As a matter of fact, the Reserve Bank of India (RBI) has maintained the status quo in its monetary policy meet on October 5, 2018. A relief in disguise as one would have to say, market watchers expected the central bank to hike policy rates amid weakening rupee and rising inflation due to the increase in crude oil prices.
Given the rising cost of funds in the recent times, banks would keep raising the MCLR, a benchmark based on which loans get priced. Any change in the MCLR impacts home loans the most as they are based on the loan pricing benchmark. Home loan interest rates all banks have risen at an average of 30-50 basis points in 2018, largely reversing the trend of rate easing existed for a good 4 years.
SBI Home Loan
State Bank of India (SBI), arguably the country’s largest lender, provides a home loan for as long as 30 years at an interest rate of 8.65%-9.20% per annum. The rates are decided on the basis of loan applied, the gender and profession of an individual. The bank can even go on to check the credit history and repayment potential of an applicant before setting the interest rates. As far as the rates on the basis of quantum of loan is concerned, they rise as the loan amount rises from up to ₹30 lakhs to ₹30-75 lakhs and above ₹75 lakhs
HDFC Home Loan
HDFC Home Loan Interest Rates, which range from 8.80%-9.55% per annum, are based on the loan amount, gender and profession of an individual. As the loan invariably runs for around 20-30 years, the bank would like to be absolutely certain of your repayment capability. And, for that, your income would be factored in. At the same time, the credit score and history would also be checked to see your repayment track.
ICICI Housing Loan
ICICI Bank offers a home loan at interest rates ranging from 8.85%-9.10% per annum. The rates vary according to the gender and profession of an individual, besides the amount of loan an applicant has applied for. Broadly speaking, ICICI housing loan interest rates for salaried, self-employed and women are 8.90%-9.05%, 8.95%-9.10% and 8.85%-9.05%, respectively, based on the quantum of finance.
Axis Bank Housing Loan
Axis Bank is another private lender offering you a home loan at interest rates of 8.70%, 8.85% and 8.95%, respectively, for loans of up to ₹30 lakhs, ₹30-75 lakhs and above ₹75 lakhs. While providing the loan, the bank will check your credit history to find your score as well as the repayment track of any previous or ongoing loan. If the score and repayment track are good, the rates can ease. In the event of your credit history in a sticky ground, the rates can go up.
Calculate the Impact of Home Loan Interest Rates via EMI Calculator
The effect of rates can be understood by checking the results of EMI calculator that takes into consideration the interest rates, tenure and amount of loan to present your repayment future. You can see both the EMI and total interest outgo over the course of a loan. This will only make you prepare better and plan out the finances for a smooth home loan journey.