Home Finance Home Loan Easy Home Loan

Easy Home Loan

137
0

House is one of the key signs of success among the fast-growing Indian middle class. As the income of the average Indian family increases, there has been a continuous increase in the desire to own a house and this has lead the price of property to reach unmatched highs in recent years. This is true for not just the big cities but also for smaller cities across India. This unbridled price rise has made it near impossible for the common man to purchase their home through just savings. This is among the major reasons for the home loan business to have witnessed unmatched growth in recent years.

Loan Features:

  • Loan Term
  • Loan Amount
  • Interest Rate & Charges
  • Modes of Repayment
  • Tax Benefits

The maximum term of your home loan can be up to 30 years and it cannot extend beyond your retirement age or 60* years (whichever is earlier).

*60 years for salaried individuals and 70 years for self-employed individuals.

You can get a home loan up to 90% of the cost of a chosen selected property for the loan requirement up to Rs. 30 Lakh*, depending upon the loan amount required.

Your home loan amount depends on your annual income and your ability to repay the loan. You can increase your home loan amount by adding an earning co-applicant.

Your home loan interest rate starts from 8.75%* p.a. (*T&C Apply)

You can pay your home loan EMIs through:

  • Electronic Clearing Service (ECS)/ National Automated Clearing House(NACH)- based on standing instructions, given to your bank
  • Post Dated Cheques (PDCs) - Drawn on your salary/savings account. (Only for locations where ECS/NACH facility is not available.)

Your home loan makes you eligible for certain tax benefits* as per the prevailing laws. This means that you can save more money by claiming deductions in your income tax, against principal and interest amount repaid.

*As per Income Tax Act 1961 rules, the current applicable exemption under section 24(b) is Rs. 2,00,000/- for the interest amount paid in the financial year and up to Rs. 1,50,000/- (under section 80 C) for the principal amount repaid in the same year.

The home loan interest rates are currently based on the MCLR (marginal cost of lending rate) plus a spread on the MCLR depending upon the lender’s risk perception of the applicant. Almost every bank offers a competitive interest rate on housing loan to attract the prospective customers. In the housing loan market, lenders give away a host of home loan offers and deals to gain more customers and profit. However, as a borrower it is best to compare home loan rates of different banks and then finalize the one which suits your needs the best. Govt. also initiate with Pradhan Mantri Awas Yojana for mission 2022 home for all.

Loan providers offer either fixed or floating interest rate on housing loan. Fixed interest rate implies that the home loan interest rate will be fixed and you will need to pay fixed equal installments over the repayment tenure of the loan. In this case, home loan interest rates do not change with the market fluctuations. The main disadvantage with fixed interest rates is that they are usually 1-2.5 % higher as compared to the floating rate for housing loans. Furthermore, if any time during the loan tenure the home loan interest rates decrease, the fixed interest rate remains unchanged and the borrower continues to pay the same amount every time.

Floating interest rate applied on housing loans changes with the market conditions. The interest rates on home loans on floating interest are calculated according to a base rate plus a floating rate. So, whenever the base rate changes the floating interest rate gets changed with it. The major benefit with floating interest rate loans is that they are cheaper home loans as compared to the house loans with fixed interest rates. The only disadvantage with a floating interest rate house loan is that the monthly instalments are never fixed and are subject to change with time.

Top Banks Home Loan Interest Rates and Processing Fee in 2018

Bank NameProfession TypeHome Loan Interest RatesHome Loan Processing FeesMCLR Rates (One year)
SBISalariedFor Women (upto 30 Lakhs)8.45%Upto 1%8.25%
For Others (upto 30 Lakhs)8.50% (floating)
For Women (From 30.01 Lakhs to 75 Lakhs)8.50%
For Others (From 30.01 Lakhs to 75 Lakhs)8.55%
For Women (Above 75 Lakhs)8.60%
For Others (Above 75 Lakhs)8.65%
Self EmployedFor Women (upto 30 Lakhs)8.50%Upto 1%
For Others (upto 30 Lakhs)8.55%
For Women (From 30.01 Lakhs to 75 Lakhs)8.65%
For Others (From 30.01 Lakhs to 75 Lakhs)8.70% (floating)
For Women (Above 75 Lakhs)8.75%
For Others (Above 75 Lakhs)8.80%
HDFCSalariedFor Women (upto 30 Lakhs)8.40%Rs. 100008.40%
For Others (upto 30 Lakhs)8.45%
For Women (From 30.01 Lakhs to 75 Lakhs)8.55%
For Others (From 30.01 Lakhs to 75 Lakhs)8.60%
For Women (Above 75 Lakhs)8.65%
For Others (Above 75 Lakhs)8.70%
Self EmployedFor Women (upto 30 Lakhs)8.55%0.50% of the loan amount
For Others (upto 30 Lakhs)8.60%
For Women (From 30.01 Lakhs to 75 Lakhs)8.70%
For Others (From 30.01 Lakhs to 75 Lakhs)8.75%
For Women (Above 75 Lakhs)8.80%
For Others (Above 75 Lakhs)8.85%
IndiaBullsSalariedFor Women (upto 30 Lakhs)8.40%Upto 28 Lacs : 7500 + ST ; 28 lacs to 50 lacs - Rs. 10000, 50 Lacs and above 0.5%N/A
For Women (From 30 Lakhs to 75 Lakhs)8.55%
For Women (From 75 Lakhs to 1.5 crore)8.65%
For Women (From 1.5 crore to 3 crore)8.70%
For Women (From 3 crore to 5 crore)8.80%
For Women (Above 5 crore)9.70%
Self EmployedFor Women (upto 30 Lakhs)8.40%
For Women (From 30 Lakhs to 75 Lakhs)8.55%
For Women (From 75 Lakhs to 1.5 crore)8.65%
For Women (From 1.5 crore to 3 crore)8.70%
For Women (From 3 crore to 5 crore)8.80%
For Women (Above 5 crore)9.70%
LIC HFLSalariedFor Women (upto 30 Lakhs)8.35%Rs. 10000N/A
For Men (upto 30 Lakhs)8.40%
From 30 Lakhs to 2 crore8.50%
Self EmployedFor Women (upto 30 Lakhs)8.35%0.75% Of the Loan Amount
For Men (upto 30 Lakhs)8.40%
From 30 Lakhs to 2 crore8.50%
DHFL 8.35% onwardsRs. 5000 onwardsN/A
Axis Bank 8.35% onwardsUp to 1% of the Loan amount subject to minimum of Rs.10,0008.60%
Yes Bank 9.35% to 10.50%0.5% of the loan amount or Rs 10000 whichever is higher9.45%
ICICI Bank 8.45% onwards0.5% of loan amount plus service tax8.40%

*Figures mentioned in the above table are subject to change without prior information.

When it comes to choosing between fixed and floating interest rates on home loans, a majority of home loan borrowers choose floating interest rates. However, the choice is up to the borrower, whatever suits his needs is the best option. Before zeroing in on your choice, it is recommended to the compare home loan from different lenders.

  • Calculate your Loan EMI
  • Touch with us

**Note $ is only used symbol consider as Rs.


        

LEAVE A REPLY

Please enter your comment!
Please enter your name here