Comparison of different parameters with different banks.
Buying a home through a home loan, though it is common, but not a simple issue to let the things go as they come. All it needs is getting correct information, hitting the correct lender, getting the exact amount what we need, depending on a reliable source before handing over the signed cheques.
Before I take you to a tour about different lenders’ information, I want to jot down the most important points to be noted before I handover the PDCs to the home loan lender which play an important role through out the tenure.
However big your house may be, or in whatever prime location your house is, the top lender or even the new lender in the market doesn’t care if your CIBIL score is less than 750. Yes, your application is rejected. The best performing loan agents also cannot help you if you carry a bad credit history along with you.
Repayment tenure is similar with every lender which is 30 years maximum and of course it depends on your age though.
Calculation method depends on the type of lender. Banks use MCLR and NBFCs use RPLR. Over that rate, the lenders add their spread or substract the their spread rate.
Spread rate varies from lender to lender which is the cause for the slight variation in the interest rates.
Choose home loan overdraft facility lender if you want no risk investment for your idled money. Provided if you are fine with the slight rise in the interest rate for the home loan overdraft product.
The Loan to value (LTV) ratio is the major decision making point as it decides loan amount and your pocket amount. The more the loan amount the lesser the sanctioned amount. Say 90% of loan amount is sanctioned if loan amount is 30 lakhs and 80% of loan amount for 30 to 75 lakhs and 75% of loan amount if the loan amount is more than 75 lakhs. But there are lenders, mostly all the NBFCs,who include registration fees too in the property value amount and then calculate the ratio of loan amount which enables the borrower to get more loan amount.
Insurance for your home loan is made mandatory by all the lenders. Check with the lender for the insurance plans, insurance partner and if premium included in the loan amount. Actually, you need not run through all the websites as Loanyantra experts can assist you about all the lenders in one call.
Offers with processing fees, legal charges are a part of promotional activities by the lenders. Call Loanyantra to know seasonal offers going on exactly the time you apply for loan. Also calculate whether you really benefit from that offer.
The average time taken for your loan process depends on how many times you follow up with the lenders by missing your office and attending the bank. Loanyantra’s experts can give you an estimate of how many days it will take depending on the property you choose. The needed can be served by our executives keeping them on top in the priority list.
Salary account benefits are available if you go for loan with the same salary account. Like HDFC offers salary account overdraft upto 1 lakh and ICICI Bank offers home loan overdraft to customers holding salary account. Let Loanyantra know your salary account bank name too which makes your decision easy with the information you get from experts.
Here I go with the details about each top home loan lender in India. Your requirement lets you choose the right one.
Bank or NBFC
Home Loan Advantage Product
0.35% or 2,000-10,000/-
Yes at 8.75%
0.50 -1.00% + taxes
Yes for salary account holders
0.5% or 11,500
1.00% or 10,000
Yes at 9.10%
Super Saver Scheme – 20 Yrs
0.50 to 1.00% or 10,000/-
1% Or 10,000/-
Yes at 8.96%
0.35% or 2,000 to 15,000/-
Yes at 8.95%
PNB Housing Finance
0.5% (min. ₹5,900)
One time fee
Loanyantra is always a great source of help for a hassle-free process. Manage your loan process by sitting wherever you are through Loanyantra.
Budget 2018-19, the 5th budget and the last budget in P.M Narendra Modi’s tenure, presented by Finance Minister Arun Jaitley, left no hopes for reduction of home loan or personal loan interest rates.
Though the budget sounds rural and weaker section friendly, it is worth mentioning that it is a much foresighted budget which if really implemented and taken as it is to the poor, will surely make India Proud.
After a two day meet, the Monetary Policy Committee (MPC) of the Reserve Bank of India, announced a no repo rate change. Repo Rate, the rate at which the RBI lends money to the banks, doesn’t change and remains at 6%.Five members of the monetary policy committee voted to keep rates unchanged, with one member, Michael Patra, voting for a 25 basis points hike.
The inflation which is at a high pace is expected to increase further, as the analysts see. Commenting on the RBI policy statement, Anjali Verma, economist, Phillipcapital India, said: “The policy decision is in line with our expectation along with the hawkishness that is built into the statement. While we retain status quo from RBI for FY19, a risk to our call may come from higher inflation.”
Here are some other key projections from the central bank’s sixth bi-monthly monetary policy statement of 2017-18:
– GVA growth (value of goods and services) for 2017-18 projected at 6.6%
– Reverse repo rate (rate at which it borrows from commercial banks) kept unchanged at 5.75%
– Inflation forecast at 5.1% in fourth quarter of fiscal year 2018
– RBI estimates retail inflation in 5.1-5.6% range in first half of 2018-19, 4.5-4.6% in second half.
Know about repo rate and its influence on loan interest rates
Reverse Repo Rate
Interest Rate – Home Loan
Interest Rate – Personal Loan
Tax Advantage from Union Budget :
There is no more medical reimbursement and transport allowance by the government to the salaried and the pensioners. There is a standard deduction of Rs. 40,000, no need of submitting bills and documents. There is an increase of 1% cess from 3% to 4%. The net income on which benefit would be available is INR 5,800 and consequential income-tax saving will depend on the income-tax bracket an individual falls in. In case of taxpayer who are differently abled persons, the transport allowance exemption would continue.
Before Budget 2018-19
After Budget 2018-19
Loans Cheaper than Usual :
Before 2016, the home loan interest rates used to be 14%. Slowly RBI reduced the repo rate and in turn, there is a reduction in interest rates to 8.3%.
If you are one of the luckiest persons to shortlist your dream home, then why delay, the interest rates are much lower than ever before. Book your home and start paying your home loan EMI and close it as fast as you can.
Loanyantra looks at all your financial needs. Why worry for anything else. We look at the trends of the interest rates and guide you the best lender according to your requirements. Whether a home loan or personal loan, we are just a missed call away. Once you are our customer, your loan is our loan. Follow our updates and start saving on your loans and close it early.
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.
Now-a-days, competition for home loans has outgrown competition for homes. This rose a requirement of applying online for a home loan.
When you can search for your home online, then why not search for a home loan online. So after searching and applying online, we take our services a step forward. This idea is in action only to take the home loan and the related services to our customers customized.
What makes us different from others.
As we are, our service starts where many others’ end.
Once you apply online, we take you through the process, which is simple and transparent. Check your eligibility and we guide you to the customized interest rates. If you find us your true beneficiary, associate with us. You will get a call within no time. Get home loan approval from the required bank.
So now, you experience our efforts. Retire from your home loan thoughts. You are into our loan rate shield process. We send you alerts on changing interest rates and suggest you for a balance transfer when needed.
Infact, we are managing your loan. Each step, from the time you enter your details, apply online, getting customized rates, getting required bank approvals, and timely alerts, we try to save your valuable time, make it economical and most important keep you away from stress.