Home Loan Interest Rates May 2017

SBI slashes home loan interest rates and yet again intensifies competition among the lenders by reducing the home loan interest rates by 25 basis points.

ICICI and HDFC, the prime private lenders followed SBI for a further reduction of home loan interest rates basis points.

Indiabulls, one of the largest financial institute, takes the same path as the pioneers SBI, ICICI and HDFC.

For loan upto Rs. 30 lakh, pay 8.35% home loan interest rate, if you are a women borrower and 8.4% for others. For loan from Rs. 30 lakh to Rs. 75 lakh, pay 8.5% for women and 8.55% for others; for above Rs. 75 lakhs, pay 8.55%.

The ICICI Bank allows the weaker section to avail dual benefit of low interest rate and credit linked subsidy under the Pradhan Mantri Awas Yojana

Get more discount on home loans from your favorite banks. Go via Loanyantra to the most recommended banks in India to avail the lowest  home loan interest rates ever.

Whether it is a new home loan or a balance transfer, we plan it for you to save the maximum on your home loan. Know more tips and suggestions for free, on home loan and its management.

Follow this link and check your eligibility and get the lowest home loan interest rates

http://loanyantra.com/Home-Loan-Calculator.aspx#Home-Loan-Eligibilty-Calculator

Click the link below to manage your loan

http://loanyantra.com/ManageMyLoan.aspx

If you are paying more than 8.5% home loan interest rate on your home loan, look for balance transfer

http://loanyantra.com/Balance-Transfer-Calculator.aspx

It is time to enjoy the benefits of low home loan interest rates. Never wait for your dream home. Think positive, choose an affordable house and avail all the benefits in home loan.

Interest Rate Subsidy on Housing Loans

Interest Rate Subsidy on Home Loans – Know More

The year 2016 ended with the honorable Prime Minister Narendra Modi’s much awaited speech. The speech gave hopes to the poor, women and senior citizens. The housing policy schemes by the P.M., made easy for the poor to have a home of their own. The new policy of home loan interest rates subsidy to the needed, raised hopes in availing a home with the help of home loan. That too for really lower interest rates.

So, here are more details about Pradhan Mantri Awas Yojana and Credit Linked Subsidy Scheme.

Pradhan Mantri Awas Yojana (PMAY)  

  1. This scheme is valid in urban India (towns, cities, metros) for urban poor of income below 6,00,000/ year and age between 21 years to 58 years.
  2. Women play vital role in this scheme. A family comprising of husband, wife and unmarried children. Beneficiary should not own a pucca house either in their name or in the name of any member of their family in any part of India to receive central assistance under the Mission Meeting income criteria defined under the scheme
  3. Credit Linked Subsidy is available for housing loans availed for new construction and addition of rooms, kitchen, toilet etc., to existing dwelling as incremental housing.  The carpet area* of house should be constructed or enhanced under this scheme should be upto 30 sq.meters for EWS(Economically Weaker Section) category and upto 60 square meters for LIG(Lower Income Group) category.
  4. For identification as EWS/LIG beneficiary under the scheme, an individual loan applicant should submit self-attested certificate/affidavit as proof of income.

interest-rate-subsidy-_loanyantra-com

Credit Linked Subsidy Scheme(CLSS).

Any citizen of India can enroll for CLSS under the following conditions. The beneficiary, at his/her discretion, can build a house of larger area but interest subvention would be limited to first Rs. 6 lakh only.

This new policy of Credit Linked Subsidy Scheme (CLSS) is applicable for the Lower Income Group (LIG) of household income less than Rs.3,00,000 and the Economically Weaker Section (EWS) of household income less than Rs.6,00,000, not only for limited square feet.

So, now let us go into details of how the CLSS scheme works.

Any eligible applicant who choose a carpet area within  60 sq.m(645 sqft) of a flat/house then the applicant gets an home loan interest rate upto INR 12,00,000/- availed from the bank.

And if any eligible applicant is applying for 2 bhk of 975 sqft super built up area which has 644sq.ft of carpet area* (the real area you can use, source – 99acers.com), then the flat costs Rs. 40,00,000. Now, the applicant can enjoy interest rate subsidy on housing loan for Rs. 12,00,000.

The possible ROI as per Honorable PM speech is 5.5%. The non subsidized interest rate follows the existing market interest rate, which is currently 8.5%.

Example for CLSS Indetail. 

If any qualified applicant having gross salary of Rs.50,000/- per month and age is 30 years, the person is eligible for 37.88 lakh for maximum tenure of 28 years tenure and 30 lakh for 15 years tenure(know more and calculate your eligibility  http://loanyantra.com/Home-Loan-Calculator.aspx ).

So, the applicant, out of Rs. 40,00,000 has to pay down payment of 20% of the market value, which is Rs. 8,00,000. For the rest of Rs. 32,00,000/-, the applicant can go for a home loan. Under Pradhan Mantri Awas Yojana (PMAY)  Credit Linked subsidy scheme(CLSS) Rs. 12,00,000 will be subsidy interest and other Rs. 20,00,000 (Rs. 32 lakhs – Rs. 12 lakhs ) go as a non subsidy which has existing market rate of interest.

Carpet Area*: Area enclosed within the walls, the actual area to lay the carpet. This area does not include the thickness of the inner walls.

NOTE : Under the Mission, beneficiaries can take advantage under one component only.

Housing and Urban Development Corporation(HUDCO)  and National Housing Bank(NHB) have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions and for monitoring the progress of this component. Ministry may notify other institutions as CNA in future.

How to Enroll and Apply for Credit Linked Subsidized Scheme (CLSS).

Banks have a separate application for this kind of loan. Follow the official link to  download the application. http://www.tn.gov.in/exwel/forms/app5.pdf

If an applicant can qualify under Pradhan Mantri Awas Yojana (PMAY) for Credit Linked subsidy scheme(CLSS), the applicant can apply through http://loanyantra.com partnered banks and get assured lower interest till you close the loan.

 

 

 

On what basis home loan is given in India?

Home Loan depends on following factors

  1. Your Salary or Your Business turnover
  2. Your age
  3. Your Existing Loans
  4. Your Credit Score.
  5. Last but not the least the Property you are buying & Own contribution to pay 20% of the property
  6. Location , approvals of the property.

Your Salary : You should be earning enough to pay the 80 lac EMI.

Your Age : Based on your age, maximum Loan tenure will be decided. Before you retire i.e 58 years you should be clearing the loan.

Existing Loans : If you have any exiting Loans, you will be paying EMI so you overall eligibility would come down for the next loan.

Credit Score : Banks/NBFC would look at your credit report and based on how you have paid will decide to go if they want to give you loan

Property : When you are asking for Rs 80 lac loan, it would mean at least the property should be Rs 1 crore. Technically the price of the property should support it and you have to pay 20% from your self funding and 80% you can take loan. It should not be like for Rs 10 Lac property you are paying Rs 1 Crore.

Approvals of the property : Based on the Location and type of approvals and amount of deviation while constructing banks would take a call if they will be giving loan or not.

So based on the property you have selected and based on your financial profile you need to select the bank and the loan product. Some not so famous banks will have better products for certain properties.

Plan your loan well, so that you will close faster and home will be fully yours.

If you are looking for Home Loans and want right home loan fit for you and to plan it well to close fast then apply on LoanYantra | Get Home Loan Online .

If you already have existing home loans then to plan it well and close faster, then manage the loan on Loanyantra for free Home Loan Management Company India: LOANYANTRA

What will happen if the rate of interest on home loans decreases?

It would based on what you have fill while applying your loan.

They are two possibilities, when rate of interest on home loan decreased.

  • Option 1: Fluctuating EMI
    • Here your EMI will be reduced.
  • Option 2. Fluctuating Tenure
    • Here your Tenure will be reduced.

Let me explain which one is advantage of the both .

First, when you have applied for a loan with the floating rate of Interest, you have to opt what is the change you like to have from above two options.

By default most of the banks the Option 2 is by default, i.e tenure would decrease if the rate comes down and tenure would increase if rate goes up.

Which one is better ?

If you have opted for Option 1, that EMI should change then your tenure gets fixed and when rate comes down your EMI will reduce and when rate goes high your EMI would increase. So if you are contributing maximum of your salary towards EMI then be cautious about it. It can hurt other financials.

When the rates are downward trend the keeping the EMI constant would reduce your tenure drastically. For example, for a Rs 50 lac loan for 20-year tenure if the rate drops by 0.50% then your tenure would reduce by 30-months that is (2-years 6 Months) almost saving Rs 15 lac. But if the rate are upward trend then keeping your EMI constant then your tenure is going to go up same as above by 30-more months of EMI. Which would mean Rs 15 lac more.

So, its always good to manage your loan and keep changing EMI according to your financials. In interest rate downward times decreasing Tenure is good and in interest rate upward trend increasing EMI is good.

If you plan your loan well, you will be able to close it faster and home will be fully yours.

If you already have existing home loans then to plan it well and close faster, then manage the loan on Loanyantra for free Home Loan Management Company India: LOANYANTRA

If you are looking for Home Loans and want right home loan fit for you and to plan it well to close fast then apply on LoanYantra | Get Home Loan Online

Will it be a wise decision to take a max eligible home loan?

Decision would be based on multiple factors to be consider before you make a decision.

If you are young say if you are only 28 years and present CTC is good. Consider following factors.

  1. Other financial liabilities that you have.
  2. If you are not married then there it would add value by possessing a bigger house also beware of the costs which will be there for your marriage.
  3. If your work is going to have a good increments at least by 10% annually and you are planning your professional life for moving to next stage.
  4. Property you are buying is for Living or for renting it out.
  5. Work on the tax benefits you would get because of opting for loan.

My suggestion would be go with the Maximum and try to pay as much as you can before other costs come up in life. Like the marriage, kids, there education.

Always have following,

  1. Term insurance atleast 5–10 times your present salary.
  2. 10–20% as the emergency funds of your present salary. By means of Fixed deposits or equal safer and faster withdrawal.
  3. Start a health insurance for at least 3–5 lac apart from what your company is providing.

All the above if you start early at the age of 28 would be cheaper.

Then opt for maximum home loan.

If you plan your loan well, you will be able to close it faster and home will be fully yours.

If you are looking for Home Loans and want right home loan fit for you and to plan it well to close fast then apply on LoanYantra | Get Home Loan Online .

If you already have existing home loans then to plan it well and close faster, then manage the loan on Loanyantra for free Home Loan Management Company India: LOANYANTRA

When Can You Go For A Home Loan Transfer

Home Loans have become the most popular tool to achieve one’s dream of buying a home. With so many banks and HFCs offering tailored home loan solutions, people are now more inclined towards home buying. Banks and HFCs have home loan eligibility calculator that will help you assess how much loan banks will give you and what will be your EMI. 

Home Loan Transfer 

Balance transfer, home loan refinancing are interchangeably used with Home Loan Transfer. It helps the borrower to avoid higher interest rates by transferring to another lender which offers lower interest rates. Borrowers usually prefer this option to reduce the burden of interest rate and EMI. The good news is that all the banks and many HFCs in India offer the facility of home loan transfer.

Do You Know!

Although Home Loan Transfer appears to be a lucrative scheme yet one needs to try cost-benefit analysis before opting for a balance transfer.

Firstly, to avail the option of Home Loan Transfer, you need to be in the good books of the bank, make sure that you pay your EMIs regularly.

Secondly, balance transfer decision depends on the difference between interest rate offered by the two banks (one from where you have taken the loan and second from the bank where you wish to transfer your home loan).

Last but not the least, the outstanding amount of the home loan and the tenure left is also an important factor to consider before going for a Home Loan Transfer. Because, it is not a good deal if unpaid loan amount and tenure both are low. Though there are no prepayment charges levied, but while transferring the loan, calculate for the processing fees. It is calculated on the outstanding loan amount, usually, the maximum is Rs. 8,000.

home-loan-transfer_loanyantra-com
Calculate Before You Go For A Home Loan Transfer

Always calculate. For example, if 50 lac is outstanding loan amount and calculate-homeloan-transfer_loanyantra-comyour bank charges interest rate of 12 % then you have to pay a total of Rs 58, 01,513 as interest and you choose home loan transfer option to another bank offering interest rate of 11.5% for a time period of 15 years then the interest that you have to pay comes to be 55, 13,708 which means you save 2.87 lac.

This is a substantial amount and even if your bank levies a processing fee for home loan transfer, your saving is on a higher side. So,you can go ahead with balance transfer option.  

An important note which banks consider before lending is your credit score. Always check your credit score before applying for a balance transfer. It is important that your credit health score is good and you have all your bills cleared. 

Banks usually charge 0.5% of the loan amount or flat fees of Rs. 5000-10,000 as processing fee for home loan transfer.

How does home loan balance transfer help you?

Advantages of balance transfer includes the following :

  • It lowers the monthly installment
  • You can save on your interest and use for an important reason.
  • Makes your home loan more affordable
  • Banks and HFCs also offer customized solution that will match your requirement
Home Loan Transfer Process
  • Submit a request form to your current bank. The application also asks for the name of the new bank where you will be transferring the loan.
  • After this, the bank will look into your application and will issue an NOC (No Objection Certificate) that mentions outstanding loan amount.
  • This NOC is then submitted to the new lender and the new bank will study your credit history.
  • CIBIL score should be 700 points to get a loan. Once bank approves your application, all the property documents and other documents like ID proof, ITR etc. are transferred to the new bank.
  • Voila!!! You now have your home loan at a better interest rate and you are ready to smile even bigger now.

Our Role: LoanYantra is an unbiased platform where we offer you the best options pertaining to a home loan. Our home loan transfer service will help you find the right financial institution which will lessen your burden of home loan repayment. Moreover, we have up-to-the-minute information related to lenders and interest rate changes in particular.

Not only availing home loan transfer through loanyantra will make the process easier, but also we will keep a track of your interest rate till you close the loan and help you reduce it whenever possible which helps in saving on the home loan.

Talk to us and let us know your requirement about home loan transfer to serve you better.

Can I apply home loan from two different banks and can avail the best one after they both provide an approval letter?

Yes You Can .. but You Should Not.

You can apply for as many banks and NBFC you like to apply. But you need to know what are the disadvantages you will have if you apply for multiple loans.

Disadvantage of applying with multiple banks for home loan for same property ?

  1. Every bank will check your credit report and its a hard touch. Which means on every time bank pulls your credit report your credit would come down by certain points. Also it would be reflected in you Credit report who had queried it. So it affects your credit score and it affect your loan eligibility over all
  2. Every bank or NBFC would charge you a processing fee. Its compulsory to take a cheque leaf as a processing fee. If the banks or NBFC say ZERO-Processing fee, that would mean they would refund it once the loan is disbursed, it will not be refunded if its only sanctioned and not disbursed. So now you will have to pay to multiple banks.
  3. In time to come all the banks are maintaining a common data base of the loan process state for a certain property. If one bank is processing then other bank till NOC from other bank will not process. This system is under proposal and will be available shortly. Right now Banks and NBFC use CERSAI for it.
  4. Last but not the least, you will have to face multiple bankers, have to submit multiple times the same documents and the pressure the banker or brokers would put is not pain free. So avoid it.

If you plan your loan well, you will be able to close it faster and home will be fully yours.

Instead of applying with multiple lenders its always good to get right suggestion and apply for one lender.

If you are looking for Home Loans and want right home loan fit for you and to plan it well to close fast then apply on LoanYantra | Get Home Loan Online .

If you already have existing home loans then to plan it well and close faster, then manage the loan on Loanyantra for free Home Loan Management Company India: LOANYANTRA

Home Loan Interest Rates

What is Home Loan Interest Rate?

Home Loans have become the best medium to buy homes. Banks and NBFCs offer various home loan schemes and alluring interest rates that attract the home buyer. The key deciding factor for a customer to avail home loan from a particular financial institution is determined by the interest rate. The interest rate is charged on the principal loan amount. 

What determines interest rates on your Home Loan?

It is the bank that decides their lending rates. This depends on their cost of funds and NIM or Net Interest Margin which the banks need to earn to earn a profit and cover their operation cost.

An important point to note here is that home loans to salaried employees are offered at a lower rate as compared to those who are working in the unorganized sector; the prime reason for this is the stability of income of salaried employees.

The home loan interest rates calculation by the nationalized banks is presently based on MCLR or Marginal Cost of Lending Rate method. To this rate, the spread is added and then the final interest rate is mentioned to the customers or borrowers. And the NBFCs use Prime Lending Rate (PLR) calculation method.

Types of Home Loan Interest Rates

There are two kinds of home loan interest rates:

  • Fixed Interest Rate Loan-   This rate of interest remains fixed and the borrower has to pay a fixed EMI during the home loan tenure. The market fluctuations don’t impact the home loan rate. A major point of concern when it comes to fixed home loan rates is they are 1-2.5% higher than the floating rate of interest. If a borrower has fixed home loan then he/she doesn’t get the benefit if the home loan rates go down. Their EMI remains unaffected by it.
  • Floating Interest Rate Loan–  As the name indicates, floating rate loans have interest rates that change with the market condition. The are highly susceptible to market fluctuations. If the base rate changes, the floating rate also gets changed along with it. They are usually cheaper than the fixed rates but being highly influenced by the market condition they may vary as the RBI changes the rates.


Factors affecting home loan  
interest rate

  •    home-loan-interest-rates_loanyantra-comIncome
  •    Credit score
  •    Location of the property
  •    Loan amount
  •    Type of loan
  •    Loan tenure
  •    Type of interest rate
  •    Employment type
  •    On-going promo offers

All the banks and HFCs offer lucrative and competitive interest rate on the home loan, here is

The list of banks and HFCs and their interest rate.  

Banks and HFCs associated with Loanyantra Home Loan Interest Rate Range
SBI 8.50% – 9.10%
ICICI 8.65% – 10.10%
HDFC 8.65% – 9.25%
DHFL 9.00% – 10.00%
Indiabulls 8.65% – 12.25%
Standard Charted Bank 9.25% – 9.4%
Aditya Birla Housing Finance 8.65% -8.89%
IDBI 9.35%
Axis 9.15%-9.35%
CITI 8.8%- 9.55%
HSBC 8.85%-10.4%
Banks and HFCs not associated with Loanyantra Interest Rate
PNB Housing Finance 8.9% – 9.6%
LIC Housing Finance 8.5%
Kotak Bank 8.75%
Edelweiss 10.5%-10.9%
Reliance Capital 10%-11.75%
Bank of Baroda 9.6%
Indian Bank 9.65%
Dena Bank 9.6% – 9.85%
Bank of India 8.6% – 8.75%
Federal Bank 9.6%
Union Bank of India 8.8%
Allahabad Bank 8.7%-9.25%
Bank of India 8.65%-8.7%
Bank of Maharashtra 8.75% – 8.85%
Canara Bank 9.15%-9.70%

Discount on home loan interest rates by LOANYANTRA

Loanyantra is a one stop shop for all kind of home loan services. You process your loan with us and get 0.10% discount on the interest rate for one year. Also, manage your loan by the services provided by loanyantra. Get door-step service for the collection of documents and submitting them. Get updates about the process till disbursal. Our first priority is to understand our customer profile and then suggest them the best home loan which will match their requirement perfectly.  Get connected with us today to know more about home loans.

SBI Home Loan Interest Rates 2017

The most awaiting part of the demonitisation is here. Low interest rates for home loans. After the P.M., Narendra Modi’s speech on 31st December, 2016, banks now race with each other to reduce the home loan interest rates. Since there were no rate cuts by RBI Governor in the recent quarter review, there were less hopes for interest rate reduction.

After Modi mentioned in his speech about banks taking care in encouraging the poor, SBI had taken initiative in reducing the home loan interest rates. The new year started with the rate cut war.

SBI Home Loan Interest Rates

“THE MOST PREFERRED HOME LOAN PROVIDER” voted in AWAAZ Consumer Awards along with the MOST PREFERRED BANK AWARD in a survey conducted by TV 18 in association with AC Nielsen-ORG Marg in 21 cities across India.

sbi-home-loan_loanyantra-comSBI Home Loans come to you on the solid foundation of trust and transparency built in the tradition of SBI
  • Flexible repayment with tenure up to 30 years
  • Choose your loan amount and repayment schedule
  • Apply & get instant approval

Know more about the current SBI Home Loan interest rates

SBI Home Loan Interest Rates for women 8.60% – 8.65%
SBI Home Loan Interest Rates for Others 8.65% – 8.70%
SBI Maxgain Interest Rates above Rs. 20 lacs & upto Rs. 75 lakh (women) 8.75%
SBI Maxgain Interest Rates above Rs. 20 lacs & upto Rs. 75 lakh (others) 8.80%

sbi-home-loan-current-interest-rate_loanyantra-comExisting Home Loan borrowers can opt for switch over to current rate of interest on Home Loans by paying 0.50 % + applicable Service Tax of the outstandings

Get more benefits by availing your home loan through loanyantra.com. Get extra 0.10% discount on the interest rate for an year. The existing customers enjoy the benefit of managing the home loan and reducing the interest rate  on self interest.

Follow us and know more customised tips and save more on your home loan.

HDFC Home Loan New Interest Rates(January 2017)

Create a Space of your own with HDFC Home Loans. As expected, after SBI reduced the home loan interest rate, HDFC slashed its interest rates too.

hdfc-home-loan-interest-rate_loanyantra-comHave a look at the HDFC home loan new interest rates.

RPLR – 16.30%

Loan Slab Interest Rates (% p.a.) RPLR Minus Spread
For Women (upto 75 lakhs) 8.65 to 9.15 RPLR – (7.65 to 7.15)
For Women (above 75 lakhs) 8.70 to 9.20 RPLR – (7.60 to 7.10)
For Others (upto 75 lakhs) 8.70 to 9.20 RPLR – (7.60 to 7.10)
For Others (above 75 lakhs) 8.75 to 9.25 RPLR – (7.55 to 7.05)
Who Can Apply

You can apply individually or jointly for HDFC Home Loans. All proposed owners of the property will have to be co-applicants. However, all co-applicants need not be co-owners. Generally co-applicants are close family members.

Loan Term
  • The maximum period of repayment of a loan shall be up to 30 years for the Telescopic Repayment Option under the Adjustable Rate Home Loan. For all other Home Loan products, the maximum repayment period shall be up to 20 years.
  • The tenure of the loan is also dependent on the customer’s profile, age of customer at maturity of loan, age of property at loan maturity, depending upon the specific repayment scheme as may be opted and any other terms which may be applicable based on prevalent norms of HDFC.
hdfc-home-loan_loanyantra-comProcessing Fees

Up to 1.25% of the loan amount or ₹ 3,000 whichever is higher, plus applicable taxes.

Prepayment Charges

Prepayment charges at a rate of 2% plus Taxes and Statutory levies and charges, as may be applicable from time to time, of the amount being prepaid are payable.

Conversion Fees

The fee payable to avail the conversion shall be 0.50% plus applicable taxes of the principal outstanding plus the undisbursed loan amount or Rs.50,000 plus applicable taxes, whichever is lower.

Property Insurance

Property Insurance is compulsory and the customer shall pay the premium amounts directly to the insurance provider, promptly and regularly so as to keep the policy / policies alive at all times during the pendency of the loan.

HDFC Home Loans Under Pradhan Mantri Awaaz Yojana

Interest subsidy of 6.25% p.a. upto a loan amount of Rs. 6 lakh 15 years or hdfc-awaaz-yojana-_loanyantraactual term, whichever is lower. And Family Income should not exceed Rs. 6 lakh per annum.

 

The rate cut comes after a nudge from Prime Minister Narendra Modi in his year-end speech, where he said that massive inflow of deposits spurred by the demonetization of high-value banknotes has led to a significant reduction in the cost of funds.

“Over the past couple of months we have seen a drop in our marginal costs of funds and as always HDFC has ensured that benefit is passed on to its customers,” said Renu Sud Karnad, Managing Director, HDFC.

For further reduction in interest rate, logon to www.loanyantra.com and get 0.10% discount for one year. For those who already logged in, get free loan management till the closure. Enjoy the cash back benefits by referring your friends.