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Comparing home loan interest rates for India’s top three lenders


Comparing home loan interest rates for India’s top three lenders

ICICI Bank, HDFC Bank and SBI (State Bank of India) are widely regarded as the top three lenders in the country, particularly in case of home loans. The MCLR (marginal cost of funds based lending rates) was hiked by all three banking giants in June 2018. EMIs have also increased for home loans as a result.

Here’s looking at the current interest rates charged by these banks on home loans up to Rs. 30 lakh which is one of the biggest segments in the home loan sector. Salaried female borrowers currently get loans up to Rs. 30 lakh at 8.45-8.55% at State Bank of India. The rates stand between 8.5-8.6% for all other borrowers. For non-salaried borrowers, the interest rates are 8.6-8.7% for home loans up to Rs. 30 lakh in case of female borrowers while they are between 8.65-8.75% for all other borrowers. The interest rate as per SBI, is dependent on the loan-to-value or LTV ratio which is the ratio of the loan amount vis-à-vis the value of the property. The higher this ratio, the higher the monthly EMI and down payment will be lower. 0.35% is the processing fee for home loans at SBI with Rs. 2, 000 being the minimum amount and Rs. 10, 000 being the maximum amount.

HDFC Bank offers 8.5% as interest rates on home loans for salaried borrowers who are female and 8.55% for other borrowers. 8.55% is also charged in case of self-employed female borrowers and 8.6% in case of other borrowers. The rates remain variable according to HDFC and are tied to the RPLR (Retail Prime Lending Rate) of the bank.

On the other hand, ICICI Bank has 8.55% as the home loan interest rate for women borrowers who are salaried and for other salaried borrowers, 8.6% is the interest rate. For self-employed female borrowers, 8.7% is the interest rate while this is 8.75% in case of other borrowers in the self-employed category. Processing fees of 0.5% of the loan amount and service taxes applicable are charged by ICICI Bank.



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