5 Vital Tips on Home Loans

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5 Vital Tips on Home Loans

1. To increase your loan eligibility, combine your income with that of your spouse, children or

parents

2. Always negotiate - the first home loan interest rate quoted is never the final rate

3. Before paying the loan processing fee request lender for preliminary check on the property

4. Buy Loan Protector Life Insurance - ensure your family can use the house if you are not alive

5. Immediate disbursement get best rates ± talk to home loan providers when you are close to

finalizing your property

Basics of Home Loans in India

y What is a home loan?

o Amount of home loan

o Home loan interest rates

o Salient features of home loans

o Down payment

y Repayment of home loan

y Fees associated with home loans

o Before Disbursal

Processing Fee Legal and Technical Charge

Stamp Duty

y Post Disbursal

o Prepayment and Foreclosure Charges

o Duplicate Statement Charges

o Delayed Payment and Cheque Bounce Charges

y Insuring your home loan

o Home Loan Insurance

o Home Insurance

y Tax benefits of home loans in India

o Interest paid on home loan

o Principal repayment of home loan

o Some Key points on taxation



What is a Home Loan?

A home loan is a loan taken for buying or constructing a home or to make improvements to a residential

property. You can get a loan from from banks and registered housing finance companies.

Your home loan is secured against the property that you buy. This means that in case you are unable to

repay the loan, the lending bank will have the right to take possession of your home.

You need to be familiar with two terms relating to home loans:

1. Principal amount:

This is the total loan amount that the lender gives you

2. Interest rate:

This is the cost of the loan that you pay to the lender

The amount of the loan, i.e. the principal, that you can avail of is decided by the lender based

on:

o Your income

o Your loan repayment capacity

o The house (property) you wish to purchase

As a borrower, you can choose the type of interest rate that you will pay. You can either pay:

1. Fixed rate: Where the interest rate remains fixed during the life of the loan

2. Floating rate: Where the interest rate floats or changes depending upon market interest

rates

Additionally, you can also chose the loan repayment period that you are comfortable with.

(Please refer to Selecting The Right Home Loan Lender and Home Loan Process for more details)

Some salient features of home loans are:

o Loans are available for salaried, self employed and Non Resident Indians (NRIs)

o Loans are available for builder flats, under construction properties, and residential plot

with construction due to start

o Flexible repayment options, ranging from 12 months ± 300 months (1 year ± 25 years)

o Repayment with easy Equated Monthly Installments (EMI)



o Loan transfer facility in case you want to change your lender

o Pre-payment facility in case you want to pay back more of your loan

(Please refer to Selecting The Right Home Loan Lender and Home Loan Process for more details)

Do I need to pay any cash upfront, or will the lender loan the entire amount?

Yes, you will need to put in a down payment of upto 15%-20% of the value of the property upfront (figure

can vary by lender). Home loan lenders usually do not finance the total cost of the property.

Repayment of home loan

You can choose a repayment period from 12 months - 300 months (1 year - 25 years) for your home loan

in India. During this period you will be making a fixed monthly payment to the lender . This payment is

called EMI ± Equated Monthly Installment. Please note that usually post-dated cheques of the home loan

EMI amount are taken upfront, at the time of the loan grant .

This EMI is a fixed amount that you pay on a monthly basis and stays constant during the life of the loan

(unless you change the tenure, i.e. length of the loan). However, the home loan interest and principal

component of the EMI change on a monthly basis.

Fees associated with home loans

There are charges and fees to be paid both before the loan is disbursed to you, as well as during the life

of the home loan.

Before the disbursal:

a. Processing Fee

Most lenders would take a cheque of the home loan processing fee along with the application form. This

fee is mostly non-refundable. So be prepared to pay up to Rs 5,000 as processing fee at the beginning of

the process.

b. Legal and Technical Charge

Many lenders recover the costs that they incur for legal and technical verification of the property . These

are known as legal and technical charges.

c. Stamp Duty

You will have to pay the stamp duty to the Government on your home purchase transaction. Many banks

also recover the stamp duty paid on the registration of the loan agreement.



Post-disbursal:

a. Prepayment and Foreclosure Charges

Prepayment Charge is the penalty paid by the borrower for making extra payments beyond the

repayment schedule. Usually, this is waived off by most lenders. Foreclosure Charges are applicable when you repay the entire amount of the home loan before the actual

tenure. These days banks levy this charge only when you are doing a home loan balance transfer to

another home loan lender and not when foreclosing with your own funds.

b. Duplicate Statement Charges

Every year, the lender sends you a statement detailing the amount of money that you have paid during

the year towards your home loan. This amount is broken into interest paid and principal repayments. This

is done for your annual tax filing purposes. If you lose this statement, the lender might charge you to

issue a duplicate statement.

c. Delayed Payment and Cheque Bounce charges

Delayed Payment Charges also known as the late payment charges are levied if you make the payment

after the due date. You might also be subject to cheque bounce charges in case one of your post-dated

cheque bounces because of lack of funds.

Home loan insurance

There are two types of home insurance that you must get.

Home Loan Insurance

When you take a home loan, you owe the lender money. If you are not able to repay then the lender will

take away your home. So, in a situation where you lose your life and no surviving member of the family

can repay the loan, your home may be taken away by the lender . You can protect yourself and your

family by buying a Home Loan Insurance, also know as Loan Cover Term Insurance.

If something happens to you, you can be rest assured that with this insurance your home loan

repayment will not be at risk and your home will not be taken away.

For example, say you took a home loan of Rs 10 lakh. In the next two years, you have paid back Rs 2

lakh of the principal amount, and Rs 8 lakh remains to paid. However, at this point you meet with an

accident, and no one can meet the EMI payments due to the lender . In this scenario, if you have

the housing loan insurance, the insurer will repay the remaining amount of Rs 8 lakh on your behalf . If



you did not have this insurance, your home might be repossessed and your survivors might not have a

home to live in.

Home Insurance

Your home is your most valuable asset and the result of your life's hard work and savings. You must

protect it against natural disasters such as floods or earthquakes, or against fire. Therefore, it is important

to get home insurance for building and contents so that you can at least recover the replacement cost of

your home or your belonging in the event that something happens to your house.

Tax benefits of home loans in India

You can avail tax benefits for both interest as well as the principal component of your home loan.

Interest paid on the home loan

As per Section 24 of the Income Tax Act, 1961 a deduction up to Rs. 150,000 towards the total interest

payable on the home loan towards purchase / construction of house property can be claimed. The

interest payable for the pre-acquisition or pre-construction period would be deductible in five equal annual

installments starting from the year in which the house has been acquired or constructed. This deduction is

allowed only for self-occupied property.

The interest towards home loan taken for construction, repairs, renewal or reconstruction of existing

house property is also eligible for deduction under Section 24.

Principal repayment of the home loan

As per Section 80C of the Income Tax Act, 1961 the principal repayment up to Rs. 100,000 on your

home loan for purchase or construction of a residential house property will be allowed as a deduction

from the gross total income.

Some key points on taxation:

y Tax benefit is not available if you do not have possession of the house.

y Two or more people who have taken a joint home loan in India can both take advantage of the tax

benefit in the ratio of the EMI payment that they are making.

y You can take advantage of both the home loan tax benefits and HRA benefit if you are living in a

rented accommodation and not in your own house.

y This tax benefit is not available for loan against existing property or loan taken to purchase land.



Home Loans in India - Frequently Asked Questions(FAQs)

Eligibility FAQs

1. I bought a property last month. Can I get a home loan for the same right now ?

2. I intend to co-own, the property with my brother, sister, father, mother . Will I be eligible for a loan?

3. Can a single woman get a loan ?

4. Can I get a home loan for an apartment that I want to purchase in New York ?

5. Do professionals have special eligibility norms?

6. Can I get two home loans against two different properties ?

7. Is there any loan provision for purchase of land ?

8. Can a NRI (Non Resident Indian) avail of a housing loan?

Some Important Terms

9. What is a ³pre-approved property´?

10. What is Pre EMI?

11. What is Floor Space Index ?

Rates & Charges FAQs

12. What is a fixed rate home loan ? When should one opt for a fixed rate home loan ?

13. What is a floating rate home loan ? When should one opt for a floating rate home loan ?

14. Can I convert my loan from fixed rate loan to floating rate loan & vice versa?

15. Can the Fixed Rate of Interest change during the loan repayment?

16. What happens to processing/administrative fees if I don't avail of the disbursement?

17. What is the difference between monthly rest & annual rest?

18. What are the charges other than interest that are levied by home loan lenders?

Home Loan Tax Benefits FAQs

19. What are the tax benefits that I can avail of for repaying a home loan ?

20. Can I take advantage of tax benefits from a home loan as well as claim HRA?

21. I have a home loan in which I am a co-applicant. However, the total EMI amount is paid by me.

What is the total income tax exemption that I can avail of?

22. I have two home loans on two different properties. Can I get tax rebate under sec 80 C on both?



Post Sanction FAQs

23. Is the EMI amount or the tenure of the loan affected if the value of the underlying property falls ?

24. Is it necessary to get property insurance, while availing a home loan ?

25. Can I sell the property, even when the home loan is outstanding ?

26. Can I increase or decrease the amount of the loan even after it has been sanctioned ?

27. Is it advisable to transfer a home loan from my existing provider?

Q1. I bought a property last month. Can I get a home loan for the same right now ?

Most lenders would consider any property bought during the last 3 -6 months as a regular home loan

application. You would be eligible for the same rates and income tax benefits as any other home loan .

However, if you delay and the property purchase becomes more than 6 months old it will be treated as

Loan Against Property. The rates for the same are higher and there would be no tax benefits as well.

Top

Q2. I intend to co-own, the property with my brother, sister, father, mother. Will I be eligible

for a loan?

You would not be eligible for a loan as most home loan lenders allow only immediate relatives to co-own

a property. This means that a parents-son combination and a husband-wife combination is only allowed.

The reason for this restriction is that if some dispute arises between the joint borrowers, their incomes

might not be pooled any longer and there might be a problem in repaying the loan to the bank.

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Q3. Can a single woman get a loan ?

Yes, a single woman can get a loan. Till a few years back, banks hesitated to give loans to single women

fearing loss of income after marriage. With double income families becoming the norm rather than

exception, lenders now are lending to single women as well. Many lenders also have special schemes for

women offering them a discount up to 0.25%.

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Q4. Can I get a home loan for an apartment that I want to purchase in New York ?

No, currently no home loan lender provides loan for purchasing properties abroad. The primary reason

being operational difficulties in property verification, disbursement and different legal structure governing

both home loan and repossession terms.



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Q5. Do professionals have special eligibility norms?

Most home loan lenders offer special privileges to self-employed professionals. They recognize the fact

that in such cases, income is generally under stated and the earning potential of such individuals is higher that what has been disclosed. EveryHousing Finance Institution (HFI) has its own conditions regarding

the type of professionals they would cater to. The HFI also decides on the qualifications required for such

professionals to qualify for the relaxed norms for loan eligibility calculations.

Top

Q6. Can I get two home loans against two different properties ?

Yes, you can have as many loans against different properties. The only criteria being that you should be

able to repay all the EMIs every month.

Top

Q7. Is there any loan provision for purchase of land ?

y Yes, loan for land purchase is available as long as it is for residential purposes only.

y Many mortgage lenders like HDFC and State Bank of India offer this loan. You can get up to 85%

of the purchase amount based on your credit profile and paying capacity.

y You get no tax breaks if you take a loan to buy a plot of land. But, if you take a loan for

construction, that means a loan to build a house on that plot of land, then you can get a tax break.

y In such a case, the tax benefits are available on both portions of the loan the one to purchase the

plot and the one taken to construct the house thereon.

y Please note that the benefits under Section 80C and Section 24 can be availed only when the

construction of the house is complete.

Top

Q8. Can a NRI (Non Resident Indian) avail of a housing loan?

Yes, Non Resident Indians can avail of a NRI housing loan to buy a property in India. However, the loan

disbursement process as well as the terms & conditions for a loan taken by a NRI are different than

regular home loans granted to Indian residents.

Top



Q9. What is a ³pre-approved property´?

Many large builders like DLF, Unitech and Hiranandani get their projects ³pre-approved´ by specific home

loan lenders. The lender examines the legal documents of the title of that project, the stage of

construction as well as the builder's track record to complete the project in time. It then declares all

properties in the project to be ³pre-approved´. You do not need to go for legal and technical checks in

case of a ³pre-approved´ property.

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Q10. What is Pre EMI?

You've chosen a property that's yet under construction. So the lender makes the disbursement in parts

based on the progress of the construction of your property. However till the housing loan is fully disbursed

you have to pay simple interest at the rate you have agreed upon with the lender . This is known as the

Pre EMI. And from the month following in which the full disbursement is made you will start paying your

EMI.

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Q11. What is Floor Space Index ?

Floor Space Index refers to the ratio of the built up area of a property to the area of the land on which it is

built. An FSI of 60% would mean that the total built up area of the building can be equal to only 60% of

the area of the land on which it is being built . There are FSI specifications released by the relevant

municipal body or development authority for all construction in its area . It is also known as Floor Area

Ratio (FAR).

Top

Q12. What is a fixed rate home loan ?When should one opt for a fixed rate home loan ?

A fixed rate home loan is one where the interest rate on home loans charged by the lender is constant

over the tenure of the loan. It is advisable to go in for a fixed rate only if you feel that the rate of interest

prevailing in the market have touched rock bottom and the rates can only move upwards . Here are the

latest offers on a10 year fixed rate home loan and

20 year fixed rate home loan from the leading banks

and housing finance companies in India.

Top



Q13. What is a floating rate home loan ? When should one opt for a floating rate home loan ?

A floating rate home loan is one where the home loan interest rate charged by the lender keeps changing

with respect to the rates in the market over the tenure of the loan. Typically, the rate charged is on the

basis of their cost of funds and the prevailing market rates. These rates change periodically. Accordingly

the tenure increases or decreases or alternatively the EMI increases or decreases based on whether the

rates move upwards or downwards. Every home loan lender decides whether to change the rate of

interest or change the tenure at the time of sanction. It is advisable to go in for the floating rate if you feel

that the interest rates have reached its peak and can only go downwards. Here are the latest offers on

a 10 year floating rate home loan and 20 year floating rate home loan from the leading banks and housing

finance companies in India.

Top

Q14. Can I convert my loan from fixed rate loan to floating rate loan & vice versa?

Yes, you can convert floating rate home loan into a fixed rate one with no extra charges. However, to

convert a fixed rate product to a variable rate product, most banks will charge a small fee. The swap can

be done any number of times and at any point of time.

Top

Q15. Can the Fixed Rate of Interest change during the loan repayment?

The Fixed Rate of Interest ideally remains fixed over the tenure of the loan . This rate does not change

after the final disbursement has been made. It is ideally suited for situations where you expect the rates of

interest to go up in the future and this fluctuation in the rates does not affect you adversely . In cases

where the disbursement is spread out over a period of time and the rates might have changed in the

interim. The rate of interest would remain fixed at the final weighted average rate at which the loan was

disbursed.

Nowadays, many lenders are reserving the option of changing the rate on a fixed rate home loan after 3

or 5 years. So please read the fine print before you sign up for a fixed rate home loan.

Top

Q16. What happens to processing/administrative fees if I don't avail of the disbursement?

Most lenders do not refund the fees that you pay to them if you cancel the loan after taking the offer letter

from them. However, there are few Govt. owned banks which do offer full or partial refund . Almost all the

lenders refund the money in case the loan is not sanctioned.

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Q17. What is the difference between monthly rest & annual rest?

In a monthly rest, the interest is calculated on the outstanding principal at the beginning of every month .

Once the interest is calculated at the rate applicable to you for the month it is deducted from the EMI

received during the month.

Annual rest works on the same principal only the interest is calculated on your outstanding principal at the

beginning of every year . It is also commonly known as ³Yearly Reducing Balance´.

Monthly reducing balance is a better option all other things being equal as you get immediate credit for

repayment and the interest component keeps reducing almost immediately on a monthly basis.

Top

Q18. What are the charges other than interest that are levied by home loan lenders ?

Almost all lenders charge certain administrative or processing fees apart from interest for providing

a home loan in India . You must compare all these charges as well before signing on to a home loan

contract.

y Legal fees - payable to the lender or to the legal consultants of the lender

y Technical or Valuation charges - payable to the lender or to his technical consultant.

y Stamp duty on creation of mortgage - some banks charge this fee whilst other banks normally

just have a clause that requires this to be paid in the event the state government actually charges

this amount. The escape route for non-payment of this duty are progressively being eliminated

and the fact that the consumer carries the liability to pay this duty in the future if demanded by the

state government along with interest and penalties in the future. So, this should not really be used

by a consumer to eliminate a lender just because he is paying this stamp duty to the government.

y Prepayment Charges - This is the biggest charge that most consumers miss taking into account.

A loan can be prepaid either in part or in full at any given point of time. You can also prepay a

loan even when it is only partly disbursed. However, most banks have an upper limit on the

number of times a person can prepay his loan in a year as well as on the minimum amount you

can prepay each time. Until recently, banks charged a penalty for part or full prepayment.

Increased competition has forced most banks to allow repayment without any charges if it is

funded from own sources. In case the borrower, is transferring the loan to another lender he will

need to pay the full charges.

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Q19. What are the tax benefits that I can avail of for repaying a home loan ?

You will be eligible to claim both the interest and principal components of your repayment during the year .

y Interest can be claimed as a deduction under Section 24. You can claim up to Rs. 150,000 or the

actual interest repaid whichever is lower . (You can claim this interest only when you are in

possession of the house)

y Principal can be claimed up to the maximum of Rs. 100,000 under Section 80C. This is subject to

the maximum level of Rs 100,000 across all 80C investments.

y You will need to show the statement provided by the lender showing the repayment for the year

as well as the interest & principal components of the same.

Top

Q20. Can I take advantage of tax benefits from a home loan as well as claim House RentAllowance (HRA) ?

If you took a home loan and are still living in a rented place, you will be entitled to:

1. Tax benefit on principal repayment under Section 80C

2. Tax benefit on interest payment under Section 24

3. HRA benefit

Of course, you can claim tax benefits on the home loan only if your home is ready to live in during that

financial year . Once the construction on your home is complete, the HRA benefit stops. If you took a

home loan, got possession of the house, have rented it out and stay in a rented accommodation, you will

be entitled to all the three benefits mentioned above. However, in this case, the rent you receive would be

considered as your taxable income.

Top

Q21. I have a home loan in which I am a co-applicant. However, the total EMI amount is paid

by me.What is the total income tax exemption that I can avail of ?

Yes, you can claim income tax exemption if you are a co applicant in a housing loanas long as you are

also the owner or co owner of the property in question. If you are only person repaying the loan, you can

claim the entire tax benefit for yourself (provided you are an owner or co-owner). You should enter into a

simple agreement with the other borrowers stating that you will be repaying the entire loan . If you are

paying part of the EMI, you will get tax benefits in the proportion to your share in the loan.

Top



Q22. I have two housing loans on two different properties. Can I get tax rebate under sec 80

C of both the loans?

Yes, you can get the 80C benefit on both loans. However, the total amount that you will be entitled to will

be a total of Rs 100,000 across both the homes.

The interest paid on a home loan is not directly deductible from your salary income for either of your flat

loans. Income from house property will be calculated for each flat you own. If either of theses

calculations shows a loss, this loss can be set off against your income from other heads.

As for Section 24 deduction, on your self occupied house you can take advantage of interest payments

up to Rs.1,50,000. For the other property, you can claim actual interest repaid, there is no limit for the

same.

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Q23. Is the EMI amount or the tenure of the loan affected if the value of the underlying

property falls ?

Fluctuating value of the property does not affect your EMI or your home loan liability. If you fail to repay

your home loan you will be damaging your credit profile and any chances of getting a loan in the future. In

such a case, where you want to dispose of the property because of loss in value ± you will be much better

off if you prepay your home loan and then sell the property.

Top

Q24. Is it necessary to get property insurance, while availing a home loan ?

Most lenders do not insist on a property insurance when disbursing a loan. However, it is strongly advised

to buy an insurance as your home would be one of your most valuable assets. The home insurance rates

are very affordable especially when bought for a long duration say 10 years. It would cost close to Rs. 50

per lakh of property value per year .

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Q25. Can I sell the property, even when the home loan is outstanding ?

Yes, you can sell the property with the consent of the lender . This consent letter usually mentions the

amount at which the home loan can be considered fully paid off . This amount is inclusive of prepayment

charges as applicable and calculated at a future date to give you enough time to find a buyer . Based on

this letter, you can negotiate with potential buyers.



If the buyer, wants to take a loan to purchase the property the process is much simpler if he approaches

the same lender . Then the lender does not need to release the title papers to another lender before

getting the payment.

If the buyer wants to make an outright payment- he can make the payment out to the bank directly basedon the consent letter . And the balance amount is paid out to you. The property papers will be released

only after the bank has recovered the entire amount including prepayment charges.

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Q26. Can I increase or decrease the amount of the loan even after it has been sanctioned ?

Yes, the change in amount can be done at any point before disbursement . Any increase in loan amount

will however be subject to the eligibility conditions. The bank might also charge you excess fees on

requesting an increase in the loan amount. The bank is not obliged to return excess fees paid in case you

are requesting for a reduction in the loan amount.

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Q27. Is it advisable to transfer a home loan from my existing provider.

Please be clear on why you wish to change your loan provider?

y Is it because you want a better interest rate and change in EMI ?

y Is it because of service ?

y Or, any other reason ?

There is usually a pre-payment penalty for the loan, so please understand that you will lose some money

when you transfer out of your present lender . Additionally, the new lender might also charge you a loan

processing fee. So, you might end up paying two types of fees during this transfer . Ask both the lenders

what the fee will be.

Make sure that you do the calculations of whether you will really save money with the transfer or not. The

last thing you want to do is pay all these hidden charges. Also, practically speaking, you want to make

sure that you are not going to add to your headache on the service levels.

Cheap Home Loans in India: Will They Ever be AvailableAgain?



A home loan at affordable interest rates, particularly for the below Rs. 20 lakh segment, has long been a

cherished dream of common man. But is it really possible to get a home loan, which fits into every

budget? There are no simple answers to this question.

The home loans segment in India has witnessed a lot of movement in rates in the recent past. Home loanrates, which were around 7% floating rate of interest in 2004, are now greater than 10%. As a result, EMI

payments on loan amounts have gone up. High EMIs have driven home loans out of the reach of many

middle class families as the household budget cannot afford high monthly payments.

The seasonal festive discounts offered by leading banks such as SBI, ICICI, HDFC, Axis Bank etc. during

the last quarter of 2007 rekindled some hope among the borrowers for cheaper home loans. However,

these expectations were unmet whenhome loan rates did not decline after the RBI¶s monetary policy

review in January 2008.

A feature of the home loan market in India is that approximately 80% of the loan market comprises loans

of below Rs. 20 lakh. So, clearly this segment is very important. In fact, recently, the Finance Minister Mr .

P. Chidambaram repeatedly stressed the need for lower rates on sub-Rs. 20 lakh home loans.

Additionally, the RBI has also done its part by assigning lower risk weight to home loans up to Rs 20 lakh,

enabling banks to offer smaller loans at lower rates. But despite all the efforts by the ministry and the

regulator, are the lending banks falling in line?

Very few banks, like the Kolkata-based UCO Bank, have reduced the interest rates on home loans due to

the reduced risk provisioning for below20 lakh home loan

.Other banks, both in the public and private

domain have shown lukewarm response. The high inflation rate, which is hovering around 5% mark

doesn¶t allow banks to cut deposit rates. Consequentially the bankers feel that any further reduction in

home loans rates will only eat into their profitability.

At present Punjab National Bank (PNB) is offering one of the lowest rates on home loans. A Rs 20 lakh

home loan for 20 years is available at 9.5% floating rate of interest at PNB. Oriental Bank of Commerce is

offering the same home loan at 10%, HDFC at 10.25%, GE Money at 10.49%, SBI, Bank of Baroda and

IDBI at 10.5% and ICICI at 11%. Despite the low rates offered by PNB, their home loan offtake has not

increased substantially relative to other lenders.

Rising rates eat into a family¶s household budget. An EMI of Rs. 18,643 will be required to service a home

loan of Rs. 20 lakh for tenure of 20 years at 9.5% interest rate. For someone to afford this, their monthly

pre-tax income ought to be in the range of at least Rs . 45,000 - Rs. 50,000. If the rate is say 10.5%, then

the EMI will be Rs. 19,968. As can be seen, the higher the rate, the tighter the household budget due to

higher EMIs. How many people can afford these rising EMIs is open to question.



Further, as property prices rise, many families who could try to afford a Rs 20 lakh home loan are being

priced out of the market. High interest rates coupled with unsustainable increases in property price have

made the home loan borrowers think twice before jumping into the market.

Given the present cost of funds and pressure on bank profit margins, it will be difficult for banks to offer home loans at floating rates below 9%, despite all the pressure from the Finance Ministry and the RBI.

So, if you are looking for a cheaper home loan and are willing to wait for sometime, you might be able to

get a better deal. Otherwise there is always the option to compare home loans in India and find the best

home loan right here at iTrust.

Current Home Loan Interest Rates

Updated on 4th March 2010

Bank Name Interest rate range Rate Type Index rate

HDFC Home Loan 8.75% (RPLR - 5%) floating to 9.25% (RPLR - 4.5%) floating Monthly reducing RPLR is current

Axis Home Loan 8.75% (RPLR - 3.5%) floating to 9.25% (RPLR - 3%) floating Monthly reducing MRR is currently

LIC Home Loan 8.75% (PLR - 3.75%) floating to 9.25% (PLR - 3.25%) floating Monthly reducing PLR is currently

SBI Home Loan Till year 3: 8% - 8.5% fixed. Year 4 onwards: 9% - 10% floating Daily reducing SBAR is current

ICICI Home Loan 8.75% (FRR - 4%) floating to 9.5% (FRR - 3.25%) floating Monthly reducing FRR is currently

IDBI Home Loan 8.75% (BPLR - 4%) floating to 9.25% (BPLR - 3.5%) floating Monthly reducing BPLR is currentl

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5 Vital Tips on Home Loans