The calculation is done on the basis of reducing balance principle, which implies the interest charges are applied on the outstanding balance only. Therefore, as you pay off the loan, the balance owed reduces, affecting the interest charged.
If you would like to make prepayments during the loan tenure, say “Yes” against this question and provide inputs in the fields that follow, to take into account, the pre-payments in the amortization schedule.
With this tool, you can obtain information under three different components. They are EMI amount, breakup of charges & amortization tables.
Yes, you can use find this calculator available on our apps. Tap the left hand top navigation and choose “Finance Tools” to locate the EMI calculator. Bankbazaar mobile apps are available on both Android and iOS platforms.
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Home loans, in essence, are advances taken from financial institutions to fund the purchase of a residential property. In India, banks are the most popular financiers of homes. With growing demand for real estate in India, basic home loan products have been tweaked resulting in variants that suit diverse individual needs.
Home loan products offered in India
They are categorised according to the purpose they are availed for. Home loans are commonly offered:
Other variants of home loans are:
Home loan interest rates are offered either on a fixed or floating rate basis or a hybrid of fixed and floating rates.
Floating rate home loans are those where the interest rate is pegged to the bank’s lending rate. The interest rate can change over the tenure of the loan. Most home loans in India are disbursed on the basis of floating interest rates.
Fixed rate home loans are those where the interest rate remains fixed over the tenor of the loan. These are not popular and are opted for when rates are expected to rise in the foreseeable future. Fixed rate home loans often come with a reset clause i.e. the rate can be revised upwards or downwards or converted to floating rates after a specific number of years.
Hybrid rate home loans are those where the loan is structured such that fixed rates and floating rates apply during different times during the loan period.
Home loan rates of some of the leading banks in India have been tabulated below. Interest rate trends can be gauged by changes made by these banks.
|Bank Name||Home Loan Interest Rate|
|State Bank of India (SBI)|| All: 10.15%
Maxgain: Rs.1 crore and > - 10.40%
Women: 0.05% less than existing rates
|ICICI Bank (SBI)||Salaried:
Floating: 10.15% - 10.25%
Fixed, 1 or 2 yrs.: < Rs.75 lakhs - 10.15%
Rs.75 lakhs - Rs.5 crores - 10.50%
Fixed, 10 yrs: < Rs.1.5 crores - 10.25%
Rs.1.5 crores to Rs.5 crores - 10.40%
Rs.5 crores and > - 10.50%
Floating: < Rs. 75 lakhs - 10.15%
Rs.75 lakhs and > - 10.35% - 11.00%
Fixed, 1 or 2 yrs.: < Rs.75 lakhs - 10.25%
Rs.75 lakhs to Rs.3 crores - 10.50%
Rs.3 crores to Rs.5 crores - 11%
Fixed, 10 yrs: Below Rs.1.5 crores - 10.25%
Rs.1.5 crores to Rs.5 crores - 10.40%
Rs.5 crores and > - 10.50%
Below Rs.75 lakhs: Floating - 10.10%; Fixed - 10.20%
|Punjab National Bank (PNB)||Floating: < Rs.75 lakhs - 10.25%
Rs.75 lakhs and > - 10.50%
Fixed: < Rs.75 lakhs - 10.75%
Rs.75 lakhs and > - 11%
Flexible - OD: < Rs.75 lakhs - 10.25%
Rs75 lakhs and > - 10.50%
(+0.50% on existing rates for 3rd house onwards)
|Bank of Baroda (BOB)||Floating, 5 to 30 yrs.: 10.25%|
< Rs.75 lakhs - 10.20%
Rs.75 lakhs and > - 10.45%
|Bank of India (BOI)||Star Home: < Rs.75 lakhs - 10.20%
Rs.75 lakhs and > - 10.45%
Star Diamond: Rs.5 crores and > - 10.45%
Star Smart: < Rs.1 crore - at Star Home rates
Rs.1 crore and > - 0.25% over Star Home
< Rs.75 lakhs - 10.15% to 10.65%
Rs.75 lakhs and > - 1025% to 10.75%
Floating: < Rs.30 lakhs - 10.50% to 11%
Rs.30 lakhs and > - 10.75% to 11.75%
Floating: 10.15% to 10.65% (limited offer)
TruFixed Plus, fixed 2 yrs. (limited offer):
< Rs.30 lakhs - 10.25% to 10.75%
Rs.30 lakhs to Rs.75 lakhs - 10.50% to 11%
Rs.75 lakhs and > - 10.50% to 11%
TruFixed Plus, fixed 3 yrs. (limited offer):
< Rs.30 lakhs - 10.75% to 11.25%
Rs.30 lakhs to Rs.75 lakhs - 10.75% to 11.25%
Rs.75 lakhs and > - 11% to 11.50%
|Standard Chartered Bank (SCB)||Up to Rs.10 crores: 10.15% upwards|
|IDBI Bank||Home Loan (floating): 10.25%
Home Loan (fixed): < Rs.30 lakhs - 10.75%
Rs.30 lakhs and > - 11%
Home Loan Interest Saver (floating): 10.40%
|Axis Bank||Salaried: < Rs.75 lakhs - 10.15%
Rs.75 lakhs and > - 10.40%
Self-employed: < Rs.25 lakhs - 10.40%
Rs.25 lakhs and > - 10.90%
Home loans are repayable in fixed installments over the loan period. These installments are called EMIs (Equated Monthly Installments).
Borrowers have to repay the principal as well as the interest on the loan. Every month, a part of the principal and interest due is repaid until the entire loan is cleared in full.
Although the EMI (i.e. monthly principal and interest payments) remains the same every month, the ratio of principal to interest payments changes. Initially, interest payments are high but as time progresses, interest payments reduce and EMIs comprise mostly principal payments.
This is because most banks use the monthly reducing balance method whereby interest is calculated on the balance outstanding at the end of every month i.e. interest is not charged on amounts already repaid.
P = Principal; i = interest rate (monthly i.e. annual rate divided by 12); n = loan period (in months i.e. loan period divided by 12)
Using the above formula and considering a loan of Rs. 10 lakhs @ 10% p.a. for a period of 5 years, the EMI = Rs.21,247.
This is payable over a period of 60 months i.e. 5 years / 12.
The amortization table below shows the loan repayment schedule.
It depicts how the EMI = Rs.21,247 is split between interest and principal payments. The balance outstanding reduces every month thereby reducing interest due.
|Month||Opening Balance||Principal Repaid||Interest Paid||Outstanding Balance|
These are online tools that borrowers can use to calculate their home loan EMIs by inputting data pertaining to the loan amount, tenure and interest rate.
It is useful for quick calculations to assess monthly outflows, make comparisons between home loan schemes, before applying to a bank, and on existing loans, in case of refinancing.
Banks are bound to assess borrowers, applying for a home loan, based on their creditworthiness.
Determining whether a borrower is eligible for a home loan depends on a number of factors, all of which go to showing whether the borrower can repay the loan, completely and in a timely manner, over the entire loan period.
Maintain or improve credit scores by utilising debt responsibly and making timely repayments, in full. Banks commonly prefer a CIBIL score ranging between 750 and 900 points. Checking scores before applying for a loan provides opportunities to improve a bad score. (This includes credit card usage).
Display a good repayment record on past loans/credit cards to increase financial credibility when applying for a fresh home loan.
Reduce financial obligations by clearing outstanding debt. Banks are more confident disbursing loans to borrowers who don’t have other loans to service.
Include a co-applicant e.g. a spouse to enhance income levels. Loan amounts are usually sanctioned up to 50% of the borrower’s income.
Include all components of primary income when declaring earnings e.g. bonus, perks etc. in addition to basic salary and other/alternative sources of income e.g. rental income. This gives a broader view of income levels, positively influencing a bank’s outlook on earning capacity.
Build / leverage on existing relationships with the bank as a customer. Banks are more likely to approve loans of customers who have dealt satisfactorily with them in the past since they feel they already know the borrower. It is also one way for the bank to retain customers and build goodwill.
Show sufficient funds to make a down-payment. The LTV ratio offered by most banks ranges between 70% to 80%. The balance, usually the down-
payment, has to be borne by the borrower. Alternatively, investing in a less expensive property will reduce the loan requirement. Banks tighten their approval processes for large loan amounts.
Opt for a long-term loan. Longer tenures bring down EMIs since the amount to be repaid is spread over many months/years. Lower EMIs mean less strain on income which in turn strengthens repayment capabilities.
Highlight positive personal attributes e.g. good educational qualifications, few dependents, good health, strong history of savings/money management, residential stability etc. A stable borrower is unlikely to default on repayments. Also, a borrower with fewer dependents has fewer personal financial obligations.
Opt for loans that offer repayment flexibility e.g. staggered repayment schedules wherein interest charged is lower during the initial part of the loan period and higher during the latter. Banks may accommodate borrowers on this basis based on proven potential for higher incomes in the foreseeable future.
Invest in quality properties. Banks tend to qualify borrowers who plan to invest the funds obtained through a home loan in high-quality properties. This is because the property so funded is usually mortgaged to the bank as security.
Offer additional collateral by pledging physical assets such as existing property, investment instruments like shares or term insurance to get a positive risk rating. Alternatively, appoint a guarantor.
Apply while still young. Most banks require home loans to be repaid before the borrower retires. Applying for a home loan late in life limits the loan period. This increases EMIs since the option to stretch payments over a longer tenure is not available.
Want to buy your dream home? You can use a home loan from a reliable bank to finance your big investment. When you are selecting a home loan, you will need to put in a little effort to find a dependable loan provider and low interest rates.
Your monthly expenditures will be very high when you have to pay home loan EMIs. You will need to plan all your expenses efficiently depending on your monthly income. If you already have a loan, you need to work on reducing your current interest rates.
You also need to bear in mind that home loan repayments typically go on for almost 10 years. Home loan tenures are very long. We advise you to plan your monthly expenses at the beginning of each month.
Shift from fixed interest rate to adjustable interest rate: Are you currently following a fixed interest rate for your home loan? For the remaining term of your loan, you can move from fixed interest rate to an adjustable interest rate. You may be required to pay a certain fee for converting the rate.
Shift to MCLR: The Reserve Bank of India (RBI) asked banks to shift to Marginal Cost of Funds-based Lending Rate (MCLR) in 2016. The MCLR is better than the Benchmark Prime Lending Rate (BPLR) or the Base Rate systems as it is more transparent. It shows updates regarding policy rates very clearly. With the MCLR system, banks are required to assess your MCLR rate on a monthly basis and modify your interest rate regularly and not once a year. The bank is also expected to inform you when your interest rate was altered. The MCLR system will enable you to receive the advantages of the repo-reduction system. Therefore, with this system, you can enjoy the benefits of interest rate cuts that are going to be made in the near future.
Transfer your home loan balance: Banks allow you to move your remaining home loan balance to a different loan provider. The remaining loan amount will be paid by your new loan provider. The new bank will give you a new loan with different terms and conditions and a new interest rate. You need to ensure that the new interest rate is lower. This option is ideal if your current loan provider is not ready to alter your current terms or to reduce your interest rate.
Modify your current interest rate to a lower one: You can move to a lower interest rate in the dual rate loan option or in the adjustable rate option. This is good for people who have taken home loans from a housing finance company or a Non-Banking Financial Company (NBFC). You can lower your interest rate to the updated interest rates that are prevailing in the market. You will need to pay a minimal fee for converting your interest rate.
Raise your EMI: To lower your home loan interest rate you can increase your monthly payment amounts and complete the full payment. You may have to present your latest bank statements or salary slips to alter your EMI amount.
Prepay your home loan: You can prepay your home loan fully or a segment of your loan. It is a great idea when the home loan rates are low. Most banks will ask you to pay prepayment charges. You will need to ensure that these prepayment fees are lesser than the savings you make on interest.
You can follow these guidelines to lower your home loan EMI rate. When you reduce your rate, you can save a lot of money.
State Bank of India, one of the largest banks in India brought down their benchmark lending rate to 9.10%. This means there was a reduction of 0.15% in the benchmark lending rate. By doing it, they reduced the EMIs for all the borrowers.
The minimum lending rate or base rate was 9.25% before. The base rate has been reduced by 0.05%. The BPLR or benchmark prime lending rate has also been reduced from 14% to 13.85%.
10th April 2017
The 'Housing for All' initiative announced by Prime Minister Narendra Modi has brought interest events in the realty sector of the Indian market. Since the announcement, people have been eager to know the benefits. The outcome of the initiative at this stage has been revealed that offers home loan interest subsidy to the middle-class taxpayers. Individuals applying for a home loan of Rs.9 lakh up to Rs.12 lakh will be eligible to apply for a home loan subsidy under the PM Awas Yojna (PMAY) scheme. An interest subsidy of 3% for loan amount up to Rs.9 lakh and 4% for a loan amount of Rs. 12 lakh or higher will be applicable for borrowers buying their first house. This subsidy can turn out to be a saving of Rs2,000 on EMIs every month towards the repayment of the loan.
31st March 2017
The government is planning an amendment to the Employees’ Provident Fund which will enable EPFO members to withdraw up to 90% of their funds towards down payments for homes.
With over 4 crore Indians members of the EPFO at present, the amendment would benefit a large number of prospective home owners.
The amendment will also allow subscribers to make EMI (Equated Monthly Instalments) towards their home loans from their EPF balance.
To avail this scheme, however, the EPFO subscribers would need to form a co-operative society with a minimum of 10 members.
The Union Law Minister informed Parliament of the decision and further stated that the EPFO member would be able to utilise their EPF balance to fund the purchase or construction of a dwelling house or towards the acquisition of a site.
He further stated that withdrawal towards home loans would be enabled only for EPFO members who fulfil certain criteria, which would be made public shortly.
21st March 2017
n a recent announcement, India Home Loan revealed that its credit ratings were upgraded by Credit Analysis and Research Limited (CARE). Long-term bank facilities saw their credit rating improve from Care BB+ to Care BBB-. The upgrade was considered by CARE following the recent progress made by India Home Loan with regards to its financial and operational performance. As a result, India Home Loan has moved up by almost 1% on the National Stock Exchange, and in just one year, 157% returns have been achieved by stocks.
13th March 2017
From 1st April, banks began pricing their lending rates based on MCLR. Since RBI holds the interest rates by maintaining the repo rate at 6.25%, banks may see lower EMIs for borrowers. In a temporary measure, RBI had raised the CRR for banks to 100% of their deposits to absorb excess liquidity post demonetisation. Rajnish Kumar, MD of SBI, has said that with the withdrawal of incremental CRR requirement from 10th December, banks can bring down MCLR.
SBI loan borrowers are locked into the MCLR for a year. Borrowers can switch their loans to lenders to avail lower EMIs. Soumya Kanti Ghosh, Chief Economic Adviser at SBI, has said that even if withdrawal restrictions are lifted, banking sector could see a gain of Rs.1.5 lakh crores through new deposits. In November, SBI cut its home loan rate for new borrowers to a 6-month low to 9.15%.
22nd December 2016
Although RBI hasn’t reduced policy rates (6.25%), excess liquidity in the banking system may help new home loan borrowers (who take loans post demonetisation) with lower EMIs. After demonetisation, banks have been flooded with deposits of nearly Rs.5.12 lakh crores, while the withdrawals have been Rs.1.3 lakh crores only. There has been a delay in rate cut because the return on the savings account will remain an outflow for banks, impacting their cost of funds. Another reason RBI holds rates may be because the US Fed rate is expected to be hiked, triggering dollar outflows, and resulting in the weakening of the rupee.
All home loans taken after 1st April, are now linked to the bank's MCLR. Lower MCLR rates can be expected. Currently, the 12-month MCLR for most banks is in the 9.05 to 9.45 % range. After the mark-up, the actual home loan rate is around 9.35%. Even after the expected rate cut by RBI in February 2017, borrowers can expect a waiting period of 1 year before they see an impact on their EMIs.
19th December 2016
Due to the demonetization of the Rs.500 and Rs.1,000 currency notes borrowers are finding it hard to repay their loans. Keeping this in mind the Reserve Bank of India (RBI), in an effort to assist borrowers, banks and financiers has given an additional 60 days to declare certain loans of up to Rs.100 lakh as bad loans. The revised norms will also be applicable to running working capital accounts with a limit of Rs.1 crore, term loans with a limit of Rs.1 crore, housing loans, agricultural loans, loans sanctioned by Non-banking Financial Companies (NBFCs), loans extended by District Central Cooperative Banks (DCCBs). The relaxed dispensation will be applicable to loans payable between November 1st and December 31stt.
5th December 2016
Loan rates for ordinary citizens will drop which includes car and housing loans with the RBI declaring 25 basis points 6.25% repo rate cut. This means the lending companies have to revise their rates based on the new repo rates as the repo rate is directly linked to Marginal cost of funds based lending rates (MCLR) therefore making the changes clear instantly. The lending rates of the bank are also affected by the repo rate as well as the Monthly reporting for MCLR.
19th October 2016
With RBI cutting the repo rates by 25 basis points, real estate developers are ecstatic about a potential increase in demand in the real estate market. With the first round of repo cuts coming in April followed by the most recent rate cut, experts are positive that the banks will transfer the benefit to the customers. With the slash in rates, people will be keen to buy property and banks can offer home loans at cheaper EMI’s. Using the new rates offered, prospective home loan applicants can use the revised rates and calculate their EMI’s using an EMI calculator. Rajeev Talwar, the CEO of DLF Ltd feels that the time of the rate cuts couldn’t have been better and the revised rates can offer attractive home loan interest rates during the upcoming festival season.
4th October 2016
With the RBI slashing repo rates by 50 basis points and SBI following suit with a cut in their lending rates by almost 40 basis points, the bank has seen a spur of sales. With interest on home loans down to 9.30 to 9.35% from its earlier 9.70%, many customers are rethinking their decision to acquire a home loan through other financing companies. With other banks now coming under the crosshairs, many will be looking to follow suit and cut their lending rates. While they may not match up to what SBI could offer, they still will reduce lending rates for fear of losing out on customers.
This is welcome news for buyers and will also lead t an increase in the demand for residential housing.
2nd October 2016