Home Loans in India
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% |
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| Salaried | ||||||||
| Women | 8.35% | 8.65% | 8.7% for loans upto 5 crore 8.80% for loans greater than 5 crore |
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| Other | 8.40% | 8.70% | 8.75% for loans upto 5 crore 8.85% for loans greater than 5 crore |
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| Self Employed | ||||||||
| Women | 8.50% | 8.65% | 8.7% for loans upto 5 crore 8.80% for loans greater than 5 crore |
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| Other | 8.55% | 8.70% | 8.75% for loans upto 5 crore 8.85% for loans greater than 5 crore |
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| 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