Nowadays when the rate of real estate properties is continuously increasing day by day and when having a home is becoming a dream for every
salaried person, home loans have performed a very vital part in completing one's dream of having a home. Every such man who is salaried or having a fixed income cannot think about buying a home by savings only. In
that condition borrowing a home loan is a very good option because it not just
brings you a home but it also directs you towards completion of loan
liability in the form of EMI (Equal Monthly Installments) which will also develop the habit of saving a part of your income.
What is exactly a Home Loan?
Home Loan simply means borrowing money from any bank or
financial company at an interest rate to purchase a home. But nowadays home
loans are not only limited to purchasing a home. Now the competition has increased
in Banking and financial industry. To beat the competition this sector has broadened
the term “Home Loan”. Now every bank has several specified options to cater the
varying needs of their customer.
According to customer's different needs, banks offer following
types of home loans :
1) Loan for Purchasing a Home
2) Loan for Home Repairing
3) Loan for Home construction
4) Loan for additional construction
5) Loan for purchasing land
6) Loan for Home furnishing and consumer durables
Beyond this, some bank also offers additional benefits if
you are taking bank loan from them . These are:
1) Customer Privileges: If you are an existing home loan
customer you can avail other loans such as Car loan, Two Wheeler Loan, Personal
Loan at very low interest rates.
2) Term assurance plans: Insurance Company also provides term assurance plan, in which your loan term period is covered
under a plan which is a guarantee of your loan payment in an assured period in
case of any mishappening with insured.
Home Loan Interest Rate: Banks and financial company charge
interest over the loan amount. Interest rates are different for different types
of loans. The rate of different types of loans such as a car loan, education
loan, home loan, personal loan basically depends on the amount of loan. Also
different banks charge different interest rates for same type of loan, although the difference would not be too much. Due to increasing
competition in the banking sector, customers get the benefit in the form customer
support, value to customer, financial transparency, good treatment and some
other privileges benefits.
Banks fixed their interest rates which is not less than
their base rate. Now if we are talking about base rate then it is the interest
rate decided by a bank that the bank cannot lend loans below this interest
rate. Banks fix base rate by choosing benchmark but at the same time it has
to be transparent.
Every bank has its own base rate in which banks add
administrative cost and margin to fix interest rates for tenure of time.
Banks have two ways to charge interest one is Fixed Interest rate and other is Floating Interest loans.
Fixed Interest Rate: Fixed interest rates are fixed over the tenure and are not affected by changing policies.
Floating Interest Rate: Floating Interest rates are that
interest rates which floats according to changing policies.
Banks fixed interest rates are oftenly higher than floating
interest rates.
Here are the some major bank interest rates:
SBI Home Loan
Loan
Amount
|
Interest
Rate
|
Base
Rate : 9.75%
|
|
Upto
Rs. 30 lacs
|
10.00%
pa
|
Above
Rs. 30 lacs
|
10.15%
pa
|
ICICI Home Loan
Loan Amount
|
Scheme I
|
Scheme
II
|
Scheme
III
|
Upto
Rs. 30 lacs
|
10.25% (Fixed 1 yr)
|
10.25% (Fixed 2yrs)
|
10.50% (Fixed 3yrs)
then 10.25% |
From
Rs. 30 lacs to 75 lacs
|
10.50% (Fixed 1 yr)
|
10.50% (Fixed 2yrs)
|
10.75% (Fixed 3yrs)
then 10.50% |
Above
75 lacs
|
10.50% (Fixed 1 yr)
|
10.50% (Fixed 2yrs)
|
10.75% (Fixed 3yrs)
then 10.50% |
HDFC Home Loan
Loan Amount
|
Scheme I
|
Scheme
II
|
Upto and
including Rs. 30 lacs
|
10.75% (Upto 10Lacs) (Fixed for
10yrs), then 11%
|
10.25%
|
Above
Rs. 30 lacs to 75 lacs
|
11% (Upto 10Lacs) (Fixed for 10yrs), then 11.25%
|
10.50%
|
Above
75 lacs
|
11% (Upto 10Lacs) (Fixed for
10yrs), then 11.25%
|
10.50%
|
This data has been provided only for informational and advisory purpose.
Good Luck...
