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Home Loans in India

 

Home Loans in India              
Home Loans in India are provided by a number of banks and financial insitutitions. The table below illustrates the key terms, rates of interest and conditions of some of these financial institutions. 
                 
Bank / Home Finance Companies Interest rates Processing charges Prepayment charges Charges for loan transfer Late payment penalties Special Conditions
  < 30 Lakh 30-75 Lakh Above 75 Lakh          
                 
State Bank of India       0.35% of the loan amount subject to a minimum of Rs 2000 and maximum of Rs 10000 No prepayment penalties for floating rate loans Switchover – 0.30% of loan outstanding, min Rs 2000 and max Rs 25,000  For Loans above Rs.25000/- 2% on overdue amount  Interest charges on Daily Reducing Balance
Salaried      
Women 8.30% 8.3-8.35% 8.4-8.45%
Other 8.35% 8.35-8.4% 8.45-8.5%
Self Employed      
Women 8.40% 8.5-8.55% 8.5-8.55%
Other 8.45% 8.55-8.6% 8.55-8.6%
                 
ICICI Bank       0.50% – 1.00% of the loan amount or Rs. 1500/- whichever is higher 2% plus taxes on full repayment for Home Loans with fixed rate of interest. To Floating – 0.5% of the principal outstanding plus applicable taxes
Life time fixed to floating 1.75% of the principal outstanding
2% per month Home OD : 1.5% of the outstanding amount subject to minimum of Rs. 500/- & Maximum of Rs.5000/- ICICI Bank also has fixed rate loans available where the rate remains fixed for 24- 120 months and then converts to  a floating rate. Interest rates range from 8.7% to 8.95% based on loan value and category of customer.
Completely fixed rate loans are also available with rates ranging between 9.7% – 10.1%
Salaried      
Women 8.35% 8.65% 8.7% for loans upto 5 crore
8.80% for loans greater than 5 crore
Other 8.40% 8.70% 8.75% for loans upto 5 crore
8.85% for loans greater than 5 crore
Self Employed      
Women 8.50% 8.65% 8.7% for loans upto 5 crore
8.80% for loans greater than 5 crore
Other 8.55% 8.70% 8.75% for loans upto 5 crore
8.85% for loans greater than 5 crore
                 
Axis Bank       Up to 1% of the Loan amount subject to minimum of Rs.10,000/- 2% of the principal outstanding for fixed rate loans only 0.5% – 1% on outstanding principal with minimum of Rs 10,000
Higher rate to Lower Rate – 0.50%-2% on the Drawing Power or min Rs 10000
@24 % per annum, 2% per month Super Saver Home loans allows a person to reduce their home loan payments by parking surplus funds in an account with Axis bank.  Any amount deposited in the SuperSaver account will reduce the principal outstanding and the customer will be charged interest only on net principal outstanding. Prepayments can be parked in the account with the added benefit of withdrawing it if needed.
Salaried MCLR + 0.20% MCLR + 0.50% MCLR + 0.55%
Others MCLR + 0.25% MCLR + 0.55% MCLR + 0.6%
Super Saver Home loan MCLR +1.1% for loans of minimum Rs 50 Lakh No prepayment penalties 
                 
HDFC Bank       Up to 0.50% of the loan amount or ₹ 3,000 whichever is higher, plus applicable taxes No Pre Payment charges for individuals, but 2% on outstanding amount is charged for those who have applied with a company or firm as a co-applicant.
If fixed rate loans are repaid through refinance from any Bank / HFC / NBFC or Financial Institution, a 2% penalty is charged.
A charge ranging from  0.50% of the Principal Outstanding or  Rs. 50000 upto  1.75% of the Principal Outstanding based on whether converting to lower interest loan or from Variable Rate to Fixed Rate or vice versa. Interest at 24% per annum HDFC Bank also has fixed rate loans available where the rate remains fixed for 24 months and then converts to  a floating rate. Interest rates range from 8.35% to 8.6% based on loan value and category of customer.
Salaried      
Women 8.35% 8.40%
Other 8.40% 8.45%
Self Employed      
Women 8.45% 8.55%
Other 8.50% 8.60%
                 
Canara Bank       A processing fee of 0.50% (Min Rs.1500/- and Max. Rs.10,000/-) is charged No prepayment penalties for floating rate loans and 2% on fixed rate loans   Penal interest collected. Interest rate of 8.85% – 9.05% charged for home loans for 3rd and subsequent dwelling units
       
Women 8.35% 8.45% 8.50%
Other 8.40% 8.50% 8.55%
                 
Punjab National Bank                
Women MCLR+0.20% MCLR+0.25% Upto Rs.300 lakh – 0.50% of loan amount Maximum Rs.20000/-
For above – Rs.50000/-
No prepayment penalties for floating rate loans  A charge of 2% is levied in case of shifting of Housing Loan A/c by takeover to other banks/ housing finance institutions. 2% per month on overdue payment Interest is based on daily reducing balance
Others MCLR+0.25% MCLR+0.30%
Central Govt Employees MCLR+0.20% MCLR+0.25%
                 
Bank of Baroda One year MCLR – MCLR+ 1.00% based on risk profile of applicant 0.25% over Normal Home Loan Rate 0.25%-0.5% of loan amount (min of Rs 7500 upto Rs 20,000) No prepayment charges Rs. 7500/- upfront for takeover of earlier home loan 2% over regular rate on the irregular amount for the period of irregularity Interest is based on daily reducing balance
 
 
 
                 
PNB Housing Finance                
Salaried 8.60%-10.75% 1% of the loan applied 2% of the principal outstanding for fixed rate loans. If prepayment of loan is by own source and not refinance, no fees 0.50% – 0.75% of principal outstanding  based on whether converting to lower interest loan or from Variable Rate to Fixed Rate or vice versa 2% per month on overdue payment PNB also offers 1-10 year fixed rate loans ranging from 8.35% – 11% based on category of borrower and amount of loan.
Self Employed Professionals 8.60%-10.75%
Self Employed Non Professionals 8.75%-11.00%
                 
HDFC Limited       Up to 0.50% of the loan amount or ₹ 3,000 whichever is higher No Pre Payment charges for individuals, but 2% on outstanding amount is charged for non individuals as a co-applicant.
If fixed rate loans are repaid through refinance from any Financial Institution, 2% penalty.
A charge ranging from  0.50% of the Principal Outstanding or  Rs. 50000 upto  1.75% of the Principal Outstanding based on whether converting to lower interest loan or from Variable Rate to Fixed Rate or vice versa. On delayed payment  the customer is liable to pay additional interest up to 24% per annum. HDFC offers 2/3-year fixed rate loans at rates ranging from 8.35% to 8.95%
Women 8.35% to 8.85% 8.40% to 8.90%
Other 8.40% to 8.90% 8.45% to 8.95%
                 
Indiabulls Housing                
  8.35% to 9.75% based on customer category 8.70% to 10.50% upto Rs 300 lakh
8.80% to 11.25% beyond Rs 300 lakh
Rs 10,000 or 0.5% -1% of property value. No charges for prepayment of home loan for individuals
Prepayment / Foreclosure fees of 2% for non individuals and those on fixed rates
Rs 2500 for loan transfer charges from another bank.
Rs 5,000-10,000 +0.25% to 0.50% on the principal outstanding if changing interest rates
24% per Annum of Outstanding EMI 2 Year-fixed rate loans also available @ rates 8.95% to 11.5%
LIC Housing                
  8.35% – 8.80% Government Employees Rs 1000, Women- Rs.2500, Rs.5000 For Others No prepayment charges     2/3/5 year fixed rate loans also available at rates ranging from 9% -9.9%
                 
PRADHAN MANTRI AWAS YOJANA              
This is a special scheme by the Government of India to expand housing credit for affordable housing.           
The beneficiary family should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India.      
There are 4 schemes for different income groups with special subsidies.             
                 
CREDIT LINKED SUBSIDY SCHEME- EWS / LIG              
This is a scheme for  LIG(Low Income Group) & EWS (Economically Weaker Sections) groups          
Income levels should range from below Rs 3 Lakh to Rs 6 Lakh            
The interest subsidy is @6.50% for 15 years or actual tenor of the loan            
Incase the loan tenor increases past 20 years, maximum subsidy eligible is Rs. 2.20 lakhs for EWS and Rs. 2.67 lacs for LIG        
                 
CREDIT LINKED SUBSIDY SCHEME- MIG                
This provides interest rate subsidy for housing Loan beneficiaries belonging to Middle Income Groups (CLSS-MIG)        
Income levels should range between  6,00,001 to Rs. 12 lacs for MIG-I and Rs 12,00,001 to Rs. 18 lacs for MIG-II        
The credit linked subsidy @ 4% will be available for loan amount up to Rs. 9 lacs in case of MIG-I and @3% for Rs 12 lacs in case of MIG-II.      
Maximum subsidy eligible under CLSS-MIG(I) – Rs. 2.35 lakhs             
Maximum subsidy eligible under CLSS-MIG(II) – Rs. 2.30 lakhs             
                 
Researched by                
Neena Shastry                
Dilzer Consultants Pvt Ltd                
                 
                 
                 
                 
                 
                 
                 

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