Home is the basic and the most expensive necessity that a man has to fulfil in his life. With an increase in prices and the reduction in purchasing power, a man cannot accumulate huge funds at a time. So, in order to fulfil its basic necessity, a man has to go for a home loan. As the repayment of home loan comprises of a large portion of interest rates, here we’ll quickly follow up the Home loan interest rates offered by major banks in Home loan segment. Take a quick look below:
|Bank Name||Home loan interest rates|
ICICI Bank Home loan
|9.70% to 10.15%|
SBI Home loan
|9.50% to 9.55%|
HDFC Home loan
|9.60% to 9.70%|
PNB Housing Finance Limited Home loan
|9.95% to 11.00%|
LIC Housing Home loan
|9.60% to 9.90%|
Federal Bank Home Loan
|9.95% to 10.35%|
DHFL Home Loan
|9.90% to 12.00%|
Indiabulls Home loan
|9.90% to 10.80%|
Axis Bank Home loan
|9.95% to 11.75%|
Therefore, these are the Home loan interest rates offered by different banks to its customers. The normal range of Home loan interest rates are from 10.10% to 12.75%. In this race, Government banks along with some private numbers and financial institutions are running in a front panel by offering lowest interest rates on home loans @ 10.10%. The front runners are SBI, ICICI, Standard chartered bank and LIC. SBI and ICICI bank has given a privilege to its women borrowers by providing them a home loan interest rate at 10.10% which is 0.05% lesser than the home loan interest rate provided to the male borrowers. So, women are going to be benefited with this revolution in home loan interest rate and this will encourage women to put a hand for buying her own house.
BankBazaar facilitates you to compare the home loan interest rates offered by different banks and then to take the most important decision of your life. After comparing the interest rates offered by different banks, you can also calculate your EMI based upon that by just entering few particulars in the EMI calculator provided by the BankBazaar. This calculation will help you decide the loan amount that you can easily pay off and the loan tenure in which you can easily pay off the debt without compromising on your other needy expenses.
Before going for a home loan, you must be careful enough to see the nature of its interest rates. There are two types of interest rates i.e. fixed interest rates and floating interest rates. You have to carefully choose between the two. Fixed home loan interest rates will remain fixed all over the tenure and floating home loan interest rate will keep on changing with the change in the base rate. But, the floating home loan interest rates are cheaper than the fixed home loan interest rates on the first front.
So, check and compare your home loan interest rates at BankBazaar and get your dream home at just few simple steps.
The dip in the interest rates on housing loans has offered a fresh spell of life to the fraught real estate dealers and constructors in the IT hub, Hyderabad. With the AP capital city’s housing sector being in stagnation phase for the last five years, the latest interest rate reduction is accepted with great enthusiasm. The relief was evident in Mr. K Goapala Krishna’s words, the director of Gowda Hallmark Townships and financial officer of Telangana Real Estate Developers Association (TREDA). Expecting this move to create a positive influence on prospective house/ apartment owners, the likes of SBI, Axis Bank, HDFC, and ICICI were quick to slash their rates as well. The effect of the interest rate cut has become plain at the lately-held TREDA Property Exhibition, where booths of housing financiers and banks gotten queries in bulk from potential purchasers.
28th October 2015
The RBI's step to bring down mortgage-to-value ratios and risk assessments for home loans can lower rates by yet another 25-30 bps over the coming months as per a reliable report. This can actually succeed in lowering risk assessment criteria on house loans of certain kinds (less than INR 75 lacs), where loan users are prepared to pay more cash in EMIs and consequently decrease the loan-to-value (LTV) ratio. Last week, the concerned banking official informed that for individual home loans of up to INR 30 lacs, the LTV ratio can be up to 90 percent compared to the previous INR 20 lacs. For assets worth between INR 30 lacs and INR 75 lacs, it is up to 80 percent and for loans more than INR 75 lacs, LTV ratio will be 75 percent.
21st October 2015
CREDAI announced that there is no room to decrease housing costs after the RBI governor Raghuram Rajan suggested that builders with unsold properties must cut prices. Instead, CREDAI demanded that taxes and interest rates for home loans should be reduced to increase the demand. CREDAI also stated that a substantial decrease in property costs have already happened across India. CREDAI also quoted that the property prices have decreased by 15-20% across India on an average and the input costs have grown by 15-20%. CREDAI also suggested a rate cut in home loans and rationalization of taxes to bring down property costs. A report from Knight Frank India suggests that over 7 lakhs properties in eight major Indian cities still remain unsold and it will take over three years to exhaust the list. The property sales dropped by a whooping 19% in the National Capital Region as compared to the previous year.
27th August 2015
The Reserve Bank of India (RBI) has been on the axing spree since the beginning of 2015. It has made back to back cuts in Repo Rates (the rate at which RBI lends to commercial banks in India). Some of the biggest banking institutions in the country have been quick to follow suit by slashing base lending rates bringing down home loan and other EMIs, much to the delight of their customers.
Speaking on the sidelines of meeting with the heads of PSU banks to review their financial performance which included analysis of passing of cuts in lending rates to customers, FM Arun Jaitley expressed his confidence on banks passing on the rate cut benefits further to their customers. It may be recalled that RBI, since January this year, has slashed Repo rates in three tranches of 0.25% each. The last reduction was made by the Apex bank on June 2.
7th July 2015
India’s apex bank, the Reserve Bank of India (RBI), on Tuesday, cut down the repo rate further, an additional 0.25% and mirroring similar moves in January and March 2015 when 0.25% was cut from the repo rate each time. Thus, the lending rate as set by RBI now sits at 7.25%. The RBI attributes this unseasonal cut on the low inflation rates that will finally allow the apex bank to stop controlling the prices and focus on growth. While the future remains uncertain in terms of the upcoming monsoon’s impact on the economy and the predicted hike of the inflation rate to 6% by January 2016, for now, the home loan EMIs are set to be lower, and companies can hope for cheaper loans to invest and expand their business.
18th June 2015
Following the home loan interest rate cut spree of other banks like SBI and ICICI, two public sector banks, Punjab National Bank and IDBI Bank announced slashes in their base rates by 0.25 to 10%, which means reduced EMIs for their clients. This was effected on 7th May 2015 for PNB and 11th May for IDBI.
The fall in interest rate is a welcome move which will impact loan growth positively. As it will revitalize steady revenues by offering higher loans to corporate sector that basically goes hand in hand with economic growth. It is rumored that other major banks like Bank of Baroda is also following suit. This is probably the outcome of RBI’s reprimand to banks for not passing the merits of two repo reduced rates to customers, quickly and substantially.
3rd June 2015
Following the recent RBI directive to reduce rates, SBI, HDFC and ICICI were the first few banks to leap to action. Leading the fray in cutting base rate was State Bank of India, followed by HDFC and then ICICI. SBI and HDFC have both slashed their base rate by 15 basis points and now offer a lowered lending rate of 9.85% respectively. ICICI, on the other hand, has gone further and slashed its base rate by 25 basis points and currently offers the lowest ending rate in the industry at 9.75%.
Prior to the rate cut, banks were reportedly not too keen on lowering their lending rates in order to stay as close to par with the postal savings which was over 8%. The new rate offered by SBI and HDFC will take effect from April 10 and April 13 respectively. However, only ICICI’s existing floating interest rate customers can take advantage of the new lending rate from April 10 onwards while new borrowers will have to wait till July 1 to reap the benefits.
21st May 2015
With major Indian lenders slashing home loan interest rates recently, banks like ICICI and housing finance companies like DHFL and Indiabulls Housing Finance have also followed suit with drastic rate cuts. India’s largest private sector bank, ICICI has announced a rate cut of 25 basis points for both new and existing customers bringing the home loan interest rate down to 9.90%, effective from April 14. Women applicants will benefit with an interest rate of 9.85%, while all other applicants can procure home loans at 9.90%. ICICI, currently with the lowest base rate, is also offering a fixed rate home loan up to a period of 10 years at the same interest rate of 9.90%.
A couple of housing finance companies namely Dewan Housing Finance (DHFL) and Indiabulls Housing Finance have also lowered their interest rates on home loans to keep up with the changing market trends. DHFL has cut its interest rate to 9.90% from the existing 10.15%, effective from April 15, 2015. The 20 bps reduction done by IndiaBulls lowered its home loan interest rate to 9.90%, from 10.10%. DHFL CMD added that this move was intended to enable customers from tier 2 and tier 3 towns to easily finance their new properties with affordable home loans.
14th May 2015
Mumbai: India’s biggest housing loan provider, HDFC Limited, has cut down its home loan interest rate by 20 basis points starting from 13th April 2015. After this welcome move, HDFC will offer home loans at 9.9 percent, which is considerably lesser than what was being levied by State Bank of India.
The deduction in the interest rates will lower the EMI repayment on an INR 5 million loan (flexible loan terms up to 20 years) by INR 663. Hence the EMI on the loan will be reduced from INR 48583 to INR 47,920. This statement was issued on 10th April 2015 by the bank and they reiterated that every client would benefit from this step of theirs.
8th May 2015
The fiscal year 2015 seems to have gotten off to a slow start as far as bank credit is concerned. However, in what may seem like a welcome breather, banks are likely to drop interest rates this month.
The cut in interest rates is likely to happen as soon as RBI releases its monetary policy statement which will give the banks some direction on interest rates. According to reports, post the rate cut, banks are looking to focus on the retail segment of the loan market, especially home loans and auto loans, in order to boost the growth rate. Considering that in the current fiscal year, i.e. till March 20th, bank credit has shown little growth at just 9.2%, bankers are of the opinion that unless the growth rate climbs over 10%, it will continue to be the lowest for this century.
20th April 2015
With everyone eagerly looking forward to Budget 2015 there is a lot of speculation doing the rounds about what might be announced in this budget. For people paying home loans there is more at stake because there has been speculation that the government might raise the interest reduction on home loans by Rs. 50,000. This, coupled with last years increase in tax deduction on interest payment from Rs. 1.5 lakhs to Rs. 2 lakhs, might give those paying home loans a reason to heave a sigh of relief.
In an interview, about the upcoming budget, Pratik Jain, partner (tax) at KPMG, said that the government should not levy the ‘Swach Bharath’ cess. He also said that to support the “Make In India” campaign the government needs to work on simplifying the process of doing business in India. In taxation, he called for the removal of certain surcharges and the education cess. He also said that the Rs. 50,000 exemption on home loan interest was a possibility but not too much should be expected to change in the slabs.
17th February 2015
India’s central bank, the Reserve Bank of India (RBI) has slashed its benchmark interest rate by a quarter percentage point with effect from January 15, 2015. This is predictably expected to force banks to lower their prevalent interest rates on the entire arsenal of loan products, including home loans. This move from RBI is in response to a balanced out inflation situation, an economy that needs to show concrete improvements and the need for actual growth. By making credit easier to obtain for corporates and consumers alike, the RBI is taking its first tentative step in this ambitious direction. Already, state run banks- United Bank of India and the Union Bank of India have taken the bait and slashed their lending rates by a quarter percentage point to arrive at 10%. The moral of the story- if you are looking for an auto or home loan, the time to apply is now!
9th February 2015
The last 6 months have witnessed a reduction in home loan interest rates. This trend is expected to continue in order to boost demand during the upcoming festive season.
Stiff competition in this segment has compelled many housing financiers to revise their rates downwards by 0.25%-0.30%.At 10.15% a bank’s ability to take rates to much lower levels is limited without a corresponding decrease in the 10% base rate. NBFCs, of course, have an edge over banks given the absence of a floor rate. In view of RBI’s recently expressed displeasure at fundamentally unjustified rate reductions i.e. not in line with market rate movements, some banks have opted to offer other attractions such as discounts and waivers on non-interest costs. The slow uptake in corporate credit has prompted lenders to focus on their retail loan portfolios of which home loans constitute a large part. A majority of home loan disbursals occur during the second-half of the year. With lenders vying for business, potential borrowers stand to benefit from lower costs.
10th November 2014