With the financial year entering the last quarter and the start of the new calendar year, the focus is back on the fiscal deficit, liquidity issue with financial institutions and NPA woes. In a press conference on January 7, 2019, the RBI governor said that it has already addressed the liquidity issue and if required, it will further take necessary steps. The RBI is also expected to meeting with the NBFCs, to discuss the current liquidity situation.
In the last one month, home loan interest rates have been on a moderately upward trend, with banks like SBI, Axis Bank, Corporation Bank, etc., hiking the rate by around 0.05 per cent to 0.1 per cent for various tenures. Many banks have come up with the offer of ‘zero processing fees’ on home loans, for a limited period, to attract home buyers. The Indian rupee has also risen against the US dollar in the last one month, with a softening in international crude price, while inflation has also remained subdued. Therefore, home loan interest rates are expected to remain range-bound, in the coming months.
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 8.6 per cent 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) 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 one per cent of the loan amount, subject to minimum of Rs 10,000.|
|Bank of Baroda||8.65-9.65||877-942||100 per cent waiver of processing charges, subject to recovery of out of pocket expenses of Rs 7,500 plus GST.|
|Bank of India||8.7-9.6||881-939||0.25 per cent of the loan amount (Minimum of Rs 1,000 and maximum of Rs 20,000). **Processing charge waived up to March 31, 2019.|
|Canara Bank||8.75-8.95||884-897||0.50 per cent (Minimum of Rs 1,500 and maximum of Rs 10,000).|
|Central Bank||8.6||874||0.50 per cent of the loan amount, subject to a maximum of Rs 20,000.|
|Corporation Bank||8.6-9.3||874-919||Up to 0.50 per cent of the loan amount (Maximum of Rs 50,000).|
|HDFC Ltd||8.9-9.8||893-952||For salaried individuals and self-employed professionals: Up to 0.50 per cent of the loan amount, or Rs 3,000, whichever is higher.|
Self-employed non-professionals: Up to 1.50 per cent of the loan amount, or Rs 4,500, whichever is higher.
|ICICI Bank||9.1-9.3||906-919||0.5 per cent, plus applicable taxes.|
|IOB||8.7-8.95||881-897||0.5 per cent, up to Rs 25,000.|
|PNB||8.7-8.8||881-887||0.35 per cent of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000) *Fully waived till January 31, 2019.|
|Syndicate Bank||8.75||884||Minimum of Rs 500 to maximum of Rs 5,000.|
|UCO Bank||8.7-8.95||881-897||0.50 per cent of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000) *Processing charge waived up to January 31, 2019.|
|United Bank||8.65||877||0.59 per cent (Minimum of Rs 1,180 and maximum of Rs 11,800).|
|Union Bank||8.8-8.95||887-897||0.50 per cent of the loan amount, subject to a maximum of Rs 15,000 (plus applicable taxes).|
Note: 50 per cent concession in processing charges based on CIBIL score, till March 31, 2019.
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 January 7, 2019.