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

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 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, 2020, Union Bank has the lowest floating interest rate on home loan.

What is current interest rate on home loans?

The interest rate varies from bank to bank. At present, the floating interest rate ranges from 7.1 to 9.35 per cent 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.

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 as per floating interest rates. One can save more money through floating rates as compared to fixed-rate home loan.

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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