Compare Home Loan Interest Rates*
|Bank/Lender Name||Home Loan Interest Rate||Loan Processing Fees|
|HDFC Bank||8.65% to 8.75%||0.5% of loan amt. or Max. Rs. 11,500|
|ICICI Bank||8.70% to 8.85%||0.5% of loan amt (Min. Rs. 11,500)|
|Axis Bank||9.45% to 11.60%||0.5% of loan amt (Min. Rs. 10,000)|
|SBI||8.50% to 9.65%||0.25%|
|IndiaBulls||9.95% to 10.40%
8.65% to 10.05%
|Upto 0.5% of the loan amount|
|DHFL||8.60% to 9.75%||Rs. 5000 to Rs. 20000|
|IDBI Bank||8.80% to 8.85%||Nil|
|LIC Housing Finance||8.50% to 8.90%||Rs. 1000 to Rs. 15000|
|Punjab National Bank||8.8% to 9.1% (Floating)
9.1% to 9.3% (Fixed)
|Upto 0.5%(Minimum Rs. 5750)|
|PNB Housing Finance||9.40% onwards||Nil|
|Tata Capital||8.65% to 8.85%||0.2% of the loan amt|
|Bank of India||8.65% to 8.7%||Min. 1000 and Max. Rs. 20,000|
|United Bank||8.60% to 8.65%||Nil|
|Canara Bank||9.15% to 9.70%||Rs. 1500 to Rs. 10000|
It’s very critical decision in our lives to take a home loan. One of the key signs of success among the fast-growing indian middle class is the ownership of the house. Having your “DREAM HOME” to live requires lots of planning and calculation. After all it’s your own house to rest and relax with your loved ones. In an easy way, Home loan allows you to acquire your own dream home. But paying the huge amount for your dream home puts you in deep thinking. The continuous increase is there in the desire to own a house and this has lead the price of property to reach unmatched highs in recent years. Before you finalise your bank to secure home loan, try to get more information on current interest rates from different banks.
Eligibility calculation for Home Loan
The eligibility for Home Loan can be calculated by the value of the property or borrower’s repayment capacity. Borrower’s eligibility for getting a Home Loan is determined by borrower’s:
- Saving history
- Stability and Continuity of Occupation
- Number of dependents
- Assets or Liabilities
Bank allows the borrowers for funding 80% to 90% of property value but with the condition that you have capacity to pay it’s EMI each month. The loan applicant must be aged 21 years or above. The housing loan value that you are eligible for is the profit earned by you (this implies for self-employed individuals). Having a regular income source helps the loan provider to assess the borrower’s repayment capacity. Before you apply for a home loan, it is a better to check your eligibility to understand your status of eligibility or know where you lack.
Calculation of Home Loan Interest rate
If you know how to calculate interest rates, you will better understand your loan contract with your bank. You also will be in a better position to negotiate your interest rate with your bank.
Banks are required to quote interest rates on a ‘reducing balance’ basis. If you pay interest monthly, you’ll need to convert that rate to a monthly rate by dividing by 12 for your calculations (for example, a 12% annual rate becomes a 1% monthly rate). Almost every bank offers competitive interest rate on housing loan to attract the prospective customers. Therefore, in lower interest rate, the EMI stays constant, the split of interest and principal keeps changing, with the interest amount of EMI being at the highest in the first month and decreasing month-by-month to a nominal amount, in the last month of repayment.