Home Loan Interest Rates and EMI

1. Home Loan Interest Rates and EMI in Top 15 Banks Purchasing a home is a big financial decision & not everyone is able to generate their own money to buy a property. Most of the people rely on financial institutions to provide home loans. It is the most common way of getting finance for getting property. The RBI has reduced the repo rate to increase liquidity in the market as this has resulted into less rate of interest on home loans. For the forthcoming festive season, certain banks have already waived the transaction fees on home loans. You do not want to skip the discounts offered in the current market if you are an end-user looking for a home. In the past month, home loan interest rates have stayed muted. Despite an uptick in the number of cases of COVID-19 in India, economic development has steadily begun to gather traction once again. While home loan interest rates have not changed significantly in the past month, certain banks have now raised their loan interest cost premiums for borrowers whose credit scores have fallen below a certain amount.

2. Therefore, home loan applicants should be vigilant about their credit score, and if the score slips, their loan will become more expensive. SBP Group have provided the interest rate index, EMI and processing fees of different banks in the table below to make the choosing of a home loan product more convenient for home buyers. The EMI for a term of 20 years was determined on the basis of a loan of Rs 1 lakh. By multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the specified bank listed in the table, you can easily calculate the EMI for the desired amount. Interest rate and processing charge on home loan by banks (with indicative EMI) Floating interest rate (Percent, per annum) EMI per Rs 1 lakh (in Rs) Lender’s name Processing fee Up to 1% of the loan amount, subject to a minimum of Rs 10,000. Axis Bank 7.75-8.55 821-871 0.25% to 0.5% of the loan amount (Rs 8,500 to Rs 25,000). Bank Baroda of 7.0-8.35 775-858 0.25 % of loan amount (Minimum of Rs 1,500 and maximum of Rs 20,000). Bank India of 6.85-7.75 766-821 Canara Bank 0.50% (Minimum Rs 1,500 and maximum of Rs 10,000). 6.9-8.9 769-893 Central Bank India 0.50% of the loan amount, subject to a maximum of Rs 20,000. of 6.85-7.3 766-793 0.230% of the loan amount, with a maximum of Rs 20,470. Indian Bank 7.15-7.5 784-806

3. For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or whichever is higher. Rs 3,000, HDFC Ltd 6.95-7.85 772-827 Self-employed professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher. non- (Taxes extra) ICICI Bank 0.50% of the loan amount, plus applicable taxes. 6.95-8.05 772-840 IOB 7.05-7.3 778-793 0.5%, up to Rs 25,000. Full waiver of upfront / processing documentation during the Festival Bonanza Period from September 7, 2020 to December 31, 2020. fees and charges PNB 7.10-7.75 781-821 0.40% of the loan amount plus applicable GST, subject to a minimum of Rs 10,000 and a maximum of Rs 30,000, plus GST. SBI 6.95-7.6 772-812 South Indian Bank 0.50% of (Minimum of Rs 5,000 and maximum of Rs 10,000). loan amount 7.90-9.30 830-919 0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000). UCO Bank 7.15-7.25 784-790

4. Kotak Mahindra Bank Maximum 2% of the loan amount. 7.10-9.3 781-919 0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable tax). Union Bank 6.7-7.15 757-784 [Note: The data shown above is from the website of the respective bank, as of October 17, 2020] The EMI is based on a loan sum for a term of 20 years of Rs one lakh. Rate of Interests are based on the scheme of floating rates. Rates can be prone to modification after a specified period of tenure, accordance with the terms and conditions of the bank. The range of EMIs is descriptive and determined on the basis of the interest rates shown in the table. In a particular case, other charges and fees can be involved, as per the terms and conditions of the bank. Based on the loan applicant's credit history, the real interest rate can differ. The data in the table is for the purpose of illustration only. All these details of EMI and interest can help you in getting good deal on home loan. While a small improvement in interest rates makes a lot of difference, borrowers must be aware of the fact that prices are not the only criteria by which their lender can determine when it comes to the actual cost of repayment of the home loan. Often, remember who the lender is and how reliable they have been in the past in handing on to their clients the rate reduction benefits. You will have to pick your lender with extreme care, much like developers. Besides that, there are other factors which can help you in getting lower interest rates: a)Property in a prime area: house in a recognised society is more likely to earn up to 75-90 percent of the value of the mortgage loan sum. b)To get clearance for it, you must have a CIBIL score of 650 or higher. Make use of your strong credit score. c)High income-A individual making a high income is more likely to get lower rate and higher prices.

5. d)Apply to current bank-A clear agreement with the bank allows you to use a large volume of credit and without any trouble at a reasonable interest rate on your home loan. e)Keep all documentation relating to property-It is very important to retain and preserve all property records with you as it allows the landlord to better recognise your property and its valuation and therefore trust your profile. f)Move your home loan to a lower EMI- To save your funds, you can move your current home loan to a lender offering a lower rate on your home loan. For information related to any other real estate topic, you can explore SBP Group website.