Home loan interest rates and EMI in top 15 banks, in May 2019
Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in May 2019, to help you make the right choice
Several banks have not yet passed the benefit of the repo rate cut by the Reserve Bank of India (RBI) in the last month. The few banks that have done so, have reduced their home loan interest rates by 0.05% to 0.1%, although the repo rate was cut by 0.25%. However, with Akshaya Tritiya falling in the month of May, some banks have extended ‘zero processing fee’ offers, to attract the home buyers. As many housing finance companies (HFCs) are facing a liquidity crisis, with banks reluctant to allow easy money to them after the default by IL&FS, it may be better for home loan seekers to opt for private or PSU banks over the NBFCs, for a better deal.
The monsoon prediction for this financial year is not encouraging, as El Nino may cause rainfall deficit in many areas. A weak monsoon usually results in higher inflation and an increase in interest rates. However, for now, the interest rate trend over the next few weeks will largely depend on the results of the general election and the trade deal between the US and China. The RBI is expected to reveal its next move after the election result is declared and till then, no major change in home loan interest rates is likely.
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To make the selection of home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 8.55% per annum and the corresponding EMI for Rs one lakh is Rs 871. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 871 x 30 = Rs 26,100 per month (approximately), which would be the EMI for 20 years tenure.
Interest rate and processing charge on home loan by banks (with indicative EMI)
| Lender’s name | Floating interest rate (Per cent, per annum) | EMI per Rs one lakh (in Rs) | Processing fee |
| Axis Bank | 8.9-9.15 | 893-909 | Up to 1% of the loan amount, subject to a minimum of Rs 10,000. |
| Bank of Baroda | 8.7-9.7 | 881-945 | 100% waiver of processing charges, subject to recovery of out of pocket expenses of Rs 7,500 plus GST. |
| Bank of India | 8.75-9.65 | 884-942 | 0.25 % of the loan amount (Minimum of Rs 1,000 and Maximum of Rs 20,000). |
| *Processing charges waived till June 30, 2019. | |||
| Canara Bank | 8.75-8.95 | 884-897 | 0.50% (Minimum of Rs 1,500 and Maximum of Rs 10,000). |
| Central Bank | 8.55 | 871 | 0.50% of the loan amount, subject to a maximum of Rs 20,000. |
| Corporation Bank | 8.6-9.25 | 874-916 | Up to 0.50% of the loan amount (Maximum of Rs 50,000). |
| HDFC Ltd | 8.7-9.65 | 881-942 | For salaried individuals and self-employed professionals: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher. |
| Self-employed non-professionals: Up to 1.50% of the loan amount or Rs 4,500, whichever is higher. | |||
| (Taxes extra) | |||
| ICICI Bank | 9.05-9.25 | 903-916 | 0.5%, plus applicable taxes. |
| IOB | 8.65-8.9 | 877-893 | 0.5%, up to Rs 25,000. |
| PNB | 8.65-8.75 | 877-884 | 0.35% of the loan amount (Minimum of Rs 2,500 and maximum of Rs 15,000). |
| SBI | 8.6-9.3 | 874-919 | 0.35% of the loan amount plus taxes (Minimum of Rs 2,000 plus taxes and maximum of Rs 10,000 plus taxes). |
| *Processing fee waived till May 31, 2019. | |||
| Syndicate Bank | 8.6 | 874 | Minimum of Rs 500 to maximum of Rs 5,000. |
| UCO Bank | 8.7-8.95 | 881-897 | 0.50% of the loan amount (Minimum of Rs 1,500 and maximum of Rs 15,000). |
| United Bank | 8.6 | 874 | 0.59% (Minimum of Rs 1,180 and maximum of Rs 11,800). |
| Union Bank | 8.7-8.85 | 881-890 | 0.50% of the loan amount, subject to a maximum of Rs 15,000 (plus applicable taxes). |
Note:
The EMI is based on a loan amount of Rs one lakh for a tenure of 20 years.
Interest rates are based on the floating rate system. Rates may be subject to revision after a specified tenure, depending on the bank’s terms and conditions. The EMI range is indicative and is calculated, based on the interest rates given in the table. In an actual situation, it may include other charges and fees, as per the bank’s terms and conditions. The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.
Data taken from the respective bank’s websites, as on April 5, 2019.
Source:housing
