|Banks/NBFC||Institution Type||Minimum Loan Amount||Maximum Loan Amount||Minimum Tenure||Maximum Tenure||APR||Fees & Charges|
|Axis Bank||BANK||₹3,00,000||₹500,00,000||1 Year||30 years||8% - 11%||Up to 1% (min of ₹10,000) + GST as applicable|
|Bajaj Finserv||NBFC||₹20,00,000||₹350,00,000||10 Years||20 years||Salaried: 8.85% - 10.30%||Up to 0.80% + GST as applicable|
|Self Employed: 9.25% - 11.15%||Up to 1.20% + GST as applicable|
|Citibank||BANK||₹2,10,000||₹10,00,00,000||1 Year||25 years||8.00% - 16.00%||₹10,000 + 0.20% of the Loan Amount + GST as applicable|
|DHFL||HFC||₹1,00,000||₹30,00,000||1 Year||30 years||10% - 19.07%||₹2,500 + GST as applicable|
|HDFC Bank||BANK||₹1,00,000||₹10,00,00,000||1 Year||20 years||8.80% - 9.55%||Up to 0.50% or ₹ 3,000 (whichever higher) + GST as applicable|
|ICICI Bank||BANK||₹5,00,000||₹3,00,00,000||1 Year||30 years||8.35% -9.10%||0.5% + GST as applicable|
|IDFC||BANK||₹10,00,000||₹10,00,00,000||1 Year||30 years||Salaried: 8.90% - 10.35%||₹10,000 to 0.20% of the Loan Amount + GST as applicable|
|Self Employed: 9.05% - 10.8%|
|Indiabulls||NBFC||₹15,00,000||₹30,00,00,000||1 Year||30 years||8.80%||₹10,000 to 1.00% + GST as applicable|
|IndusInd Bank||BANK||₹1,00,000||₹1,00,00,000||1 Year||30 years||8.00% - 16.00%||₹5,000 to 2% + GST as applicable|
|Kotak Mahindra Bank||BANK||₹5,00,000||₹10,00,00,000||5 years||20 years||8.90%||0 for online application; Offline application - Upto 1.25% + GST as applicable|
|LIC Housing||HFC||₹1,00,000||₹10,00,00,000||1 Year||30 years||9.15% - 10.10%||₹10,000 - ₹15,000 + GST as applicable|
|PNB Housing Finance Ltd.||HFC||₹50,000||₹ 75,00,000||1 Year||30 years||9.00% - 12.50%||1% + GST as applicable|
|Punjab National Bank||BANK||₹1,00,000||₹500,00,000||3 Months||30 years||8.70% - 9%||0.35% + GST as applicable (Min- ₹2,500/; Max- ₹15,000/)|
|Standard Chartered Bank||BANK||₹10,00,000||₹35,00,00,000||1 Year||25 years||9.31% - 9.85%||Up to 1% + GST as applicable|
|State Bank of India||BANK||₹5,00,000||₹200,00,000||5 years||30 years||9.10% - 9.45%||₹10,000 + 0.20% + GST as applicable|
|Tata Capital||NBFC||₹2,00,000||₹500,00,000||1 Year||30 years||8.8% - 11.25%||0.5% + GST as applicable|
|Reliance Home Finance Ltd.||HFC||₹1,00,000||₹10,00,00,000||1 Year||30 years||8.90%||Up to 2% + GST as applicable|
|Vastu Housing Finance Corporation Ltd.||HFC||₹500,000||₹50,00,000||1 Year||20 Years||12.5% - 15.5%||Up to 2% + GST as applicable|
No matter at what stage of life you are, the desire to own a house keeps dwelling the heart at all times. Especially if you are planning to have a first property, there is no reason why you shouldn’t take a home loan. Everything from renovating your house to building new one needs money, not necessarily everyone will have enough money for the same. This is when home loans come into play. It is essential to consider the interest rates at which these loans are offered, some banks offer low and attractive interest rates while others have too high and unaffordable rates. Rate of interest is calculated considering various factors by each bank. Let’s take a deep dive into this information.
There are mainly two types of interest rates namely, floating & fixed interest rates. Just as the name states, fixed interest rate has rate of interest locked throughout the life of the home loan, this cannot be changed at any time even if the market rate goes up or falls in future. The latter is the right opposite, where the rate is subject to market volatility.
Base Rate in any loan is a minimum rate of interest that is levied on the borrower. Reserve Bank of India sets this rate that every commercial bank has to maintain. Many a time commercial banks or NBFCs charge lower rate of interest to their customers to ease the loan business and attract more borrowers. But it destroys the clarity and transparency of the credit market as a whole. RBI sets this minimum rate of interest rate flooring to maintain clarity in credit market and restrict the credit to an extent.
Commercial banks can lift up the rate of interest if the current weather of the market demands that. But the base rate cannot be changed and banks have to maintain that minimum rate set by the central bank of the country.
As said that base rate is the minimum interest rate, changing in base rate always affects the home loan interest rates. If the base rate cuts down the interest rate for home loan lowers down too. Generally banks reset the interest in every three months according to the home loan agreement. For the existing customers cutting down the Base Rate will be good news whereas increase in Base Rate increases their interest payment in three months. Same happens with new borrowers. At the time of borrowing if RBI cuts down the BR then they get a chance to avail a home loan in much lower interest rate.
Stamp Duty is a form of tax. The home owner has to pay Stamp Duty within mentioned time period like other tax payments. It can be called as property tax as well. Stamp Duty payments can be used as the proof of property dealing.
The stamp duty charge is a variable factor. It varies from one state to another. For example in Mumbai the stamp duty charge is 5% of the total market value of the property agreement. The rate is different in other states. Stamp Duty does not consider the transaction value of the property. There are some of the factors that are important in calculating stamp duty charges. They are gender of the owner, age of the property (new or old), and nature of the property (agricultural or non-agricultural, residential or commercial) and so on.
When a customer is buying a house it is required to be registered properly under the court of property law. Paying the stamp duty ensures that the property deal is legal and the property is registered under the name of the correct owner. If the stamp duty is not paid then the owner might face devaluation of the property in future.
After paying the stamp duty the owner will get an official document. Within 4 months of receiving the documents the owner has to register the property under the court of property law. There is a fee of registration which is charged over the stamp duty. Generally the rate is 1% of either the agreement value or the market value. Among these two values whichever is more is considered as the registration fee.
There is a need of two photocopies and one printed copy of the original document along with ID proof of both the buyer and the seller and stamp copy proof. The buyer and the seller both are required to be present in front of the registrar of the Jurisdiction where the property is purchased. Once the verification and paper work will be done a unique serial number will be generated for the buyer and that will be his/her registration number for the property he / she own.
Unfortunately, things are not as straight forward as it looks to be. Most of the times, banks will be charging additional charges on the services rendered. Here is the glimpse of few such charges:
Irrespective of what was agreed as interest rates for a home loan, it is important that the borrower should be conducting periodical check of interest rate on home loan taken some time back. This is possible through various online applications called Loan repayment calculator. It also helps in clarifying, how much percentage of amounts is totally paid towards interest vs. loan amount and the total time required paying off the debt. This will help in understanding the interest rate moved over the period of time when the borrower started repayment of the loan.
a. In case of Fixed Rate Loan: All you need to do is to give the outstanding loan amount, interest rate and EMI amount, this will auto-calculate the total interest due and how much of your amount has moved towards the principal of the loan amount.
b. In case your of Floating Rate Loan: in this case, you need to share the same information as in the case of fixed rate loan like outstanding loan amount, interest rate (average over the period of time) and EMI amount. This information will be used to calculate the interest paid and due and how much is the total percentage of interest paid by the borrowers for total due amount.
Home loan interest-rates certainly have an influence on borrower’s loan amount eligibility. It’s because the interest constituent can raise the equated monthly-installment on a new home-loan. Such EMI is calculated at the time of sanctioning the loan. The information such as age of borrower, income of borrower, years in employment, previous tax returns, dependents count, dependents’ age, other sources of income, etc. are also used to calculate interest rates.
The six main factors that affects home loan apart from interest rates are explained below. These are just few factors from the whole big list. It is important to consider each of these while applying for a home loan.
There could be a time in everyone’s life when you decide you are done living in a rented house. Home loans are always available as a great option for this decision and can lend hands during tax payments too. Though the amount paid by the bank has to be repaid, it is worth spending this money on a property that is expected to appreciate at all times. Investment in land or property is always a safe and smart move!
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