A "low interest" loan shouldn't mean you have very little interest in paying it back!
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    We found 45 Home Loan Interest Rates

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    8.5% - 8.7% Floating
    Up to 0.5% (min. ₹5750) One time fee
    5L Min
    1-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.40% - 8.75% Floating
    0.35% (max. 10,000) + S.T.
    15L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.40% - 8.85% Floating
    0.5% (min. ₹11,500) One time fee
    5L - 10Crs
    3-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free Paperless Approval Option Available
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.35% - 8.60% Floating
    Up to 0.5% (max. ₹11,500) One time fee
    5L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.40% - 10.05% Floating
    Up to 0.5% One time fee
    2L - 3Crs
    1-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.70% - 9.25% Floating
    0.50% (min. ₹10,000) + S.T.
    12L - 5Crs
    1-20 Years (10 yrs plot loan)
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good To Know
    Eligibility Criteria
    8.35% - 11.75% Fixed/Floating
    0.50% (min. ₹10000) One time fee
    5L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.5% - 8.55% Floating
    10,000 + S.T. One time fee
    40L - 5Crs
    1 - 25 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    12.5% - 17% Fixed/Floating
    2% One time fee
    2L - 1Cr
    1-20 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good To Know
    Eligibility Criteria
    8.55% - 8.99% Floating
    ₹5,000 to ₹10,000 + S.T. One time fee
    20L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    10.67% Floating
    1% One time fee
    5L - 5Crs
    1-30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.65% - 8.85% Floating
    0.5%
    20L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good To Know
    Eligibility Criteria
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  • Home Loan Interest Rates Reviews

    • HDFC Limited Home Loan
      "High on ROI"
      0.5 4.0/5 "Great!"
      HDFC LTD has provided me the home loan with ease. I did not have to follow much on the process. I got the loan on time. The verification went well too. The institution is very high on the interest rate and the processing charges are also very high.
      Was this review helpful? 3
      , bangalore
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Immediate response"
      0.5 4.5/5 "Excellent!"
      Bankbazaar.com have contacted me within five to ten minutes of time, also the response is very prompt. They have forwarded the information to the bankers on immediate basis. Customer service is good and the website is easy to access.
      Was this review helpful? 1
      , pune
      Reviewed on Jun 22, 2017
    • HDFC Limited Home Loan
      "Better "
      0.5 4.0/5 "Great!"
      HDFC limited have contacted me after sometime from the time of inquiry for the home loan. Rate of interest was around 8.5%, which was bit huge one for me , also I am okay with that. Customer service and other things were good only.
      Was this review helpful? 1
      , pune
      Reviewed on Jun 22, 2017
    • Bank Bazaar Customer Support
      "Centralized online portal to make the comparison"
      0.5 3.5/5 "Pretty good"
      Bankbazaar.com is good thing like I can make the comparison of every bankers relating to the financial requirements. I would like to say that they could make the information to be get forwarded to unique bank only, which customer is really opted. Online portal of the Bankbazaar.com is an average one.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 22, 2017
    • HDFC Limited Home Loan
      "Service to be get improved"
      0.5 1.0/5 "Really Bad"
      Nobody have contacted me from the HDFC limited for the home loan, which I have inquired. Rate of interest was around 8.6%, also I am okay with them. In future, I would like to go ahead with them in future and I request them to contact the customer as soon as possible.
      Was this review helpful? 1
      , mumbai
      Reviewed on Jun 22, 2017
    • Bank Bazaar Customer Support
      "Fantastic "
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com is very good and am using it from the last two to three years of time. I would like to say all the current scenario of the financial market can be understand through the Bankbazaar.com, also the online portal is very much easy to access.
      Was this review helpful? 1
      , mumbai
      Reviewed on Jun 22, 2017
    • HDFC Limited Home Loan
      "Satisfied"
      0.5 4.0/5 "Great!"
      I did not taken the home loan with the HDFC limited because I have already arranged the funds from my end. Customer service is very good one and the response is also good one. The rate of interest was around 8.5% with the HDFC limited, also I am comfort with them.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 22, 2017
    • Bank Bazaar Customer Support
      "Fabulous"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com is very helpful and they have contacted me for many times, also in future I would like to go ahead with them only for the financial requirement. Response and other things are also fine one with the Bankbazaar.com.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 22, 2017
    • Punjab National Bank Home Loan
      "Good going"
      0.5 4.0/5 "Great!"
      I did not availed the home loan with the PNB housing finance limited because I have arranged the finance from the other sources. I have not found any issues with them till now and the rate of interest rate was not aware by my end but their services are really good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 22, 2017
    • Bank Bazaar Customer Support
      "Mentor"
      0.5 4.0/5 "Great!"
      Comparison is the major factor with the Bankbazaar.com, also they have made the brief discussion over there, which really helped me to understand the market scenario and the banking process. Information are really crystal clear, also there were no hidden charges.
      Was this review helpful? 0
      , guwahati
      Reviewed on Jun 22, 2017
    • HDFC Limited Home Loan
      "Best"
      0.5 4.0/5 "Great!"
      Within twenty days of time, I have got the home loan with the HDFC limited and the response and other things with the HDFC limited was good one, also the customer service too. Rate of interest was around 8.5%, which was not okay for me , also they have told post documentation process , rate of interest would not get changed.
      Was this review helpful? 0
      , guwahati
      Reviewed on Jun 22, 2017
    • HDFC Limited Home Loan
      "Better "
      0.5 4.0/5 "Great!"
      I got the home loan with the HDFC limited and the interest rate is around 8.35%, also the loan amount got sanctioned in twenty five days of time. Customer service is good and the processing charged was around 0.5% of the total capital amount, also I am very much happy with them.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 22, 2017
    • Bank Bazaar Customer Support
      "Better "
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com had chosen the right bank for my financial product. Customer service of Bankbazaar.com is really good and I came to know about bankbazaar through internet search. Website of the Bankbazaar.com is very much easy to access..
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 22, 2017
    • Axis Bank Home Loan
      "Satisfied"
      0.5 2.0/5 "Expected more"
      I had not taken the home loan with the Axis bank because of the huge processing charges and also they have delayed for some time. Customer service was not really good after the document collection process, also they have not provided the proper feedback too.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 22, 2017
    • Indiabulls Home Loan
      "Very Good service"
      0.5 4.0/5 "Great!"
      Very recently I got Home loan from India bulls. The rate of interest is low with India bulls. I am happy about the loan amount. I got the home loan with the tenure of 20 years. They have offered me the loan with the floating interest rate. There is no fore closure charges applicable with India bulls.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 22, 2017
    • HDFC Limited Home Loan
      "Good"
      0.5 4.0/5 "Great!"
      I got the home loan with the HDFC limited and the interest rate was around 8.4%, also the loan amount got disbursed within a week of time. Service aspects and everything is fine one for me. They have provided around 80% of the cost of home as loan. Documentation process were nominal one with the HDFC limited.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 22, 2017
    • Bank Bazaar Customer Support
      "Processing Home loan transfer"
      0.5 5.0/5 "Blown Away!"
      Application process is completed within 20minutes. Still I am unable to believe. Let me see how it goes. Interaction with the team is very nice. Expect the whole transfer in the same way to be smooth. seems to be very easy than manual data collection enquiry and all the stuffs.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 22, 2017
    • Bank Bazaar Customer Support
      "Wonderful "
      0.5 4.0/5 "Great!"
      Bankbazaar.com is very good one for me and am using it from the last one year of time. Services and other aspects are really good one. Online portal of the Bankbazaar.com is easy to access, also I got the response from them in the immediate manner, I would like to say that the information so provided could be used and we can save it for future purpose to process the application with other Bankers.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 22, 2017
    • Axis Bank Home Loan
      "Better"
      0.5 4.0/5 "Great!"
      Process and everything was a good one with the Axis bank and I don't have any issues with them till now. Response was very much delayed , also the process lapsed with the Axis bank. In the mean time, I had got the better offer from the Axis bank..
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 22, 2017
    • ICICI Bank Home Loan
      "Wonderful "
      0.5 4.0/5 "Great!"
      I got the home loan with the ICICI bank and the interest rate is around 8.35%, also the service aspects are good. I had chosen them because the ICICI bank have strong bond with the builder, so the builder recommends me to deal with the ICICI bank. Response was fine with the ICICI bank and they have delayed the disbursement up to the month of November.
      Was this review helpful? 0
      , nagpur
      Reviewed on Jun 22, 2017
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    Home Loan Interest Rates is Rated as "Great!" by 22631 Users

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    Promised Interest Rate

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    Home Loan BYTES FROM OUR KITCHEN

    Home Loan Interest Rates:

    Home loan interest rates offered by different banks to its customers in India. The normal range of Home loan interest rates are from 8.35% to 14.00%. 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 @ 8.35% to 14.00%. 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 8.35% and 9.50% 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.

    Home Loan Offers

    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.

    Home Loan Interest Rates Comparison – June 2017

    Bank Name Home loan interest rates Processing Fee

    Aditya Birla Housing Finance Home loan
    8.55% to 8.99% ₹ 5,000 to ₹ 10,000 +ST

    Aspire Home Finance Corporation Limited
    14.00% 2%

    Au Housing Finance
    12.50% to 17% 2%

    Axis Bank Home loan
    8.35% to 11.75% 0.5% (min. ₹10,000)

    DBS Bank
    8.50% to 8.55% ₹ 10,000+ ST

    Dena Bank
    8.65% to 8.85% 0.5%

    Federal Bank
    9.59% to 9.84% 0.5% (min. ₹8,625)

    Gruh Finance Limited
    10.67% 1%

    HDFC LTD Bank Home loan
    8.35% to 8.60% Up to 0.5% (max. ₹11,500)

    ICICI Bank Home loan
    8.40% to 8.85% 0.5% (min. ₹11,500)

    Indiabulls Home loan
    8.40% to 10.05% Up to 0.5%

    Oriental bank of Commerce
    8.50% ₹0

    PNB Housing Finance Limited Home loan
    8.50% - 8.70% Up to 0.50%(min.₹5750)

    SBI Home loan
    8.40% to 8.75% 0.35% (max. ₹ 10,000) + S.T.

    Sundaram BNP Paribas Home loan
    8.70% - 9.25% 0.50% (min. ₹ 10000) + S.T.

    Yes Bank Home loan
    10.25% to 10.75% Up to ₹11,500

    Perfect Home Loan Deals for you

    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.

    Current Home Loan Interest Rates Table of All Banks – June 2017

    Bank Name Home Loan Interest Rates Home Loan Amount
    Axis Bank 8.35% to 11.75% Min. - 5 Lakhs Max. - 10 Crs
    Bank of Baroda 8.35% to 9.35% Min. - 1 Lakhs Max. - 2 Crs
    Bank of India Men : 8.60% Women : 8.55% Min. - Depends on income Max. - 5 Crs
    Canara Bank 8.65% to 8.75% Min. - Depends on income Max. - Depends on income
    DBS Bank 8.50% to 8.55% Min. - 40 Lakhs Max. - 5 Crs
    Dena Bank 8.65% to 8.85% Min. - 20 Lakhs Max. - 1 Cr
    HDFC LTD 8.35% to 8.60% Min. - 5 Lakhs Max. - 10 Crs
    ICICI Bank 8.40% to 8.85% Min. - 5 Lakhs Max. - 10 Crs
    State Bank Of India 8.65% to 8.70% Min. - 15 Lakhs Max. - 10 Crs
    Punjab National Bank 8.65% to 8.75% Min. - 20 Lakhs Max. - Depends on income
    Indian Overseas Bank 8.65% to 9.15% Min. - Depends on income Max. - Depends on income
    Aditya Birla Housing Finance 8.55% to 8.99% Min. - 20 Lakhs Max. - 10 Crs
    Aspire Home finance Corporation Limited 14.00% Min. - 2 Lakhs Max. - 25 Lakhs
    Au Housing Finance 12.50% to 17% Min. - 2 Lakhs Max. - 1 Cr
    India Bulls General Borrowers - 8.40% to 10.05% Women Borrowers - 8.35% to 10% Min. - 2 Lakhs Max. - 3 Crs
    Sundaram BNP Paribas 8.70% - 9.25% Min. - 15 Lakhs Max. - 5 Crs
    Yes Bank 10.25% to 10.75% Min. - 5 Lakhs Max. - 5 Crs

    Types of Home Loan Interest Rates

    In India, two of the most predominant methods of computing interest charges on the principal amount are as below. Depending in the bank in question, you may be offered both or either of them at the time of availing the loan.

    Fixed Rate Home Loans:

    In this system of computation, the rate remains even throughout the loan tenor. There will be no change in the interest charges since the rate remains fixed. Depending on the offer, you may be allowed to switch over to the floating rate system after completing a certain duration into the loan tenure.

    Advantages: Since the rate remains fixed, you know how much interest charges you’re paying upfront. Your loan will be shielded from frequent rate fluctuations and saves money in a longer run if there is a hike in lending rates.

    Disadvantage: If the standard lending rates fall, you will not benefit since the interest component remains frozen.

    Floating Rate Home Loans:

    As the name suggests, the interest charges on your home loan is subject to the current most lending rates of the bank. The rate is linked to the latest published rate of the bank which in turn depends on multiple factors such as RBIs monetary policy and lending rate revisions, the bank’s response to the revision etc.

    Advantage: The most visible perk of opting for the floating rate is that you have the advantage of being billed on the basis of the latest rate. If the rates fall, you save on interest charges.

    Disadvantage: In rare scenario, if the standard rates go up, the loan has to be bear the brunt of being billed a higher rate.

    Important Note: Some banks allow you to switch from fixed to floating or vice versa, after a stipulated time, say 5 years into the loan. Make sure to inquire about switching at the time of availing the loan and opt for it to make the best use of fluctuating rates in your favor.

    Factors To Follow While Applying for a Home Loan

    Buying a house is not easy. You have to make sure that the size is right, location is good, area is safe, electricity and water are present 24x7, etc. The most important thing that you have look at is the cost of the house and the way you plan to finance it. One of the best ways is to apply for a home loan.

    There are many banks in India that offer amazing home loan schemes at affordable rates of interest. If you are confused and unable to decide which scheme you should apply for, then you must follow the rules mentioned below:

    • Compare Interest Rates – If you find a home loan scheme with the lowest rate of interest, do not apply for it in a haste. Look at all the terms and conditions associated with the scheme and try to find out why the rate is so low compared to other house loans. Experts advise people to compare the interest rates of different house loan schemes before applying. There are many websites today that allow users to compare the home loans offered by different banks on one platform.
    • Read Lender’s History – Before you borrow a home loan from a bank or any other lender, ensure that you are familiar with its history. Loans are a liability and can result in huge financial problems if you borrow money from an unknown or untrusted lender. Today, the internet has made it easy to find out the history of any lender. You have to look for news about the different lenders online, read up on their history and check out reviews of the services and products they offer. You can also contact mortgage brokers or experts to find out information about any lender.
    • Make a Down Payment – While applying for a home loan, ensure that you make a down payment. Do not be attracted by schemes that do not require any down payment. If you apply for a home loan without paying any money upfront, then you might not realise and pay more interest. Also, the more money you pay as down payment, the lower your EMIs will be, which means that you will be able to repay your loan earlier.
    • Read the Fine Print – It is very important that you read the fine print before you take a home loan. It may look long and you may be lazy, but reading it will save you from future shocks. The fine print document will contain all the information and term and conditions related to the loan you plan to apply for. If you are unable to understand the clauses mentioned in this document, then ask the help of a Chartered Accountant.
    • Understand the Fees and Charges – There are many fees and charges associated with a home loan such as late payment fee, prepayment fee, processing fee, legal charges, documentation charge, etc. You should make yourself aware of all these fees and charges. Ask the lender to give you a list of all the fees in writing.

    These are only some of the many rules that you must follow while applying for a home loan. Apart from the above, you should also find out about the tax benefits on home loan and how you can claim them. Once you get your home loan, make sure you pay the EMI on time every month.

    How to Calculate The Effective Interest Rate:

    The applicable interest rate on home loan consists of two components, the base rate and markup rate. The combination of two is what you will be paying on the loan. Let's explore these components to give you a better understanding.

    Base Rate: It is the standard lending rate of the bank, applicable for all retail loans. This rate is subject to frequent changes on the basis of multiple inputs. For example, the current base rate of Axis Bank is 9.45%. Base rate is published on the official website of the bank.

    Markup: This component of a small percentage is added to the base rate to arrive at the EIR (Effective interest rate) for a specific type of home loan and varies from one type to another.

    Effective Interest Rate (EIR) = Base Rate + Markup:

    From April 2016 onwards, the Reserve Bank of India (RBI) has mandated a new method for computing lending rate to replace the base rate system. The Marginal Cost of Funds based Lending Rate (MCLR) is aimed at bringing more accountability and flexibility to the way rates are published by banks and financial institutions in India. RBI mandates banks to fix the interest rate after studying the risk factor associated with lending to borrowers. It takes into account, various factors involved such as repo rate, deposits etc.

    This MCLR based computation works out to be slightly lower than the erstwhile base rate.

    Factors That Determine Home Loan Interest Rates:

    There are multiple factors driven by your background and income group which influence the rate bank offers you. Let’s look at some of leading factors to help you negotiate the best rate.

    • Income: One of the most crucial factors considered by lenders to ascertain the interest rate to be offered on your home loan. The amount of salary drawn at the end or month or revenue figures if self-employed is of much interest to banks. The industry you work and your employer also has a say along with the income factor. A stable and high income, sufficient enough to afford the loan will be rewarded with a pleasing interest rate.
    • Credit Score: Perhaps, the second most crucial determinant of the rates offered on your home loan. When you apply, the processing involves a thorough scrutiny of your credit report. It involves checks on your past and current credit. It you’re up to date with a good credit score, you’re likely to get a competitive rate. A good credit history also gives you the confidence to negotiate a good deal.
    • Location of the Property: The location and vicinity has a bearing too. If the property is situated in a prime location or is being procured from a trusted builder/agency, you can look forward to an optimal charge on the interest rate front.
    • Loan Amount: The proposed loan amount has the ability to influence the rate. The representatives are open to negotiate the rate if you’re willing to get a higher amount of loan. The thumb rule is, higher the loan amount, chances are that you will get a lower rate.
    • Type of Loan: The rates offered also depends on the types of home loan you’re availing. Standard loans such as home purchasing will come at standard rates while its counterparts like home improvement can be charged a higher rate.
    • Loan Tenure: The term opted for has a say when the bank decides the interest rate to be offered to you. Chances are that if you’re willing to opt for a longer term, the interest rate offered is lower. Make sure to check with the bank before signing up so that you can benefit from this practice.
    • Type of Interest Rate: In furtherance to the content earlier in this write up, the interest charges on your home loan is dependent on the “Fixed” or the “Floating” rate you opt for. The fixed rate is slightly higher than its counterpart.
    • Employment Type: Salaried applicants are likely to get a slightly lower rate compared to the self-employed, owing to the risks involved. Banks’ maintain separate slabs for salaried and self employed applicants.
    • Ongoing Promo Offers: Scout for promo offers made by lenders on multiple fronts. Some of these offers are made locally and some at the national level. In their quest to come up with the most customer centric schemes, lenders will tie up with multiple partners such as builders, aggregators to offer tailor made deals which includes competitive rates.

    How to Apply for a Home Loan?

    There are multiple ways to apply for a home loan. You can do so offline at a designated branch or online, over the internet. It's highly recommended that you compare various loan offers from lenders on a neutral website like bankbazaar, draw conclusions and create an application, all under a single window.

    This website provides you the right kind of resources and information to equip you with knowledge to apply and negotiate a good home loan deal. Bankbazaar has partnered with the likes of leading banks and financial institutions in public and private sector, to bring to you, customized loan deals on the basis of your background.

    Home Loan Interest Rates FAQ:

    1. I stumbled upon a term called Pre-EMI interest charges in my newly signed home loan contract. Please explain its nature.

      It is the interest applied on the loan amount disbursed by your bank. Such charges are payable every month from the time of disbursement on each release. Pre-EMI interest will continue to be applied until EMI payments start.

    2. Do I get any tax benefits for the interest charges paid on my housing loan?

      Yes, you can claim deduction for the interest charges paid on your home loan under Section 24 of the Income Tax Act. The cap on the tax deduction you can claim on interest paid is Rs.2 lacs for self-occupied property. For a let out property, there is no ceiling prescribed under this section.

    3. Do banks charge for switching over from fixed to floating rate or vice versa?

      Yes, there will be a fee derived on the basis of a percentage of the outstanding loan amount in the account, subject to a minimum amount. For loans with part disbursals, the fee is calculated on the outstanding principal along with the undisbursed value of the loan amount sanctioned.

    4. How does an increase in interest rate affect my repayment? I am currently under the floating rate system?

      With your consent, the bank will make an attempt to increase the loan term to save you from the burden of having to pay additional interest charges. After this change, if the EMI does not cover the interest charges, there will be an increase in the EMI amount. The standard system varies from bank to bank.

    5. Do banks charge for making changes in the EMI amount due to change in the interest rate? My loan is under the floating rate system?

      Generally, there is no charge levied for such changes. However, the amendment is subject to reassessment of your loan repayment history. You may be required to produce additional documents in this regard.

    News About Home Loan Interest Rates

    • HDFC brings down home loan rates and aligns with SBI

      HDFC brought down home loan interest rates for new borrowers by 15 basis points. For an HDFC home loan of up to Rs.30 lakh, the interest rate for female borrowers will be 8.35% and for other borrowers, it will be 8.40%. These interest rates are currently the lowest interest rates in the industry. When you go for a loan of up to Rs.75 lakh, you will have to pay the same interest rate of 8.5% which has not been changed.

      ICICI Bank reduced its interest rates by 30 basis points. A salaried female borrower will be required to pay only 8.35% now. Other borrowers will have to pay only 8.4%. LIC Housing launched a brand new home loan scheme known as Griha Siddhi. This scheme is offered at an attractive interest rate of 8.35% to female borrowers. In the beginning of this month, State Bank of India reduced its home loan rates by 25 basis points.

      Banks are working towards decreasing the home loan rates as the demand for other types of loans is comparatively less. The focus on home loans is also due to a programme known as Housing for All which has been started by the government that aims to make every Indian a house owner by 2022.

      22nd May 2017

    • Lower Interest Rates Not immediately Available To Existing Home Loan Borrowers

      While new home loan borrowers get to benefit from low rates of interest being offered, existing loan borrowers will not quite be able to reap that benefit. Existing home loan borrowers who have taken home loans on a floating interest rate basis will not be getting any immediate respite and will have to wait until the next reset date for the marginal cost of funds based lending rate (MCLR). To add to this, existing borrowers may also have to pay some charges in order to lower their home loan interest rates.

      Several leading banks like State Bank of India, ICICI Bank, HDFC Bank, Bank of Baroda and Bank of India have lowered interest rates to 8.35% on home loans of up to Rs.30 lakh. However, this rate is only applicable to salaried women borrowers. The interest rate for other borrowers is fixed at 8.40%, for home loans iup to Rs. 30 lakh.

      18th May 2017

    • HDFC, ICICI Bank cuts home loan interest rates to 8.40%

      Following the reduction in home loan interest rates by the State Bank of India, HDFC Bank, and LIC Housing Finance, ICICI Bank has decided to slash its rate by up to 30 basis points to stand at 8.40%. This is applicable for home loans that amount to a maximum of Rs.30 lakhs.

      This reduction will ensure that salaried borrowers can get home loans at the lowest rate from the bank. Salaried women borrowers are also eligible for home loans at a rate of 8.35% from ICICI Bank. The reduced rates are applicable from 15th May, 2017 for new customers.

      Borrowers can also link their home loans with I-MCLR-6 Months or I-MCLR-1 Year, flexibility that is not offered by any other bank. Additionally, customers have the choice of opting for floating interest rates or a combination of fixed and floating interest rates on the loan.

      17th May 2017

    • State Bank of India reduces the interest rate for home loans

      State Bank of India announced that there has been a reduction of 25 basis points in the housing loans. This has brought down the interest to 8.35% for all the new borrowers. According to the new scheme designed by the Government of India, loans worth Rs.30 lakh qualifies as affordable housing loans.

      For all the male borrowers, the offer is valid till 31st of July, 2017. It is a limited period offer and there is a reduction of 20 bps. This information was stated by Rajnish Kumar, Managing Director of State Bank of India. For salaried women, reduction in rate will be 25% and for the non-salaried women, there will be a cut by 20 basis points. 100 basis points is equal to one percentage point. Rajnish Kumar added that people will be able to save an amount of Rs.530 on their monthly EMIs.

      16th May 2017

    • RBI is assessing home loan and GST factors

      The Goods and Services Tax (GST) roll out in July has forced Reserve Bank of India (RBI) to be cautious regarding the interest rates related to home loans. The borrowers will have to wait and figure out the new GST norms pertaining to the home loan policies. The government has already rolled out subsidy for the borrowers who fall in the middle income groups. The GST related to home loans are currently unclear for the borrowers. RBI’s interest rates for home loans might be reviewed in the coming days following the roll out of GST.

      3rd May 2017

    • RBI to Keep Interest Rates Stable for 18 Months

      In February, RBI decided to follow a neutral monetary policy and keep interest rates stable for the next 18 months. Recently, the central bank increased a secondary rate and kept the repo rate steady to take care of the extra liquidity that was generated because of demonetization. Economists want the repo rate to stay 6.25% until the 4th quarter next year and reverse repo rate to stay at 6%. Consumer prices increased by 3.81% last month.

      26th April 2017

    • Good CIBIL score can help you get a home loan easily

      Getting a home loan can be perceived as a complicated task, however, if you have a good CIBIL score, it can help you get a home loan effortlessly. When you apply for a home loan, your lender (Bank) will carry out a credit check to determine whether a loan can be provided to you. Your application's approval highly depends on the health of your credit score. Moreover, banks also rely on credit score to determine if a credit card can be given to you. By taking care of the timely payments of your debt and by managing your credit wisely can help you improve your credit score. You can get in touch with any of the credit bureaus in India to check your credit score before applying for a loan or a credit card. A good credit score helps in negotiating the loan interest amount as well.

      22nd April 2017

    • Homes are within reach for people these days, a report says

      According to a report published on a popular daily, homes have become a lot more affordable in the last few years. This is despite the fact that inflation has ravaged the economy by a significantly large margin.

      Also, with the Union Budget putting more emphasis on affordable housing, more and more people will be able to afford home these days.

      Another reason for this, the report said, is the issue of home loan interest rates, which currently stands at 8.5% as opposed to 17.5%.

      21st April 2017

    • Factors that Influence the Price of Properties

      Prices of residential properties is often on the rise, but the increase in some locations is way more than that in others. So what exactly causes the increase in property prices in some localities? Here, we will look at some of the main factors.

      Firstly, there is demand and supply. When demand is high, prices of properties are on the rise as there is not enough supply to cater to the demand. Then there is fiscal inflation, which is a result of the circulation of excess money. Due to a decline in the value of money, property prices increase. Another factor that affects property prices is the cost of borrowing, When the interest rates on home loans increase, the demand for properties drops and fewer buyers are able to afford it.

      18th April 2017

    • Home Loan Interest Subsidy Scheme Helps Borrowers

      Home loan interest subsidy scheme introduced by the Central Government have made borrowers very happy. This scheme came into effect from January, 2017 and it offers a maximum interest subsidy of Rs.2.3 lakh to Rs.2.35. The subsidy is available to people belonging to the middle-income category who want to purchase under construction and ready-to-use properties. The scheme has divided middle-income category into 2 segments. One is people whose annual income is Rs.6,00,001 to Rs.12 lakh and the other one is people whose annual income is Rs.12,00,001 to Rs.18 lakhs. During last year, banks reduced the lending rate by 1% to 1.2% points, which reduced EMI of borrowers.

      13th April 2017

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