Home loan interest rates and EMI in top 15 banks, in May 2021


Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in May 2021, to help you make the right choice

Following the massive spike in Coronavirus cases in the second wave of the COVID-19 pandemic, many states have initiated lockdowns. Construction activities have almost stopped in many major real estate markets. However, banks are now aggressively pushing their home loan products, to entice customers. Large banks have reduced their interest rates on home loans by around 0.25% per annum, to attract home buyers. The Reserve Bank of India (RBI) has also come forward, to offer relief to small businesses, MSMEs and individuals. The RBI governor recently announced measures, including restructuring of loans of up to Rs 25 crores for individuals and small businesses under a Resolution Framework 2.0, as well as a liquidity facility of Rs 50,000 crores for healthcare and SLTRO (special long term repo operation) for small finance banks.

Home loan interest rates in the coming months will depend on factors such as Inflation rate and monsoon forecast for 2021. Due to the large number of COVID cases, labours have returned to their home towns, from cities. Consequently, construction activities may take some time to resume. Steel and cement prices have skyrocketed in the last few weeks but its impact has not yet been reflected in property prices. If you are looking to buy a home, then, in the present market, you can get property choices at good rates and home loans at a very low interest rates, as well. However, it would be important to bear in mind that the interest rate will not remain at this level for a long time. So, you should be prepared to pay a higher EMI in the near future.

See also: How to pay home loan EMIs in case of job loss due to the Coronavirus pandemic?

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years’ tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

6.9-8.55

769-871

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

6.75-8.35

760-858

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

6.95-8.35

772-858

0.25% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

6.9-8.9

769-893

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

6.85-7.3

766-793

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Indian Bank

7.0-7.40

775-799

0.230% on the loan amount, with a maximum of Rs 20,470.

HDFC Ltd

6.75-7.85

760-827

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

6.75-7.75

760-821

0.50% of the loan amount, plus applicable taxes.

IOB

7.05-7.3

778-793

0.5%, up to Rs 25,000.

PNB

6.80-7.85

763-827

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

6.70-7.40

757-799

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

South Indian Bank

7.95-9.45

833-929

0.50% of the loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

6.90-7.25

769-790

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

6.65-7.30

754-793

0.25% to 1%, plus GST.

Union Bank

6.8-7.40

763-799

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on May 11, 2021.

See also: Best banks for home loans for women

 

Tips to get a good deal 

home loan interest rates all banks 2020

 

Even though a slight change in interest rates makes a lot of difference, when it comes to the overall cost of the home loan repayment, buyers must be mindful of the fact that rates are not the only criterion, based on which they should decide their lender. Also factor in who your lender is and how efficient they have been in the past, in passing on the rate cut benefits to their customers. Just like developers, you also have to select your lender with utmost caution.

 


Home loan interest rates and EMI in top 15 banks, in April 2021

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in April 2021, to help you make the right choice

April 13, 2021: In the last one month, the economic situation has suddenly taken a hit, due to the surge in COVID-19 cases. Several states are now on the verge of initiating lock-downs, to stop the spread of the virus. Consequently, the real estate market is also once again facing challenges, with disruption in demand and supply. Home loan interests, however, continue to be favourable for the home buyers, as banks have maintained their low interest rates on home loans. In its latest monetary policy committee (MPC) meet, the RBI unanimously voted to maintain the key policy rate at the current level. The central bank also cited the chances of supply-side disruption and subdued demand that can cause difficulty in economic recovery.

The surge in Coronavirus cases and chances of lockdown, have the potential to increase the risk for the home buyers. If you are planning to buy a home, then, you must be absolutely sure that you will be able to repay the loan on time. If you have any doubt related to your income, like job loss or salary reduction, then, you may delay the home buying decision. If you are an existing home loan borrower, then, you should try to repay the loan quickly and take advantage of the low interest rate.

Home loan interest rates are expected to remain stable in the coming weeks. However, banks may adjust their risk premium, if their NPAs rise, amid the increase in Corona cases. So, try to maintain a good credit score to keep getting the benefit of low interest rates on home loans.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years’ tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

6.9-8.55

769-871

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

6.75-8.35

760-858

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

6.95-8.35

772-858

0.25% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

6.9-8.9

769-893

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

6.85-7.3

766-793

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Indian Bank

7.0-7.40

775-799

0.230% on the loan amount, with a maximum of Rs 20,470.

HDFC Ltd

6.70-8.0

757-836

For salaried individual and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

6.70-8.05

757-840

0.50% of the loan amount, plus applicable taxes.

IOB

7.05-7.3

778-793

0.5%, up to Rs 25,000.

PNB

6.80-7.85

763-827

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

>=6.95

>=772

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

South Indian Bank

7.95-9.45

833-929

0.50% of the loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

6.90-7.25

769-790

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

6.65-7.30

754-793

0.25% to 1%, plus GST.

Union Bank

6.8-7.40

763-799

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on April 12, 2021.

 


Home loan interest rates and EMI in top 15 banks, in March 2021

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in March 2021, to help you make the right choice

March 15, 2021: In the last one month, home loan interest rates have touched new lows. Presently, the home loan interest rate has come down to as low as 6.65%. Most of the banks are now offering their lowest rate at around 6.7% per annum. The rates have fallen, after banks reduced their spread, although the repo rate stands at the same level, at 4%. It shows that banks are now aggressive in deploying the idle funds to borrowers.

Bond yields are rising across the globe and India may soon witness the same trend. This means, there are chances that the interest rate trend could reverse in the coming months. In February 2021, retail inflation had jumped to 5.03%. With a continuous rise in crude oil prices, inflation is expected to surge in the near future. Therefore, the Reserve Bank of India (RBI) may change its stance any time and start taking steps, toward tightening the monetary policy. Home loan interest rates are directly linked to the repo rate and hence, a reversal in the interest rate trend will result in an increase in the borrower’s EMI load immediately.

If you are looking to apply for a home loan, you must factor-in the chances of a hike in interest rates, in the near future. Avoid applying for a loan, if you are financially unprepared to cope with an interest rate hike.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years’ tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

6.9-8.55

769-871

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

6.85-8.20

766-849

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

6.95-8.35

772-858

0.25% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

6.9-8.9

769-893

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

6.85-7.3

766-793

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Indian Bank

7.0-7.40

775-799

0.230% on the loan amount, with a maximum of Rs 20,470.

HDFC Ltd

6.70-8.0

757-836

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

6.70-8.05

757-840

0.50% of the loan amount, plus applicable taxes.

IOB

7.05-7.3

778-793

0.5%, up to Rs 25,000.

PNB

6.80-7.75

763-821

Full waiver of upfront / processing fees and documentation charges during new year bonanza period from January 1, 2021 to March 31, 2021.

SBI

6.7-7.2

757-787

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and a maximum of Rs 30,000, plus GST.

*100% waiver on processing fee.

South Indian Bank

7.95-9.45

833-929

0.50% of the loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

6.90-7.25

769-790

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

6.65-7.30

754-793

0.25% to 1%, plus GST.

Union Bank

6.8-7.40

763-799

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on March 15, 2021.

 


Home loan interest rates and EMI in top 15 banks, in February 2021

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in February 2021, to help you make the right choice

February 12, 2021: The last one month has witnessed several developments. The much-awaited Budget 2021 was announced on February 2, 2021 and the Reserve Bank of India announced its bi-monthly monetary policy review on February 5. In the monetary policy committee (MPC) meeting, the RBI kept the repo rate unchanged. This means, the interest rate on home loans is expected to remain at its current level in the coming weeks. Retail inflation also eased to 4.06% in January 2021; it was 4.59% in December 2020. If inflation further comes down in February 2021, then, the RBI could cut the repo rate further, in a bid to boost economic growth. Rising crude oil prices, however, remain a concern that can push inflation higher in the coming days.

The government has not yet extended the last date for the PMAY-CLSS. For those planning to buy a home, it is better to do so, before March 31, 2021, to avail of the PMAY-CLSS benefit. Most of the banks are now offering their lowest interest at around 6.8% level and some banks have also waived their processing fees. Some states have reduced the circle rates, as well. So, if you want to buy a home on loan, then, this may be an ideal time.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years’ tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

6.9-8.55

769-871

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

6.85-8.20

766-849

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

6.95-8.35

772-858

0.25% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

6.9-8.9

769-893

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

6.85-7.3

766-793

0.50% of the loan amount, subject to a maximum Rs 20,000.

Indian Bank

7.0-7.40

775-799

0.230% on the loan amount, with a maximum of Rs 20,470.

HDFC Ltd

6.80-8.0

763-836

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

6.80-8.05

763-840

0.50% of the loan amount, plus applicable taxes.

IOB

7.05-7.3

778-793

0.5%, up to Rs 25,000.

PNB

6.80-7.75

763-821

Full waiver of upfront / processing fees and documentation charges during the new year bonanza period from January 1, 2021 to March 31, 2021.

SBI

6.8-6.95

763-772

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and a maximum of Rs 30,000, plus GST.

*100% waiver on processing fee.

South Indian Bank

7.95-9.45

833-929

0.50% of the loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

6.90-7.25

769-790

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

6.75-8.45

760-865

0.25% to 1%, plus GST.

Union Bank

6.8-7.40

763-799

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on February 12, 2021.

 


Home loan interest rates and EMI in top 15 banks, in January 2021

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in January 2021, to help you make the right choice

January 12, 2021: With the start of 2021, the real estate sector is hoping for a robust recovery after a sluggish growth in activities in 2020. Home loan interest rate continuously fell in 2020 and ended with in the low range of around 6.75% to 7%. The Reserve Bank of India (RBI) kept key policy rates unchanged in the last meeting of 2020. However, it kept the option open for a rate cut, depending on whether the inflation rate falls or rises in the near future. If the CPI rate falls below the RBI’s expectation, then, it may allow the central bank to ease policy rates, to further stimulate economic growth. However, any rise in crude prices can dampen the hopes of a rate cut. Some of the large private and public banks are now offering their lowest home loan interest rates at below 7% level and have also considerably slashed their processing fees. In the coming weeks, the union budget 2021 will be another big factor that would impact the interest rate trend.

It is time for home loan borrowers to start thinking about various ways through which they can manage their EMIs, if the interest rate trend reverses and rates starts inching up.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years’ tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

6.9-8.55

769-871

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

6.85-8.20

766-849

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

6.95-8.35

772-858

0.25% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

6.9-8.9

769-893

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

6.85-7.3

766-793

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Indian Bank

7.0-7.40

775-799

0.230% on the loan amount, with a maximum of Rs 20,470.

HDFC Ltd

6.90-8.0

769-836

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

6.90-8.05

769-840

0.50% of the loan amount, plus applicable taxes.

IOB

7.05-7.3

778-793

0.5%, up to Rs 25,000.

PNB

6.80-7.75

763-821

Full waiver of upfront / processing fees and documentation charges during the new year bonanza period from January 1, 2021 to March 31, 2021.

SBI

6.8-6.95

763-772

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and a maximum of Rs 30,000, plus GST.

*100% waiver on processing fee.

South Indian Bank

7.95-9.45

833-929

0.50% of the loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

6.90-7.25

769-790

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

6.75-8.45

760-865

0.25% to 1%, plus GST

Union Bank

6.8-7.40

763-799

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on January 11, 2021.

 


Home loan interest rates and EMI in top 15 banks in 2020

Home loan interest rates and EMI in top 15 banks, in December 2020

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in December 2020, to help you make the right choice

December 11, 2020: In spite of the Coronavirus pandemic, the real estate market in metropolitans and several big cities, has shown signs of revival, following the festive season 2020. However, some realty experts feel that the positive turnaround may not last long, if the COVID-19 vaccine is delayed any longer. While the supply side has shown signs of revival, there are still concerns over the consumption side. Lenders are still facing the risk of loan repayment defaults.

In the Monetary Policy Committee (MPC) meeting held on December 4, 2020, the Reserve Bank of India (RBI) reiterated an ‘accommodative’ stance, while maintaining status quo on policy rates. The repo rate remained unchanged at 4%, whereas the reverse repo rate also stayed at 3.35%. Elevated inflation is the main concern that the Indian economy is facing, along with other hurdles in growth recovery. Consequently, the interest rate is expected to remain stable in the coming weeks and if inflation recedes, the RBI may come out with support for the consumption-side, by cutting rates.

Post the festive period, banks are continuing with low home loan interest rates. Some banks are also offering home loans with zero processing charges. If you are looking to apply for a home loan, then, you must compare the rates charged by different lenders, based on your prevailing credit score. It can help you to get a loan at a cheaper interest rate, because the risk premium charged by different banks (on the same level of credit score) may vary significantly.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years’ tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

6.9-8.55

769-871

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

6.85-8.20

766-849

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

6.85-7.75

766-821

0.25% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

6.9-8.9

769-893

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

6.85-7.3

766-793

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Indian Bank

7.0-7.15

775-784

0.230% on the loan amount, with a maximum of Rs 20,470.

HDFC Ltd

6.90-8.0

769-836

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

6.90-8.05

769-840

0.50% of the loan amount, plus applicable taxes.

IOB

7.05-7.3

778-793

0.5%, up to Rs 25,000.

PNB

6.80-7.75

763-821

Full waiver of upfront / processing fees and documentation charges during the festival bonanza period from September 7, 2020 to December 31, 2020.

SBI

6.95-7.6

772-812

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

South Indian Bank

7.95-9.60

833-939

0.50% of the loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

7.15-7.25

784-790

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

6.75-8.45

760-865

Up to 0.5%, plus GST.

Union Bank

6.8-7.40

763-799

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on December 11, 2020.

 


Home loan interest rates and EMI in top 15 banks, in November 2020

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in November 2020, to help you make the right choice

November 12, 2020: Festive season is on and the housing market is expecting a revival in demand. Banks have already lowered their home loan interest rates, which are now as low as around 6.75%. Sectors like auto, steel, cement, etc., have shown some signs of revival that indicate chances of a surge in housing demand, as well. The finance minister has also indicated that the government will take all measures, to improve economic demand. The Reserve Bank of India (RBI) has continuously taken steps for monetary easing and in the near future, it is expected to slash the interest rate further.

The global economy is also showing signs of stability as the US election is now over. Several pharmaceutical companies are also claiming high efficacy for their COVID-19 vaccines. The stock markets in India and other major economies have bounced back to all-time highs in the hope of a vaccine.

Earlier, the government had announced an ex-gratia as revert payment, for the difference between compound and simple interest, on loans charged for the six-month moratorium period  during the lockdown. Banks have already started payment of the ex-gratia into the accounts of the borrowers. So, on your home loan for which interest was accrued during the six months (March 1, 2020 to August 31, 2020), the banks will now credit your account with an amount that would be equal to the difference between compound and simple interest on the loan amount.

The last date to opt for loan structuring is December 31, 2020. The interest on home loans is expected to remain at the current level, in the coming weeks. Inflation and festive season demand, will determine the interest rate trend in the next few weeks.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years’ tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

7.75-8.55

821-871

Up to 1% of the Loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

6.85-8.20

766-849

0.25% to 0.5% of the loan amount (Rs 8500 to Rs 25,000).

Bank of India

6.85-7.75

766-821

0.25% of loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

6.9-8.9

769-893

0.50% (Minimum of Rs 1,500 and maximum of Rs10,000).

Central Bank

6.85-7.3

766-793

0.50% of the loan amount, subject to maximum of Rs 20,000.

Indian Bank

7.0-7.15

775-784

0.230% on loan amount, with a maximum of Rs 20,470.

HDFC Ltd

6.90-8.0

769-836

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

6.90-8.05

769-840

0.50% of the loan amount, plus applicable taxes.

IOB

7.05-7.3

778-793

0.5%, up to Rs 25,000.

PNB

7.10-7.75

781-821

Full waiver of upfront / processing fees and documentation charges during the festival bonanza period from September 7, 2020 to December 31, 2020.

SBI

6.95-7.6

772-812

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

South Indian Bank

7.90-9.55

830-935

0.50% of the loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

7.15-7.25

784-790

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

6.75-8.45

760-865

Up to 0.5%, plus GST

Union Bank

6.8-7.40

763-799

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on November 11, 2020.

 


Home loan interest rates and EMI in top 15 banks, in October 2020

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in October 2020, to help you make the right choice

October 13, 2020: The first meeting of the reconstituted Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) came up with some pleasant surprises. While key policy rates were kept unchanged, the RBI announced measures to improve liquidity in the market. The RBI announced to rationalise the risk weight by simply linking it to the Loan-to-Value (LTV) ration and relaxing the norm of linking the risk weight to size of the loan. It will be applicable to all loans sanctioned up to March 31, 2022. If the LTV in a home loan is less than or equal to 80%, then, a risk weight of 35% will be applicable, whereas if the LTV is greater than 80% and less than or equal to 90%, then, a risk weight of 50% will be applicable. The move is expected to reduce the home loan interest rate in the coming weeks and allow reduction in the EMIs for a large number of home loan borrowers.

See also: RBI Monetary Policy review: Repo rate unchanged at 4%

Banks have now started coming up with offers on loan restructuring for their customers. If you are looking to opt for loan restructuring, then, check out the resolution plan offered by the lender and carefully read the fine print. The loan restructuring may reflect in the borrower’s credit report and in that case, it will reduce the borrowing capacity to that extent. During the ongoing case in the Supreme Court (SC), the centre has agreed to waive the compounded interest on loans of up to Rs 2 crores, which was incurred during the moratorium period. The interest relief will be allowed, irrespective of whether the borrower had availed of the moratorium benefit or not. This will help a large number of home loan borrowers, who are facing a liquidity crunch.

In the near future, the interest rate may witness some downward correction. Despite expectation of a subdued festive season, builders and banks have come up with several festive offers. Some banks have waived off the processing fees on home loans during the festive period.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

7.75-8.55

821-871

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

7.0-8.35

775-858

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

6.85-7.75

766-821

0.25% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

6.9-8.9

769-893

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

6.85-7.3

766-793

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Indian Bank

7.15-7.5

784-806

0.230% of the loan amount, with a maximum of Rs 20470.

HDFC Ltd

6.90-7.85

769-827

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500. whichever is higher.

(Taxes extra)

ICICI Bank

6.90-8.05

769-840

0.50% of the loan amount, plus applicable taxes.

IOB

7.05-7.3

778-793

0.5%, up to Rs 25,000.

PNB

7.10-7.75

781-821

Full waiver of upfront / processing fees and documentation charges during the Festival Bonanza Period from September 7, 2020 to December 31, 2020.

SBI

6.95-7.6

772-812

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and a maximum of Rs 30,000, plus GST.

South Indian Bank

7.90-9.40

830-926

0.50% of the loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

7.15-7.25

784-790

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

7.10-9.3

781-919

Up to 0.5%, plus GST.

Union Bank

6.7-7.15

757-784

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on October 12, 2020.

 


Home loan interest rates and EMI in top 15 banks, in September 2020

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in September 2020, to help you make the right choice

September 18, 2020: Home loan interest rates have remained muted in the past one month. In spite of a spike in the number of COVID-19 cases in India, economic activity has slowly started gathering momentum, once again. The moratorium on bank loan EMIs has been extended to September 28, 2020, after an interim order by the Supreme Court of India. The centre had earlier informed the SC that the moratorium could be extended for up to two years’ tenure. The SC’s hearing on the moratorium case is expected to continue on September 18, 2020. Until then, the interest rates on home loans, are likely to remain stable.

Although the interest rates on home loans have not changed much in the last one month, now, some banks have increased the risk premium on their loan interest, for customers whose credit scores have fallen below a specific level. So, home loan borrowers should be cautious about their credit score, because their loan may become costlier, if the score falls.

See also: Options for borrowers after the home loan moratorium ends

Interest rates are expected to remain stable over the next few weeks. Factors that could impact the rates include the decision on the moratorium, tensions between India and China and the upcoming festival session. Some banks have already waived the processing fees on home loans for the upcoming festive season. If you are an end-user searching for a home, then, you may not want to miss the deals available in the current market.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

7.75-8.55

821-871

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

7.0-8.35

775-858

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

6.85-7.75

766-821

0.25 % of loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

6.9-8.9

769-893

0.50% (Minimum Rs 1,500 and maximum of Rs 10,000).

Central Bank

6.85-7.3

766-793

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Indian Bank

7.15-7.5

784-806

0.230% of the loan amount, with a maximum of Rs 20,470.

HDFC Ltd

6.95-7.85

772-827

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

6.95-8.05

772-840

0.50% of the loan amount, plus applicable taxes.

IOB

7.05-7.3

778-793

0.5%, up to Rs 25,000.

PNB

7.10-7.75

781-821

Full waiver of upfront / processing fees and documentation charges during the Festival Bonanza Period from September 7, 2020 to December 31, 2020.

SBI

6.95-7.6

772-812

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and a maximum of Rs 30,000, plus GST.

South Indian Bank

7.90-9.30

830-919

0.50% of loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

7.15-7.25

784-790

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

7.10-9.3

781-919

Maximum 2% of the loan amount.

Union Bank

6.7-7.15

757-784

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on September 17, 2020.

 


Home loan interest rates and EMI in top 15 banks, in August 2020

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in August 2020, to help you make the right choice

August 14, 2020: Over the past four weeks, most of the banks have updated their home loan interest rates, in-sync with the prevailing repo rate. However, some banks also adjusted their spread on the home loan interest. In a significant move, the Reserve Bank of India (RBI) did not announce any extension on the moratorium facility for loan borrowers, which is due to end on August 31, 2020. While announcing its monetary policy review, the RBI took an accommodative stance on the change in the policy rates and maintained a status quo on the current repo rate. In a big relief to the realty sector, the RBI allowed a one-time restructuring of term loans. The RBI has formed a five-member committee under KV Kamath, to set norms for the one-time restructuring of loans. This is likely to help a large number of home loan borrowers to avoid default and also support realty developers against financial distress. It also announced an infusion of Rs 5,000 crores to the National Housing Board, in a positive move for the liquidity-strapped realty sector.

The next four to five weeks will be crucial for home loan borrowers, considering that the moratorium period will cease, if the RBI does not come out with another extension. Home loan borrowers who have availed of the moratorium facility, should be ready to face their prevalent financial situation instead of relying on the one-time loan restructuring. The best option, would be to repay the loan outstanding instead of further delay, provided you have sufficient liquidity available. Interest rates may witness a further cut in the coming months, if the monsoon remains good and supports the agriculture sector and the banking sector also copes well, after the moratorium ends.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

7.75-8.55

821-871

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

7.0-8.35

775-858

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

6.85-7.75

766-821

0.25% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

6.9-8.9

769-893

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

6.85-7.3

766-793

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Indian Bank

7.15-7.5

784-806

0.230% of the loan amount, with a maximum of Rs 20,470.

HDFC Ltd

6.95-7.85

772-827

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

6.95-8.05

772-840

0.50% of the loan amount, plus applicable taxes.

IOB

7.05-7.3

778-793

0.5%, up to Rs 25,000.

PNB

7-7.6

775-812

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

6.95-7.6

772-812

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

South Indian Bank

7.85-9.25

827-916

0.50% of the loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

7.15-7.25

784-790

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

7.10-9.3

781-919

Maximum 2% of the loan amount.

Union Bank

6.7-7.15

757-784

0.50% of the loan amount, subject to maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on August 11, 2020.

 


Home loan interest rates and EMI in top 15 banks, in July 2020

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in July 2020, to help you make the right choice

July 14, 2020: Over the last four to five weeks, many banks have revised their home loan interest rates, in-sync with the prevailing repo rate of 4%. The lower range of interest rate on home loans offered by most of the banks, is now under the 7% level. With interest rates at highly attractive levels, along with tax benefits under Section 80C, Section 24 and Section 80EEA, as well as benefits under the PMAY CLSS (Pradhan Mantri Awas Yojana Credit-Linked Subsidy Scheme), first-time home buyers may find it extremely attractive to buy a home at this point of time. Activities in the real estate market have resumed slowly, as the unlocking process following the Coronavirus pandemic gets underway in India. However, experts believe that construction activities may not pick up pace due to the growing number of COVID-19 cases in the country. There are several reports that indicate reduction in property rates, across big cities in India.

With forecast of a good monsoon, the economy may get a chance to partially recover from the setback caused by the COVID-19 outbreak, in the second half of 2020. There is still room for further cut in interest rates by the RBI, in the coming weeks. The moratorium period announced by the RBI due to COVID-19, will end on August 31, 2020. It would be interesting to see how many borrowers resume repayment immediately after the moratorium period. A high number of non-repayments of loan EMIs, resulting in loan defaults, may increase banks’ non-performing assets (NPAs). If the COVID-19 pandemic persists longer and banks’ NPA increases, then, home loan interest rate may witness a roller coaster ride in the near future.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

7.75-8.55

821-871

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

6.85-7.85

766-827

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

6.85-7.75

766-821

0.25 % of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

6.9-8.9

769-893

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

6.85-7.3

766-793

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Indian Bank

7.15-7.5

784-806

0.230% on the loan amount, with a maximum of Rs 20,470.

HDFC Ltd

6.95-8.0

772-836

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

7.45-8.55

803-871

0.50% of loan amount, plus applicable taxes.

IOB

7.05-7.3

778-793

0.5%, up to Rs 25,000.

PNB

7-7.6

775-812

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

6.95-7.6

772-812

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

South Indian Bank

7.85-9.25

827-916

0.50% of the loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

6.9-7

769-775

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

7.35-9.7

796-945

Maximum 2% of the loan amount.

Union Bank

6.7-7.15

757-784

0.50% of the loan amount subject to maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on July 13, 2020.

 


Home loan interest rates and EMI in top 15 banks, in June 2020

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in June 2020, to help you make the right choice

June 17, 2020: As we had projected in the previous interest trend report, the RBI reduced the repo rate by 40 basis points on May 22, 2020. Now the repo rate stands at 4%. After the rate cut, several banks have reduced their interest rates, resulting in a fall in home loan rates to as low as around 6.7% to 7% per annum. In another move, the government announced an extension of the PMAY CLSS benefit to March 31, 2021. The moratorium on term loans has also been extended by three more months.

Concerns related to COVID-19 have increased, in comparison to the last month, as the total number of cases in India has surpassed two lakhs, while the government has initiated an unlock process. Constructions have resumed in many cities, amid the problem of acute labour shortage in the realty sector. A large number of labourers have returned to their hometowns, owing to the Coronavirus pandemic. Consequently, several developers have expressed their fears about possible delays in project completion, due to the shortage of labour.

If one is not facing any liquidity issue in the current market conditions and intends to buy a home for end-use, then, you may not want to miss this opportunity. Interest rates on home loans are at the lowest level in several years. Policy rates may stay at the current level for the next few months, before the RBI further relaxes the rate or changes its stance. Developers have already started slashing their property rates, to offload their existing inventory. So, you have a good opportunity to lock a favourable deal. The path that the economy takes when the lockdown is lifted and the number of Corona infections in the coming weeks, will determine the future interest rate trend.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

7.75-8.4

821-862

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

6.85-7.85

766-827

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

6.85-7.75

766-821

0.25% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

6.9-8.9

769-893

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

6.85-7.3

766-793

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Indian Bank

7.55-7.9

809-830

0.230% on the loan amount, with a maximum of Rs 20,470.

HDFC Ltd

7.5-8.65

806-877

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes Extra)

ICICI Bank

7.7-8.8

818-887

0.50% of the loan amount, plus applicable taxes.

IOB

7.45-7.7

803-818

0.5%, up to Rs 25,000.

PNB

7-7.6

775-812

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

7.35-8.0

796-836

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

South Indian Bank

8.1-9.35

843-922

0.50% of loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

6.9-7

769-775

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

7.4-9.7

799-945

Maximum 2% of the loan amount.

Union Bank

6.7-7.15

757-784

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on June 12, 2020.

 


Home loan interest rates and EMI in top 15 banks, in May 2020

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in May 2020, to help you make the right choice

May 12, 2020: Many banks have slashed their home loan interest rates, after the RBI announced a cut in the repo rate in the previous month. Presently, the interest rate has come as low as 7.1%. This may not be the end of the interest rate fall. The COVID-19 pandemic is now spreading at a greater pace than in the previous month. The government had earlier extended the lockdown period to May 17, 2020. The situation across the globe is not promising. The government is presumably printing money, to announce several financial packages. It may result in a significant spike in inflation, after a few months or a year. According to media reports, there is a huge increase in unemployment in the country. After the moratorium on loan EMI gets over, there are chances of a large number of loan defaults, across various loan products. Property prices may also come down in most of the metro and non-metro cities. To support the realty sector and to boost the economy after the lockdown period, the RBI may further reduce the interest rate by 25 to 50 basis points, in the coming months.

Various real estate organisations have demanded a cut in the circle rate (RR rate), so that they can plan to reduce property prices, in-sync with current market dynamics. If you are an existing home loan borrower, then, keep the following points in mind:

  • If your current home loan is under the base rate or MCLR system, then, switch it to the repo rate system, for getting immediate benefit of rate cuts.
  • If you are finding it difficult to repay the EMI, then, you may extend the loan tenure to lower the EMI, provided you fulfil the eligibility criteria.
  • Avoid delaying the home loan EMIs.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 7.25%-7.35% per annum and the corresponding EMI for Rs one lakh is Rs 790-Rs 796. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 790 x 30 or Rs 796 x 30 = Rs 23,700 to Rs 23,880 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

8.1-8.85

843-890

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

7.25-8.25

790-852

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

7.25-8.15

790-846

0.25% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

7.3-9.3

793-919

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

7.25-7.35

790-796

0.50% of the loan amount subject to a maximum of Rs 20,000.

Indian Bank

7.55-7.9

809-830

0.230% on the loan amount, with a maximum of Rs 20,470.

HDFC Ltd

7.85-8.75

827-884

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

7.7-8.8

818-887

0.50% of the loan amount, plus applicable taxes.

IOB

7.45-7.7

803-818

0.5%, up to Rs 25,000.

PNB

7.2-7.8

787-824

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

7.35-8.0

796-836

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

South Indian Bank

8.1-9.35

843-922

0.50% of the loan amount (Minimum of Rs 5,000 and maximum of Rs 10,000).

UCO Bank

7.3-7.4

793-799

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

Kotak Mahindra Bank

8.2-9.25

849-916

Maximum of 2% of the loan amount.

Union Bank

7.1-7.55

781-809

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purposes.

Data taken from respective bank’s website, as on May 11, 2020.

 


Home loan interest rates and EMI in top 15 banks, in April 2020

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in April 2020, to help you make the right choice

April 14, 2020: As anticipated, the RBI has announced a reduction in the repo rate by 75 basis points. Now, the repo rate stands at 4.4%. Home loan interest rates by most of the banks have also now come down by around 75 basis points.

With the Coronavirus pandemic spreading to most of the countries in the world and the number of cases still rising, the IMF has already declared that the world is in a deep recession. The current economic situation is worse than the 2008 recession. The World Bank has slashed India’s FY-21 growth projection to 1.5%-2.8%. The government of India has announced several economic packages for helping industries, agriculture and the common people. The RBI has also announced a moratorium on the repayment of home loan EMIs. So, a borrower can opt for the moratorium on home loan EMIs that fall in the period of March 1, 2020 to May 31, 2020. However, the interest will continue to accrue and it will be added to the outstanding amount. If you are facing a temporary liquidity crunch, then, you may opt for the moratorium on home loan EMI payment. If you have the capacity to repay the EMI, then, avoid the moratorium option as it will significantly increase the loan outstanding.

As the COVID-19 pandemic risks pushing India’s economy into a recession, there is still hope for a quick revival, if the growth in number of new Corona cases slows down in the coming weeks. There are expectations of more economic stimulus packages by the government in the coming weeks. The RBI may come up with more measures to help home buyers and the realty sector, in the near future. If you are an existing home loan borrower, then, take advantage of the low interest rates. You can choose to repay the same EMI that you were paying before the rate cut, as it would help you to close your home loan early.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 7.25%-7.35% per annum and the corresponding EMI for Rs one lakh is Rs 790-Rs 796. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 790 x 30 or Rs 796 x 30 = Rs 23,700 to Rs 23,880 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

8.55-9.4

871-926

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

7.25-8.25

790-852

0.25% to 0.5% of loan the amount (Rs 8,500 to Rs 25,000).

Bank of India

7.25-8.15

790-846

0.25 % of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

7.3-9.3

793-919

0.50% (Minimum of Rs 1,500 and maximum of Rs10,000).

Central Bank

7.25-7.35

790-796

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Corporation Bank

8.1-8.35

843-858

Up to 0.50% of the loan amount (Maximum of Rs 50,000).

HDFC Ltd

8-8.85

836-887

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

8.1-9.2

843-913

0.50% of the loan amount, plus applicable taxes.

IOB

8.2-8.45

849-865

0.5%, up to Rs 25,000.

PNB

7.2-7.8

787-824

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

7.15-7.8

784-824

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

Syndicate Bank

8-8.7

836-881

0.5% of the loan amount, with a minimum of Rs 500.

UCO Bank

8.05-8.15

840-846

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

United Bank

8-8.15

836-846

Not applicable.

Union Bank

7.1-7.55

781-809

0.50% of the loan amount, subject to maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

Data taken from respective bank’s website, as on April 13, 2020.

 


Home loan interest rates and EMI in top 15 banks, in March 2020

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in March 2020, to help you make the right choice

March 17, 2020: In the last one month, the fear of coronavirus has taken gigantic shape. The businesses have taken a severe hit globally. Industry’s output as well as the demand has plummeted sharply. Crude oil prices have crashed below $40 level. Amid global economic turmoil, the Indian realty market is not spared and it is also facing the heat. Many corona cases have been reported in India as well. In the coming few weeks, the realty market may witness further decline in the demand and supply. The fed has already cut the interest rate by 50 basis point and several other economies have followed the trend; however, the RBI is yet to take a step forward towards policy rate cut. Experts have the consensus that the RBI will soon cut the REPO rate by around 25 to 50 basis points in the coming days. Under the REPO based lending the home loan borrowers are expected to get the quick benefit of any further rate cut by the RBI.

In China, the coronavirus impact is alleviating gradually and, in a few weeks, it’s expected that the world will revive from the prevailing financial lock-down situation. If you are planning to buy your first home, then this is a very good time because you can get loan at a very attractive interest rate, you can negotiate with the builder for a discount and if you get the home loan sanctioned before 31st March 2020 then you can also avail the CLSS benefit provided you are eligible for it.

 

To make the selection of home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks at one place in the undermentioned table. The EMI has been calculated based on Rs 1 Lac loan for 20 years tenure. You can easily calculate the EMI for the desired amount by multiplying loan amount (In Lac) with the EMI range corresponding to selected bank mentioned in the table. For example, Interest rate mentioned for ‘Central Bank’ is 8 %-8.1% Pa and the corresponding EMI for Rs 1 Lac is Rs 836-Rs 843. Now, if you want to calculate EMI for Rs 30 Lac, then simply multiply the EMI with 30, i.e. Rs 836 x 30 or Rs 843 x 30 = Rs 25080 to Rs 25290 per Month (approx.) would be the EMI for 20 years tenure.

Interest Rate and Processing charge on Home Loan by Banks (with indicative EMI)

Lender’s NameFloating Interest Rate (% Pa)EMI per Lac (In Rs)Processing Fee
Axis Bank8.55 – 9.4871 – 926
Up to 1% of the Loan amount subject to minimum of Rs. 10,000
Bank of Baroda8.0 – 9.0836 – 900.25% to .5% of loan Amount. Rs 8500 to Rs 25000.
Bank of India8.0 – 8.9836 – 8930.25 % of loan amount
Min. Rs. 1,500/- Max. Rs. 20,000/-
*Processing charge waived up to 31.03.2020
Canara Bank8.05 – 10.05840 – 9680.50% (Min Rs.1500/- and Max. Rs.10,000/-)
Central Bank8- 8.10836-8430.50% of the Loan Amount subject to maximum Rs.20,000/-
Corporation Bank8.1 – 8.35843 – 858Up to 0.50% of loan amount (Max Rs.50,000/‐)
HDFC Ltd8 – 8.8836 – 887
For Salaried Individual and Self-Employed Professionals:
Up to 0.50% of the loan amount or Rs. 3,000 whichever is higher;
Self-Employed Non-Professionals:
Up to 1.50% of the loan amount or Rs. 4,500 whichever is higher
(Taxes Extra)
ICICI Bank8.25 – 9.35852 – 9220.50% of loan amount plus applicable taxes
IOB8.2 – 8.45849 – 865.5%, up to Rs 25000
PNB7.9 – 8.7830 – 8810.35% of the loan amount
Minimum- Rs. 2,500/
Maximum- Rs. 15,000/;
SBI7.9 – 8.55830 – 871
0.40% of the loan amount plus applicable GST subject to a minimum of Rs 10000/- and maximum of Rs 30000/- plus GST
Syndicate Bank8- 8.7836 – 881.5% of the loan amount with Min of Rs 500
UCO Bank8.05 – 8.15840 – 846
0.50% of the loan amount (Min Rs.1500/- & Max Rs. 15000/-)
United Bank8-8.15836-846Waived up to 31.03.2020
Union Bank8.05 – 8.3840 – 855
0.50% of the loan amount subject to maximum of Rs. 15,000 (plus applicable tax).

Note:

Interest rate are based on the floating rates system. Rate may be subject to a revision after a specified tenure depending on the bank’s t&c. The EMI range is indicative and calculated on the basis of interest rate range as provided in the table. In actual situation it may include other charges and fees as per bank’s t&c. Actual applicable interest rate may vary based on the credit profile of the loan applicant. Table data is only for the illustration purpose.

Data taken from respective bank’s website as on 13 Mar 2020


Home loan interest rates and EMI in top 15 banks, in February 2020

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in February 2020, to help you make the right choice

February 11, 2020: The Budget 2020 and the RBI’s February 2020 Monetary Policy Committee (MPC) meeting, were two major domestic events that may impact the home loan interest rate scenario in the near future. The Budget 2020 introduced another tax slab option for tax payers. In the new tax slab, most of the deductions, such as those under sections 80C, 80D, 24, 80EEA, etc., are abolished. The assessee has the option to select either of the two tax slabs. However, non-salaried people cannot switch back to the old tax slab, once they switch to the new tax slab. Moreover, the last date for Section 80EEA has been extended to March 31, 2021.

The announcement in Budget 2020, to allow property transaction value to go up to 10% lower than the circle rate, in comparison to the earlier threshold of 5%, will be beneficial for home buyers, as well as sellers. Those looking to buy a home under the PMAY-CLSS scheme, should keep in mind the deadline of March 31, 2020.

In its recent MPC meet, the Reserve Bank of India (RBI) maintained a status quo on the repo rate and focused on measures to control inflation. It maintained an accommodative stance, meaning that we still have a chance of more rate cuts in the coming months. The central bank also informed that it will not downgrade loans taken for commercial projects, provided there are valid reasons. The RBI also removed the requirement of 4% CRR (cash reserve ratio) for extending fresh retail loans, including housing loans. This will help in softening home loan interest rates and infuse more liquidity in the market.

See also: RBI announces incentive for lending to the housing sector

The global economic scenario remained gloomy with the Coronavirus spreading to several nations. Crude oil prices continued to fall over the last few weeks. The impact of these developments has been visible on Indian imports from China and it may result in an increase in prices of several electronic and electrical goods.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 8%-8.3% per annum and the corresponding EMI for Rs one lakh is Rs 836-Rs 855. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 836 x 30 or Rs 855 x 30 = Rs 25,080 to Rs 25,650 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

8.55-9.4

871-926

Up to 1% of the loan amount, subject to minimum of Rs 10,000.

Bank of Baroda

8.15-9.15

846-909

0.25% to 0.5% of loan amount (Rs 8,500 to Rs 25,000).

Bank of India

8.1-9

843-900

0.25% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

8.05-10.05

840-968

0.50% (Min of Rs 1,500 and maximum of Rs 10,000).

Central Bank

8-8.3

836-855

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Corporation Bank

8.1-8.35

843-858

Up to 0.50% of the loan amount (Maximum of Rs 50,000).

HDFC Ltd

8-8.8

836-887

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

8.25-9.35

852-922

0.50% of the loan amount, plus applicable taxes.

IOB

8.2-8.45

849-865

0.5%, up to Rs 25,000.

PNB

7.9-8.7

830-881

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

7.9-8.55

830-871

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

Syndicate Bank

8-8.7

836-881

0.5% of the loan amount with a minimum of Rs 500.

UCO Bank

8.05-8.15

840-846

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

United Bank

8-8.15

836-846

Waived up to March 31, 2020.

Union Bank

8.2-8.35

849-858

0.50% of the loan amount, subject to maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

Data taken from respective bank’s website, as on February 10, 2020.

 


Home loan interest rates and EMI in top 15 banks, in January 2020

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in January 2020, to help you make the right choice

January 9, 2020: Year 2019 ended with a series of interest rate cuts and with banks moving from the marginal cost of funds-based lending rate (MCLR) to repo-based lending rates. While 2019 also witnessed a liquidity crisis and housing finance companies (HFCs) facing financial distress, the real estate sector is hoping for a positive 2020.

In the last one month, the major event had been the escalation in tensions between the US and Iran, which resulted in a fall in the value of the Indian rupee versus the US dollar and a steep surge in the price of crude oil. If the situation worsens, then, it will restrict the RBI’s option to cut the interest rates in the near future. With Budget 2020 scheduled for February 1, everyone is hoping that the government would announce measures to revive the economy.

Interest rates are expected to remain steady till the announcement of the budget. Any escalation in crude prices in the international market may put pressure on the RBI, to change its stance from ‘accommodative’ to ‘neutral’. If you are planning to buy a home on loan, then, apart from the interest rate, also focus on the charges associated with the loan and the flexibility to switch from one lender to another.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 8%-8.3% per annum and the corresponding EMI for Rs one lakh is Rs 836-Rs 855. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 836 x 30 or Rs 855 x 30 = Rs 25,080 to Rs 25,650 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

8.55-9.4

871-926

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

8.15-9.15

846-909

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

8.1-9

843-900

0.25% of loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000).

Canara Bank

8.05-10.05

840-968

0.50% (Minimum of Rs1,500 and maximum of Rs.10,000).

Central Bank

8-8.3

836-855

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Corporation Bank

8.1-8.35

843-858

Up to 0.50% of the loan amount (Maximum of Rs 50,000).

HDFC Ltd

8-8.95

836-897

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

8.55-9.4

871-926

1%, plus applicable taxes.

IOB

8.2-8.45

849-865

0.5%, up to Rs 25,000.

PNB

7.95-8.45

833-865

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

7.9-8.55

830-871

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

Syndicate Bank

8-8.7

836-881

0.5% of the loan amount with a minimum of Rs 500.

UCO Bank

8.05-8.15

840-846

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

United Bank

8-8.15

836-846

Waived up to March 31, 2020.

Union Bank

8.2-8.35

849-858

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

 Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

Data taken from respective bank’s website, as on January 8, 2020.

 


Home loan interest rates and EMI in top 15 bank in 2019

Home loan interest rates and EMI in top 15 banks, in December 2019

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in December 2019, to help you make the right choice

December 11, 2019: In the recent monetary policy committee (MPC) meeting, held in the first week of December 2019, the Reserve Bank of India (RBI) paused on changing the policy interest rates. Although the markets expected another 25-basis point cut in the policy rates, the RBI came up with an accommodative stance. The RBI’s projection for inflation was revised from 4.7% to 5.1% for the October 2019-March 2020 period and at the same time, the GDP growth projection was cut from 6.1% to 5% for FY 2019-20.

Analysts believe that while the real estate market may not revive immediately, it is on a revival course. Interest rates are still in a downward movement. So, if you are looking to buy a home, then, this is a good time. You can get a good deal from the developer and at the same time you can save interest on home loans. Most of the banks have switched their home loan products to repo-linked interest rates. While applying for a loan, the borrower should focus on home loans with the least spread over the repo rate and the processing charges applicable on it.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 8%-8.3% per annum and the corresponding EMI for Rs one lakh is Rs 836-Rs 855. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 836 x 30 or Rs 855 x 30 = Rs 25,080 to Rs 25,650 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

8.55-9.4

871- 926

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

8.15-9.15

846-909

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

8.1-9

843-900

0.25 % of loan amount (Minimum of Rs 1,000 and maximum of Rs 20,000).

* Processing charge waived up to December 31, 2019.

Canara Bank

8.05-10.05

840-968

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

8-8.3

836-855

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Corporation Bank

8.1-8.35

843-858

Up to 0.50% of the loan amount (Maximum of Rs 50,000).

HDFC Ltd

8.25-9.45

852-929

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

8.55-9.4

871-926

1%, plus applicable taxes.

IOB

8.2-8.45

849-865

0.5%, up to Rs 25,000.

PNB

7.95-8.45

833-865

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

8.2-8.55

849-871

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

Syndicate Bank

8-8.7

836-881

0.5% of the loan amount with a minimum of Rs 500.

UCO Bank

8.05-8.15

840-846

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

United Bank

8-8.15

836-846

0.59% (Minimum of Rs 1,180 and maximum of Rs 11,800).

Union Bank

8.2-8.35

849-858

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

Data taken from respective bank’s website, as on December 9, 2019.

 


Home loan interest rates and EMI in top 15 banks, in November 2019

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in November 2019, to help you make the right choice

November 22, 2019: The last five weeks have been positive for the realty sector. The government has announced the creation of an Alternative Investment Fund (AIF), for the revival of stalled affordable and mid-segment projects. The proposed size of the AIF is Rs 25,000 crores but the government has assured more funds can be infused, if needed. The government has also allowed a reduction in the corporate tax, which could help in improving the liquidity position of builders. All these efforts may ensure that home buyers get their properties on time.

Following the implementation of the external benchmark-linked interest rates, most of the banks have significantly reduced their home loan interest rates and it has come down by up to 0.5% (approximately). Home loan interest rates are still showing a stable to downward trend. As the RBI and government intervene, to try and revive the real estate sector, the chances of an interest rate hike seem to be negligible. There was a little spike in inflation during the festive season but now as the festive season is over, inflation is expected to come down. The RBI may further relax policy rates, to revive economic growth. Prospective home buyers, hence, should not miss an opportunity to buy their home, because properties are available at attractive prices, interest rates are low and there is a big tax benefit, if one purchases their home on loan, before March 31, 2020.

To make the selection of home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 8%-8.3% per annum and the corresponding EMI for Rs one lakh is Rs 836-Rs 855. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 836 x 30 or Rs 855 x 30 = Rs 25,080 to Rs 25,650 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

8.55-9.4

871-926

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

8.1-9.1

843-906

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

8.1-9

843-900

0.25% of the loan amount (Minimum of Rs 1,000 and maximum of Rs 20,000).

*Processing charge waived up to December 31, 2019.

Canara Bank

8.3-10.3

855-985

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

8-8.3

836-855

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Corporation Bank

8.35-8.6

858-874

Up to 0.50% of the loan amount (Maximum of Rs 50,000).

HDFC Ltd

8.25-9.45

852-929

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

8.55-9.4

871-926

1%, plus applicable taxes.

IOB

8.2-8.45

849-865

0.5%, up to Rs 25,000.

PNB

7.95-8.45

833-865

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

8.2-8.55

849-871

0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and maximum of Rs 30,000, plus GST.

Syndicate Bank

8.1-8.95

843-897

Minimum of Rs 500 and maximum of Rs 5,000.

UCO Bank

8.05-8.15

840-846

0.50% of the loan amount (Minimum of Rs1,500 and maximum of Rs 15,000).

United Bank

8.15-8.3

846-855

0.59% (Minimum of Rs 1,180 and maximum of Rs 11,800).

Union Bank

8.2-8.35

849-858

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

Data taken from the respective bank’s websites, as on November 7, 2019.

 


Home loan interest rates and EMI in top 15 banks, in October 2019

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in October 2019, to help you make the right choice

October 11, 2019: As expected, the Reserve Bank of India (RBI) has announced another reduction in the repo rate on October 4, 2019. With effect from October 1, 2019, banks also have to provide home loans linked to the repo rate. Therefore, the reduction of 0.25% in the repo rate, will immediately give relief to home loan borrowers, whose loans are linked to the repo rate. The RBI has also lowered the forecast for GDP growth rate to 6.1% from 6.9% earlier, for FY 2019-20. Consequently, more rate cuts cannot be ruled out in the coming months.

With the onset of the festive season, several banks have come up with special festive offers, including discounts on interest rates and reductions in the processing charges. Developers are also giving offers on properties. With the additional tax deduction benefit already announced by the government, for home loans taken till March 31, 2020, the interest rate on home loans being close to 8% and the attractive festive offers on properties, this could be a great chance for prospective buyers to finalise their home.

Banks have already slashed interest rates by around 0.2% to 0.5% for various tenure and loan amounts. The recent repo rate cut would result in the effective rate to fall as low as 7.95% per annum (approximately).

To make the selection of home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 8.25%-8.55% per annum and the corresponding EMI for Rs one lakh is Rs 852-Rs 871. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 852 x 30 or Rs 871 x 30 = Rs 25,560 to Rs 26,130 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

8.85-9.5

890-932

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

8.1-9.1

843-906

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

8.35-9.35

858-922

0.25% of the loan amount (Minimum of Rs 1,000 and maximum of Rs 20,000).

*Processing charge waived up to December 31, 2019.

Canara Bank

8.3-10.3

855-985

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

8.25-8.55

852-871

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Corporation Bank

8.45-9

865-900

Up to 0.50% of loan amount (Maximum of Rs 50,000).

HDFC Ltd

8.35-9.45

858-929

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

8.65-9.4

877-926

1%, plus applicable taxes.

IOB

8.65-8.9

877-893

0.5%, up to Rs 25,000.

PNB

8.5-8.6

868-874

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

8.2-8.55

849-871

0.35% of the loan amount (Minimum of Rs 2,000 and maximum of Rs 10,000).

Taxes extra.

Syndicate Bank

8.25-8.7

852-881

Minimum of Rs 500 and maximum of Rs 5,000.

UCO Bank

8.3-8.4

855-862

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

United Bank

8.15-8.3

846-855

0.59% (Minimum of Rs 1,180 and maximum of Rs 11,800).

Union Bank

8.45-8.6

865-874

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable taxes).

 Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

Data taken from the respective bank’s websites, as on October 7, 2019.

 


Home loan interest rates and EMI in top 15 banks, in September 2019

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the changed interest rates, EMI and processing fees offered by the major banks in September 2019, in light of all the recent rate cuts

September 12, 2019: The last few weeks have been exciting for the existing and new home buyers. The RBI made it mandatory for the banks to link their loan for retail borrowers to external interest benchmark. The new setup will be effective from October 1, 2019; however, many banks have already started coming up with home loan products which are linked to the Repo Rate. This move will result in the immediate transmission of rate change to the home loan borrowers. Earlier, the finance minster had requested all the banks to ensure the quick transmission of rate cut benefits to the borrowers and it resulted in significant interest rate cuts by most of the banks. The home loan interest rate has come down by up to .3% across various banks, in the last one month.

With the festive season coming up, there are expectations that banks will come up with offers like zero processing charge on home loans and other lucrative offers to invite borrowers. With the realty sector still facing a slow-down and interest rates below 8.5% level, you may not want to miss this opportunity if you are looking to buy your first home.

With the US-China trade war intensifying and China continuously cutting the interest rates, we expect that there could be more rate cuts in the next few months. However, you need not wait for more rate cuts because soon, you will get home loan repo rate linked interest rates!

 To make the selection of home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks at one place in the undermentioned table. The EMI has been calculated based on Rs 1 Lac loan for 20 years tenure. You can easily calculate the EMI for the desired amount by multiplying loan amount (In Lac) with the EMI range corresponding to selected bank mentioned in the table. For example, Interest rate mentioned for ‘Central Bank’ is 8.3% Pa and the corresponding EMI for Rs 1 Lac is Rs 855. Now, if you want to calculate EMI for Rs 30 Lac, then simply multiply the EMI with 30, i.e. Rs 855 x 30 = Rs 25650/Month (approx.) would be the EMI for 20 years tenure.

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s NameFloating Interest Rate (% Pa)EMI per Lac (In Rs)Processing Fee
Axis Bank8.9 – 9.15893 – 909Up to 1% of the Loan amount subject to minimum of Rs. 10,000
Bank of Baroda8.4 – 9.4862 – 926.25% to .5% of loan Amount. Rs 8500 to Rs 25000.
Bank of India8.45 – 8.75865 – 8840.25 % of loan amount
Min. Rs. 1,000/- Max. Rs. 20,000/-
* Processing charge waived up to 31 Dec 19
Canara Bank8.4 – 8.65862 – 8770.50% (Min Rs.1500/- and Max. Rs.10,000/-)
Central Bank8.38550.50% of the Loan Amount subject to maximum Rs.20,000/-
Corporation Bank8.6 – 9.05874 – 913Up to 0.50% of loan amount (Max Rs.50,000/‐)
HDFC Ltd8.4 – 9.5862 – 932For Salaried Individual and Self-Employed Professionals:
Up to 0.50% of the loan amount or Rs. 3,000 whichever is higher;
Self-Employed Non-Professionals:
Up to 1.50% of the loan amount or Rs. 4,500 whichever is higher
(Taxes Extra)
ICICI Bank8.7 – 9.3881 – 919.5% (Plus applicable taxes)
IOB8.65 – 8.9877 – 893.5%, up to Rs 25000
PNB8.5 – 8.6868 – 8740.35% of the loan amount
Minimum- Rs. 2,500/
Maximum- Rs. 15,000/;
SBI8.35 – 9.05858 – 9030.35% of the loan amount, Minimum of Rs. 2,000/- and Maximum of Rs. 10,000/-
(taxes extra)
Syndicate Bank8.35858Min Rs 500 to Max Rs 5000
UCO Bank8.5 – 8.75867 – 8840.50% of the loan amount (Min Rs.1500/- & Max Rs. 15000/-)
United Bank8.45865Processing charge: 0.59%, Minimum Rs.1180/-; Maximum Rs.11800/-
Union Bank8.45 – 8.6865 – 8740.50% of the loan amount subject to maximum of Rs. 15,000 (plus applicable tax).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rates system. Rate may be subject to a revision after a specified tenure depending on the bank’s t&c. The EMI range is indicative and calculated on the basis of the interest rate range as provided in the table. In an actual situation, it may include other charges and fees as per the bank’s t&c. Actual applicable interest rate may vary based on the credit profile of the loan applicant. Table data is only for the illustration purpose.

Data were taken from respective banks’ website as on September 9, 2019.

 


Home loan interest rates and EMI in top 15 banks, in August 2019

August 9, 2019: The last few weeks had been eventful for the real estate sector. The Reserve Bank of India (RBI) has cut the repo rate by 35 basis points, which is the fourth time in a row in this calendar year, while also maintaining an ‘accommodative’ stance. The market was expecting a rate cut of 25 basis points and a higher cut of 35 basis points, has been welcomed by many in the realty sector. Earlier, the NHB directed HFCs to desist from extending loans under the subvention scheme. The move by the NHB, to withdraw the subvention scheme, has worsened the liquidity problem in the realty sector, which is already struggling with weak demand and high cost of funding. Indication from the international market is also not very promising, as the trade war between the US and China has intensified.

On the positive side, the monsoon has revived across India and the rain deficiency has shrunk considerably in the last few weeks, thereby, boosting the chances of economic revival. The RBI has also reiterated that this is a cyclical slowdown and not a deep structural slowdown.

Banks have reduced their interest rates significantly, in the last one month. With the 35 basis point repo rate cut, several banks could further reduce their home loan rates over the next few days. If you are looking to buy a home on loan, then, this is a good time, because property and interest rates remain low and you may get the benefit of several incentives being offered by the government.

See also: RBI slashes interest rate by 0.35%, making it the fourth cut in a row

To make the selection of home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 8.5% per annum and the corresponding EMI for Rs one lakh is Rs 868. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 868 x 30 = Rs 26,040 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

8.9-9.15

893- 909

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

8.45-9.45

865-929

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

8.65-8.7

877-881

0.25% of the loan amount (Minimum of Rs 1,000 and maximum of Rs 20,000).

Canara Bank

8.5-8.75

868-884

0.50% (Minimum of Rs1,500 and maximum of Rs 10,000).

Central Bank

8.5

868

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Corporation Bank

8.6-9.2

874-913

Up to 0.50% of the loan amount (Maximum of Rs 50,000).

HDFC Ltd

8.55-9.55

871-935

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

8.7-9.3

881-919

0.5%, plus applicable taxes.

IOB

8.65-8.9

877-893

0.5%, up to Rs 25,000.

PNB

8.5-8.6

868-874

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

8.35-9.05

858-903

0.35% of the loan amount (Minimum of Rs 2,000 and maximum of Rs 10,000, plus taxes).

Syndicate Bank

8.6

874

Minimum of Rs 500 and maximum of Rs 5,000.

UCO Bank

8.65-8.9

877-893

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

United Bank

8.55

871

0.59% (Minimum of Rs 1,180 and maximum of Rs 11,800).

Union Bank

8.6-8.75

874-884

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable taxes).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

Data taken from the respective bank’s websites, as on August 8, 2019.

 


Home loan interest rates and EMI in top 15 banks, in July 2019

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in July 2019, to help you make the right choice

July 9, 2019: On July 5, 2019, the government presented the Union Budget 2019. The government announced measures to address the liquidity problem and focused on infrastructure and greater support to affordable housing. A new home loan borrower, with loan amount of up to Rs 45 lakhs, can get an additional tax deduction benefit of up to Rs 1.5 lakhs, over and above the Rs 2 lakhs deduction available under Section 24, on interest payment against the home loan. The government has also taken steps, to ease the funding problem of housing finance companies (HFCs). The government also reiterated its commitment towards the ‘Housing for All by 2022’ mission. In the coming months, the government has proposed to come up with a Model Tenancy Law. These moves are likely to boost investment in the real estate sector.

See also: Additional benefit of Rs 1.5 lakhs on home loans: Can home buyers truly get the full benefit of Rs 3.5 lakhs?

Several banks have reduced the interest rates and with the government infusing more liquidity into the PSU banks, interest rates may further reduce in the coming months. If you are looking to buy your own home, then, do it within current financial year, to get additional tax deduction benefit (for houses valued up to Rs 45 lakhs). The last date to avail of the extra tax deduction benefit, is March 21, 2020.

To make the selection of home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 8.5% per annum and the corresponding EMI for Rs one lakh is Rs 868. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 868 x 30 = Rs 26,040 per month (approximately), which would be the EMI for 20 years tenure.

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

8.9-9.15

893-909

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

8.6-9.6

874-939

0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000).

Bank of India

8.8-8.85

887-890

0.25% of the loan amount (Minimum of Rs 1,000 and maximum of Rs 20,000).

Canara Bank

8.7-8.95

881-897

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

8.5

868

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Corporation Bank

8.6-9.2

874-913

Up to 0.50% of the loan amount (Maximum of Rs 50,000).

HDFC Ltd

8.6-9.6

874-939

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

8.7-9.3

881-919

0.5%, plus applicable taxes.

IOB

8.65-8.9

877-893

0.5%, up to Rs 25,000.

PNB

8.6-8.7

874-881

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

8.5-9.2

868-913

0.35% of the loan amount plus service tax (Minimum of Rs 2,000 plus service tax and maximum of Rs 10,000 plus service tax).

Syndicate Bank

8.65

877

Minimum of Rs 500 and maximum of Rs 5,000.

UCO Bank

8.65-8.9

877-893

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

United Bank

8.6

874

0.59% (Minimum of Rs 1,180 and maximum of Rs 11,800).

Union Bank

8.65-8.8

877-887

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable taxes).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

Data taken from the respective bank’s websites, as on July 8, 2019.

 


Home loan interest rates and EMI in top 15 banks, in June 2019

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in June 2019, to help you make the right choice

June 8, 2019: On June 6, 2019, the RBI presented its bi-monthly monetary policy review, in which it announced a repo rate cut of 25 basis points. This was the third time in a row that the central bank cut policy rates. However, it is a matter of concern for many home buyers that despite the series of policy rate cuts, banks have not yet transmitted its entire benefit as the interest rates on home loans have not fallen to the same extent. Banks are taking up to four months to reduce the rates, after the announcement of the repo rate cut. In the last one month, some of the banks have reduced home loan interest in the range of 0.05% to 0.1%.

The RBI also reduced the GDP forecast for 2019-20. GDP growth is already at a low of 5.8% in the March quarter. At the same time, the monsoon is expected to be below average this year, which can further impact the real estate market negatively. One big reason for home buyers to cheer, is the RBI’s change in stance from neutral to accommodative, indicating a high chance of another rate cut. If you are looking to buy a home, then, choose a bank which is quickly transmitting the benefit of the repo rate cut to its customers.

To make the selection of home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 8.55% per annum and the corresponding EMI for Rs one lakh is Rs 871. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 871 x 30 = Rs 26,100 per month (approximately), which would be the EMI for 20 years tenure.

See also: RBI cuts interest rates for the third time this year, to boost growth

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

8.9-9.15

893-909

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

8.7-9.7

881-945

100% waiver of processing charges, subject to recovery of out of pocket expenses of Rs 7,500 plus GST.

Bank of India

8.8-9.7

887-945

0.25 % of the loan amount (Minimum of Rs 1,000 and maximum of Rs 20,000).

*Processing charges waived till June 30, 2019.

Canara Bank

8.7-8.95

881-897

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Central Bank

8.55

871

Corporation Bank

8.6-9.25

874-916

Up to 0.50% of the loan amount (Maximum of Rs 50,000).

HDFC Ltd

8.6-9.6

874-939

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

8.8-9.2

887-913

0.5%, plus applicable taxes.

IOB

8.65-8.9

877-893

0.5%, up to Rs 25,000.

PNB

8.65-8.75

877-884

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

8.55-9.25

871-916

0.35% of the loan amount plus service tax (Minimum of Rs 2,000 plus service tax and maximum of Rs 10,000 plus service tax).

Syndicate Bank

8.65

877

Minimum of Rs 500 to maximum of Rs 5,000.

UCO Bank

8.65-8.9

877-893

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

United Bank

8.6

874

0.59% (Minimum of Rs 1,180 and maximum of Rs 11,800).

Union Bank

8.7-8.85

881-890

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable taxes).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

Data taken from the respective bank’s websites, as on June 7, 2019.


Home loan interest rates and EMI in top 15 banks, in May 2019

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in May 2019, to help you make the right choice

May 10, 2019: Several banks have not yet passed the benefit of the repo rate cut by the Reserve Bank of India (RBI) in the last month. The few banks that have done so, have reduced their home loan interest rates by 0.05% to 0.1%, although the repo rate was cut by 0.25%. However, with Akshaya Tritiya falling in the month of May, some banks have extended ‘zero processing fee’ offers, to attract the home buyers. As many housing finance companies (HFCs) are facing a liquidity crisis, with banks reluctant to allow easy money to them after the default by IL&FS, it may be better for home loan seekers to opt for private or PSU banks over the NBFCs, for a better deal.

The monsoon prediction for this financial year is not encouraging, as El Nino may cause rainfall deficit in many areas. A weak monsoon usually results in higher inflation and an increase in interest rates. However, for now, the interest rate trend over the next few weeks will largely depend on the results of the general election and the trade deal between the US and China. The RBI is expected to reveal its next move after the election result is declared and till then, no major change in home loan interest rates is likely.

To make the selection of home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 8.55% per annum and the corresponding EMI for Rs one lakh is Rs 871. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 871 x 30 = Rs 26,100 per month (approximately), which would be the EMI for 20 years tenure.

See also: Akshaya Tritiya: Look beyond festive offers, while buying a home

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

8.9-9.15

893-909

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

8.7-9.7

881-945

100% waiver of processing charges, subject to recovery of out of pocket expenses of Rs 7,500 plus GST.

Bank of India

8.75-9.65

884-942

0.25 % of the loan amount (Minimum of Rs 1,000 and Maximum of Rs 20,000).

*Processing charges waived till June 30, 2019.

Canara Bank

8.75-8.95

884-897

0.50% (Minimum of Rs 1,500 and Maximum of Rs 10,000).

Central Bank

8.55

871

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Corporation Bank

8.6-9.25

874-916

Up to 0.50% of the loan amount (Maximum of Rs 50,000).

HDFC Ltd

8.7-9.65

881-942

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

9.05-9.25

903-916

0.5%, plus applicable taxes.

IOB

8.65-8.9

877-893

0.5%, up to Rs 25,000.

PNB

8.65-8.75

877-884

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

8.6-9.3

874-919

0.35% of the loan amount plus taxes (Minimum of Rs 2,000 plus taxes and maximum of Rs 10,000 plus taxes).

*Processing fee waived till May 31, 2019.

Syndicate Bank

8.6

874

Minimum of Rs 500 to maximum of Rs 5,000.

UCO Bank

8.7-8.95

881-897

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

United Bank

8.6

874

0.59% (Minimum of Rs 1,180 and maximum of Rs 11,800).

Union Bank

8.7-8.85

881-890

0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable taxes).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

Data taken from the respective bank’s websites, as on May 8, 2019.


Home loan interest rates and EMI in top 15 banks, in April 2019

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in April 2019, to help you make the right choice

April 10, 2019: As anticipated, the Reserve Bank of India (RBI) cut its benchmark repo rate by 25 basis points, in its first monetary policy meet of FY 2019-20. Now, the repo rate stands at 6%. It kept the policy stance at neutral, signalling that interest rates would remain in the stable to negative zone. Therefore, more rate cuts may follow in the coming months. The RBI also lowered the GDP projection for FY 2019-20 to 7.2% from 7.4% earlier. In another significant development, the RBI delayed the implementation of the external benchmark system. With banks not passing on the benefit of reductions in the key policy rates to borrowers, a delay in the adoption of an external benchmark, is not in favour of loan borrowers.

However, with the upcoming elections and builders sitting on a huge pile of inventory, this may be the best period to buy a home. With attractive interest rates, which may fall further in the next few months by a few basis points, you may not get a similar price deal from the developers, which they are offering in the prevalent market scenario.

To make the selection of home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 8.6% per annum and the corresponding EMI for Rs one lakh is Rs 874. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 874 x 30 = Rs 26,220 per month (approximately), which would be the EMI for 20 years tenure.

See also: Following smaller peers, SBI cuts loan rates by a nominal 5 bps

 

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s name

Floating interest rate (Per cent, per annum)

EMI per Rs one lakh (in Rs)

Processing fee

Axis Bank

8.9-9.15

893-909

Up to 1% of the loan amount, subject to a minimum of Rs 10,000.

Bank of Baroda

8.65-9.65

877-942

100% waiver of processing charges, subject to recovery of out of pocket expenses of Rs 7,500 plus GST.

Bank of India

8.8-8.85

887-890

0.25% of the loan amount (Minimum of Rs 1,000 and maximum of Rs 20,000).

Canara Bank

8.7-8.9

881-893

0.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).

Central Bank

8.6

874

0.50% of the loan amount, subject to a maximum of Rs 20,000.

Corporation Bank

8.6-9.25

874-916

Up to 0.50% of the loan amount (Maximum of Rs 50,000).

HDFC Ltd

8.8-9.8

887-952

For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank

9.05-9.25

903-916

0.5%, plus applicable taxes.

IOB

8.7-8.95

881-897

0.5%, up to Rs 25,000.

PNB

8.65-8.75

877-884

0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000).

SBI

8.7-9.35

881-922

Not available.

Syndicate Bank

8.65

877

Minimum of Rs 500 to a maximum of Rs 5,000.

UCO Bank

8.7-8.95

881-897

0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).

United Bank

8.65

877

0.59% (Minimum of Rs 1,180 and maximum of Rs 11,800).

Union Bank

8.7-8.85

881-890

0.50% of the loan amount subject to a maximum of Rs 15,000 (plus applicable taxes).

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

Data taken from the respective bank’s websites, as on April 5, 2019.


Home loan interest rates and EMI in top 15 banks, in March 2019

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in March 2019, to help you make the right choice

March 11, 2019: After the Reserve Bank of India (RBI) reduced its repo rate, in February 2019, the interest rates on home loans have now started softening. Banks like PNB, HDFC, Union Bank, etc., have slashed their interest rate by up to 0.1%. Moreover, with the GST rate on under-construction housing being cut from 12% (with the input tax credit) to 5% (without an input tax credit), sentiments in the real estate market have turned positive and there could be a jump in demand. However, the upcoming general elections and expected trade deal between the US and China, are some macro events that may impact the real estate market in the coming weeks.

Banks have already put a pause on the trend of hike in the interest rate on FDs and this indicates that the interest rates on home loans may also remain subdued, or witness little downward correction.

If you are looking to buy a home, this could be a very good time, with interest rates below the 9% level, along with the reduction in GST rate to 5% and builders ready to offer under-construction properties at attractive rates. For people looking to apply for a home loan, it is important to select the right product.

To make the selection of home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying loan amount (in Rs lakhs) with the EMI range corresponding to selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 8.65 per cent per annum and the corresponding EMI for Rs one lakh is Rs 877. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 877 x 30 = Rs 26,310 per month (approximately), which would be the EMI for 20 years tenure.

See also: Why the recent reduction in repo rate by the RBI will not result in a reduction in home loan rates

Interest rate and processing charge on home loan by banks (with indicative EMI)

Lender’s nameFloating interest rate (Per cent, per annum)EMI per Rs one lakh (in Rs)Processing fee
Axis Bank8.9-9.15893-909Up to 1% of the loan amount, subject to a minimum of Rs 10,000.
Bank of Baroda8.65-9.65877-942100% waiver of processing charges, subject to recovery of out of pocket expenses of Rs7,500 plus GST.
Bank of India8.7-9.6881-9390.25% of the loan amount (Minimum of Rs 1,000 and maximum of Rs 20,000) **Processing charges waived up to March 31, 2019.
Canara Bank8.7-8.9881-8930.50% (Minimum of Rs 1,500 and maximum of Rs 10,000).
Central Bank8.658770.50% of the loan amount, subject to a maximum of Rs 20,000.
Corporation Bank8.65-9.3877-919Up to 0.50% of the loan amount (Maximum of Rs 50,000).
HDFC Ltd8.8-9.2887-913For salaried individual and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

 

 

 

 

Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher.

(Taxes extra)

ICICI Bank9.1-9.3906-9190.5%, plus applicable taxes.
IOB8.7-8.95881-8970.5%, up to Rs 25,000.
PNB8.65-8.75877-8840.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000)

 

 

 

 

*Fully waived till March 31, 2019.

SBI8.7-9.35881-922Not available
Syndicate Bank8.75884Minimum of Rs 500 to maximum of Rs 5,000.
UCO Bank8.7-8.95881-8970.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000).
United Bank8.658770.59% (Minimum of Rs 1,180 and maximum of Rs 11,800).
Union Bank8.7-8.85881-8900.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable taxes). Note: 50% concession in processing charges based on CIBIL score, March 31, 2019.

Note:

The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.

Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

Data taken from the respective bank’s websites, as on March 8, 2019.

 

FAQ

Which bank is offering lowest interest rate on home loan?

As of May 11, 2021, Kotak Mahindra Bank has the lowest floating interest rate on home loans.

What is current interest rate on home loans?

The interest rate varies from bank to bank. At present, the floating interest rate ranges from 6.65% to 9.45% per annum.

What is the difference between fixed and floating interest rate?

Under the fixed rate, the interest rate that you pay remains the same. In the floating rate, the interest you have to pay will vary according to the prevailing MCLR/RLLR.

Which interest rate is better?

Usually, fixed interest rate is higher than floating rates. However, fixed interest rate home loans have fixed EMIs while EMIs change in floating interest rates. One can save more money through floating rates as compared to fixed-rate home loans.

Can you change your home loan from floating to fixed?

There are two ways of changing your home loan interest rate from floating to fixed. You can renegotiate the terms with your existing lender or you can transfer your loan to a new lender.

 

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