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.

 

Demonetisation effect on Home Loans

Demonetisation effect on Home Loans was seen from Jan-1st-2017, when SBI made a announcement of it’s forth-Night MCLR rate coming down to 8.00% from 8.90% and Home Loan rate from 9.00% to 8.50% itself shows demonetisation effect was positive on Home Loan rate. But, did you miss something, I am sure you have missed it.

MCLR had reduced from : 8.90% to 8.00%  :  reduced by 0.90%

Where as Home Loan rate has reduced by only 0.50% (9.00% – 8.50%) where did the remaining 0.40% go.

Who is taking that extra 0.40% , when its not passed on to the new home loan rate ?

What most of the banks have done is they have increased there margins from 0.10% to 0.60%.

Now let me go into more details about, was demonetisation a benefit or loss to new Home Loan Seekers and existing customers.

Demonetisation effect on Home Loans

Let me explain in detail,  Before I tell you, why customer who had taken home loan in Dec-2016 is better rate then post demonetisation. First I would recommend how MCLR is calculated  to understand why MCLR had reduced due to demonetisation and now I would like to explain, how the home interest rate is set by banks.

Interest rate consist of 2 components.

Interest Rate = 1-Year MCLR  Rate + Margin Rate

Recent announcement was :  1-year MCLR Rate : 8.00 %

Margin Rate  was : 0.60 %

So effectively the Interest rate was set to  8.60 %  = 8.00 % + 0.60 %

Prior demonetisation was 9.00% = 8.90%(1-year MCLR) + 0.10% (Margin Rate)

What is 1-year MCLR ?

When we avail a loan with 1-year MCLR,  it’s 1-year Fixed loan. Which means any changes in  MCLR during that 12 months, your home loan will not be affected. For example if you availed home loan in Dec-2016 your interest rate change will be only in Dec-2017. So any change , decrease of MCLR or increase of MCLR, your home loan rate will not change during this 12 months. In Dec-2017 your home loan rate will get updated based on the 1-year MCLR during Dec-2017. Again next change will be next year Dec-2018 and this would continue till closure.

What is the Margin Rate ?

Margin Rate is what Banks take as the operational costs. It gets fixed when you have taken.  For example if you had availed home loan in Dec-2017 your home loan should have been 9.00% (8.90 + 0.10) your margin should be only 0.10 %. So your Interest rate would be 1-year MCLR + 0.10% for ever.

Now let’s compare your home loan with the new rates

Year 1-Year MCLR Customer who had taken in Dec-2016 time frame. Customer who had taken in Jan-2017 time frame.
Dec-2016 8.90 % 9.00 % (8.90+0.10)
Jan-2017 8.00 % 8.60 % (8.00+0.60)
Jan-2018 If 7.50 % in Dec & Jan 7.60 %(7.50 + 0.10) 8.30 %(7.70 +0.60)
Jan-2019 If 8.60 % in Dec & Jan 8.70% (8.60 + 0.20) 9.05% (8.60 + 0.45)
Sep-2019 If 9.25 % in Sep & Jan 9.35 %(9.25 + 0.10) 9.85%(9.25 + 0.60)

It would continue till the closure of the loan.  What we are seeing right now is, Short term profit and long term loss. People who convert to new rate without the long calculation they would start to pay every year 0.50% more than December rate.

1-year-MCLR had decreased drastically only due to demonetisation. Hopefully we need not stand in long Queues every year. Mostly its once in lifetime event.

Instead of banks making profits due to demonetisation drive they should have passed on the benefits to the end customers.

Hope to see cut in the Margins in coming days. Happy home Loans.

This complex calculations and to understand what is long term profit & short term loss Vs short term profit with long term loss . Which one is better, to be left to the professionals. http://loanyantra.com is best at this. We will wait for the margins to come down, then we would recommend the right change that would ensure you save the most on your home loans…

Happy Home Loaning…

Team

Loanyantra.com

Demonetisation and Home Loan Interest Rates

To understand the relation between demonetisation and the effect it will have on the home loan interest rates, let us dive into the issue in 7 simple questions.

rs-500-and-rs-1000-ban_loanyantra-com

1. Why Is Demonetisation now in India is really a success-driven?

In India now, along with the rupee cancellation, there is a withdrawal limit which is making the demonetisation, a real strike.

2. What happens if there is a withdrawal limit?

With the ban on the 500s and 1000s, and with no further issuance of 1000s, people started depositing their hidden money in the bank accounts. Deposits happen in the form of new income mixed old income. But when you want to withdraw, there is a limit. This results in low cash in hand.

3.What happens when there are more deposits.

Already, 80% of the cash in hand with the people is deposited in the banks. And the RBI is soon reaching its limit of having cash with itself. More deposits with banks result in more money circulation among banks.

4. What if more money circulation with banks?

Before demonetisation, there was 60% of unaccounted money circulation among people. Now that money reached banks and no doubt there will be double circulation of money. If banks are rich, RBI soon cuts the repo rate (the rate at which RBI lends money to the commercial banks) and also there will be a perfect management of CRR (the amount banks have to deposit with RBI for control of the economy).

5. What happens if the repo rate is reduced?

The repo rate and home loan interest rate are directly related. So, the reduction in repo rate automatically reduces the fixed deposit interest rates and also the loans interest rates.

6. How will the home loans be affected in near future?

After Raghuram Rajan’s expert financial management on our economy, the home loan interest rates have already come down from 13% to 9.5%. Now, with the enough deposits with banks, the home loan interest rates will be much lesser, might be as less as 7%. No wonder even if it goes much lesser.

7. Which type of interest rate to opt?

To be really brisk, flexible interest rate is the best opt one now, from the day one of your loan. Immediate and constant measures to control deflation by the government will surely control the psycological deflation and stabilise the economy. Infact, giving way for the growth of the economy in true way. This always keeps the flexible interest rate low when compared to the fixed interest rate.

Loanyantra’s Tip : Low cash in hand gives the psycological feeling, even for the better earned person, of no money to spend. This is momentary. Keep dreaming about your sweet home and continue your process of home search. If you can dream, we can get it real by our low interest rates.

Diwali Home Loan Offers

Diwali is the celebration of joy. People double the joy by investing in gold, silver and land. So, no doubt this diwali is here too with some exciting offers. This festive season enjoy offers on home loan too along with the other purchases. Shop for the lowest interest rate from various banks. Gift yourself a low interest rate home loan. 

Loanyantra.com customizes your home loan and provides loan at 9.1% interest rate (lower than the existing interest rate), 0.10%Discount, for one year, on home loan interest rate.

loanyantra-discount

Avail Home loan through Loanyantra and welcome Goddess Lakshmi to your home by getting a silver coin as an assured gift.

loanyantra-silver-coin-free

 

Here are the home loan lenders associated with LOANYANTRA.COM providing exciting Diwali offers on home loans.

DHFL – 

This Diwali, DHFL Home Loans gives you more reasons to celebrate.
DHFL now offers Home Loans at 10.15%*.

Special Diwali Offer* –

  • Lower Processing fee *
  • Loan tenure of up to 30 years
Loan Value  Diwali Dhamaka Processing Fees* Offer
Loans up to 30 lacs Rs. 5,000 + Doc Charges + Taxes
Loans between 30 to 75 lacs Rs. 10,000 + Doc Charges + Taxes
Loans above 75 lacs Rs. 20,000 + Doc Charges + Taxes

ICICI – 

Salaried Borrower

Floating Interest Rate
Category Effective Rate of Interest Rate
Up to ₹ 5 crore 9.35% I-MCLR-1Y + 0.30%
Above ₹ 5 crore 9.60% I-MCLR-1Y + 0.55%

INDIABULLS HOMELOANS – 

HOME LOANS VARIABLE RATE

Loan Amount Variable Rates%
Upto and including Rs 500 lacs 9.30% to 11.75%
More than Rs 500 lacs 10.25% to 12.25%

HDFC – 

Adjustable Rate Loan

RPLR: 16.30%

Loan Slab Interest Rates (% p.a.) RPLR Minus Spread
For Women* (Any Loan Amount) 9.30 to 9.80 RPLR – (7.00 to 6.50)
Any Loan Amount 9.35 to 9.85 RPLR – (6.95 to 6.45)

diwali-investment_loanyantra-com

AXIS Bank

For salaried individuals

Sr. No Type Loan amount (Rs.) MCLR + Mark Up Effective Rate Of Interest
1 Floating Rate Loan amount upto Rs 28 lacs MCLR + 0.20% 9.45% p.a.
Loan amount above Rs 28 lacs MCLR + 0.25% 9.50% p.a.
Top Up for existing customers Upto 30%- Same rate at which the home loan is running
30%-100%- LAP rate shall be applicable

SBI – 

(MCLR: 9.05%)
Borrowers’ category Home Loan interest rate, irrespective of loan limit EMI per Lac for 30 year Tenor Maxgain above Rs. 20 lacs & upto Rs. 1 crore Maxgain above Rs. 1 crore CRE Maxgain, irrespective of loan limit
Women 20 bps above the MCLR i.e. 9.25% p.a Rs. 823 30 bps above the MCLR i.e. 9.35% p.a. 55 bps above the MCLR i.e. 9.60% p.a. 75 bps above the MCLR i.e. 9.80% p.a.
Others 25 bps above the MCLR i.e. 9.30% p.a. Rs. 826 35 bps above the MCLR i.e. 9.40% p.a. 60 bps above the MCLR i.e. 9.65% p.a. 80 bps above the MCLR i.e. 09.85% p.a

Aditya Birla Housing Finance : 

Home Loans Salaried Self Employed
Rate of Interest 9.35% to 10.50% 9.75% to 11.00%

IDBI  Home Loan – 

Marginal Cost of Funding based Lending Rate (MCLR) 9.30% p.a. (with annual reset clause)
Base Rate 9.65% p.a.

HSBC –

 Floating Rate for Home Loans  Regular Smart
Salaried 9.35% p.a. 9.95% p.a.
Self-Employed 9.45% p.a. 10.00% p.a.

 

Increase the joy of investing by getting better deals. Choose loanyantra.com for even lesser interest rate and remain stress free with the services it provides.

SBI Home Loan Interest Rates

SBI Home Loan Interest Rates 

HOME LOANS – INTEREST RATES With effect from 01.10.2016

(MCLR: 9.05%)
Borrowers’ category Home Loan interest rate, irrespective of loan limit EMI per Lac for 30 year Tenor Maxgain above Rs. 20 lacs & upto Rs. 1 crore Maxgain above Rs. 1 crore CRE Maxgain, irrespective of loan limit
Women 20 bps above the MCLR i.e. 9.25% p.a Rs. 823 30 bps above the MCLR i.e. 9.35% p.a. 55 bps above the MCLR i.e. 9.60% p.a. 75 bps above the MCLR i.e. 9.80% p.a.
Others 25 bps above the MCLR i.e. 9.30% p.a. Rs. 826 35 bps above the MCLR i.e. 9.40% p.a. 60 bps above the MCLR i.e. 9.65% p.a. 80 bps above the MCLR i.e. 09.85% p.a
  • Woman should be the sole applicant or one of the co-applicants for Home Loan, and also
  • The woman should be the sole owner or one of the co-owners of the property proposed to be financed by the Bank

sbi-home-loan-interest-rates_loanyantra-com

Loan Against Mortgage of Immovable Property. 

Loan Against Property Under MCLR (One Year) Spread Over MCLR Effective Rate (1 Year Reset)
Upto 1 Cr. 9.15% 1.60% 10.25%
Above 1 Cr. upto 2 Cr. 9.15% 2.10% 11.25%
Above 2 Cr. upto 5 Cr. 9.15% 2.60% 11.75%

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