Dhanlaxmi Bank Home Loan Interest Rates
Home Loan Bank Information
Dhan Laxmi Bank Home Loan Interest Rates
The rate of interest is simply the rate at which the interest will be levied on the home loan amount over the course of loan term. There are basically two types of interest rates as mentioned below.
Fixed interest rate: As the term explains, the interest rate is fixed during the whole tenor of loan and the borrower will have peace of mind and financial stability to ensure proper loan repayment will be done gradually. It involves less risk but also come without any benefit of saving any additional funds on the interest amount.
Floating interest rate: In this category, the interest rate changes with time and depending on many factors such as economic conditions, bank or financial institutions dependencies, general market trends etc. The change in interest rate can either benefit the borrower or put them into serious trouble if the interest rates increase further in future.
Interest rates play a huge role in the whole process of loans and repayments. Consider the below example.
Loan amount: Rs 50 lakh
Tenure: 30 years
Interest rate: 11%
At 11% interest rate with the above parameters, it will take 360 EMI Payments and repay Rs. 17,141,821 consisting a total Interest amount of Rs. 12,141,821. As one can see that out of a 100% amount, 71% of it is just the interest amount accrued over time.
In the same situation, let’s consider a rate of 7.5% requiring 360 EMIs covering Rs. 12,585,861 and an interest amount of Rs. 7,585,861. In the second scenario the interest percentage has reduced to 60% of the total value.
Hence, negotiating on the rate of interest is very important before one files the application as it can save up life changing money in future.
Dhan Laxmi Tenor based MCLR
Interest rates based on ‘Marginal Cost of Funds Based Landing Rate’.
| Tenor | Rate |
|---|---|
| Overnight MCLR | 8.60% |
| One Month MCLR | 8.60% |
| Three Month MCLR | 8.90% |
| Six Months MCLR | 9.70% |
| One Year MCLR | 9.90% |
Floating Rates of Interest
| Type | Rate | Processing Fee |
|---|---|---|
| Dhanm Home Loan | 9.90% to 10.15% |
1% of the loan amount, but a minimum Rs.10,000 + GST Non-Refundable charges on application: |
| Dhanm Home Loan Surrogate | 10.40% to 12.90% |
Dhan Laxmi Bank Fees & Charges
| Fees & charges | Amount |
|---|---|
| Processing fees: | |
| Home loans (HL) | 1.00 % of loan amount + service tax (subject to minimum of Rs. 10,000 + service tax) |
| Loan against property (LAP), • Lease rent discounting (LRD) • Commercial property loans (CP) |
1.50 % of loan amount + service tax (subject to minimum of Rs. 10,000 + service tax) |
| Non‐refundable processing fees payable at the time of application (included in the processing fees) |
Loan Amount Charges Up to Rs. 20 Lacs Rs. 3500 + service tax Above Rs.20 Lacs Rs. 5000 + service tax |
| Cheque bounce charges | Rs. 500 + service tax |
| Late payment charges | 3% per month |
| Cheque swap charge | Rs. 500 + service tax |
| Facility statement charges (nil for 1 statement every half yearly |
Rs. 500 + service tax |
| NOC issuance charges (nil for first NOC) | Rs. 500 + service tax |
| Document retrieval charges | Rs. 500 + service tax |
| EMI cycle change | Rs. 500 + service tax |
| Foreclosure statement charge | Rs. 200 + service tax |
| Switch charges (Floating to fixed and vice versa only if the product exists at the time of request and is permitted by the bank) |
3% + service tax of the loan outstanding |
| Escrow account charges (wherever applicable) | Rs 10,000 plus service tax p.a. The first-year charges will be payable at the time of disbursement. The subsequent charges will be debited at the beginning of each financial year. |
| Facility cancellation charges | Rs. 2000 + service tax plus interest charges from disbursement date till cancellation request |
| Part prepayment Charges | Part prepayment can be done after 6 months from date of first disbursement. Subject to minimum of Rs. 50,000 and maximum of 25% of the loan outstanding at the beginning of the financial year. One payment allowed every financial year. All part prepayments made 12 months prior to the foreclosure of the loan will be charged at the applicable foreclosure rate at the time of foreclosure |
| Foreclosure Charges | Home Loan – NIL (w.e.f 01.02.2012) Loan Against Property / Commercial Property Loan / Lease Rental Discounting ‐ 5% + service tax in the first 12 months from date of 1st disbursement. 3% + service tax for loans foreclosed between 12‐24 months from date of 1st disbursement. 2% service tax thereafter. The charge is levied on the loan outstanding at the time of foreclosure. |
| Stamp duty (Facility documentation & Property) + Registration |
As per actual |
| Legal, repossession and incidental Charges | As per actual |
| Insurance premium | As per actual |
| Creation of charge with ROC | As per actual |
| Customer Credit Information Report ‐‐(Credit Bureau) |
Individual Customers – Rs. 200 per report, non-Individual Customers – Rs.750 per report |
| Any other charge | As per sanction letter |
Features
More Flexibility
- A relatively high loan amount with respect to salary
- Repayment tenor ranging from good 1 to 30 years.
- Interest rates that are very attractive in relation to market rates.
- Most simple documentation processes
- Flexible service including door to door option.
- EMI options like step up, step down etc. where individuals can decide as per their needs and financial stability.
Customized Schemes
- Loan evaluation is not just based on one’s financials but also the career stability, nature of industry and other such aspects are taken into consideration.
- Special programs and terms & conditions for self-employed applicants
- To manage any outstanding home loans, a Mortgage Reducing Term Assurance (MRTA) insurance plan is available (in individual’s absence).
Transparency
- Processing fee only one time and Cleary explained.
- Hidden charges are a big No.
- Post loan hassles are nowhere to be seen.
Refinance features
- Refinance availability is facilitated within 12 months for the payments done to acquire home.
- On existing home loans, comparatively lower interest rates on availing balance transfer.
- Depending on the loan terms, additional top up loan amount is available for personal or commercial usage.
FAQs
What is the benefit of floating interest rate?
Floating interest rate can reduce the interest amount paid over time significantly in case the rates go down in future due to dynamic market trends and country’s economic conditions.
Does Dhan Laxmi bank has specific schemes available for NRIs?
Yes, Dhan Laxmi bank has customized loan schemes available for NRI/PIO/IOCs to avail loan via a seamless and hassle-free application process.
What is the benefit of fixed interest rate?
Borrowers will have the confidence of repaying the loan as there is little instability in the repayment and loan structure. The rate of interest is fixed and the amortization is almost identical to what was confirmed.
What documents are required for NRI applicants?
For NRIs/PIOs, the below specified documents are needed.
- Verified/attested Indian passport with Visa
- Valid work permit
- Employment contract
- Continuous discharge certificate (if applicable)
- Employment details with all previous organizations
- Previous 6 months bank account statement
- Residence proof
- If self-employed, mandatory to provide income proof
- Labor card or Identity card
- Salary pay-slip duly verified
What is the max tenor available at Dhan Laxmi bank?
A maximum tenure of 30 years is available.