Home Loan EMI to go up as Banks hike Lending Rates

Home Loan applicants will now have to pay more as Banks have increased their MCLR on 1^st September, 2018. Leading Lenders of Home Loans such as State Bank of India and ICICI Bank have increased its benchmark lending rates. Public- sector Bank SBI has increased its MCLR by 0.2% (20 bps). ICICI Bank has also hiked its benchmark rate by 15 basis points. Previously, SBI and ICICI Bank had revised MCLR in June, 2018 before the second bi-monetary policy review.

SBI Home Loan Interest rate based on MCLR will get increase with an increase in MCLR. SBI One-Year MCLR stands at 8.45% from earlier 8.25%. Similarly, ICICI Bank’s six-month MCLR has increased by 15 Bps from 8.35% to 8.50%. One Basis Point is equal to hundredth of a percentage point.

As per RBI guidelines, all Loans taken after 1st April, 2016 are linked to the MCLR. Marginal Cost of Funds based Lending Rate (MCLR) is the Minimum Interest Rate below which Banks cannot offer Loans to the eligible customers.

State Bank of India New MCLR

State Bank of India MCLR
Tenure	Existing MCLR	New MCLR
Overnight	7.90%	8.10%
One Month	7.90%	8.10%
Three Month	7.95%	8.15%
Six Month	8.10%	8.30%
One-Year	8.25%	8.45%
Two-Year	8.35%	8.55%
Three-Year	8.45%	8.65%

ICICI Bank Revised MCLR

ICICI Bank New MCLR
Tenure	MCLR
Overnight	8.30%
One Month	8.30%
Three Months	8.35%
Six Months	8.50%
One-Year	8.55%

The increase in Lending rate is due to the 20% increase in bad loans during April-June quarter of the current financial year. This increase in Lending Rates has come ahead of festival time when banks offers special Home Loan schemes to eligible customers.

MCLR Rate offered by Leading Banks

MCLR Rates by Top Banks
Banks	Overnight	One Month	Three Month	Six Month	One-Year	Two-Year	Three-Year
Axis Bank	8.10%	8.10%	8.35%	8.50%	8.60%	8.70%	8.75%
HDFC Bank	8.05%	8.05%	8.10%	8.25%	8.40%	8.55%	8.70%
IndusInd Bank	8.95%	9.00%	9.30%	9.55%	9.60%	9.65%	9.70%
Kotak Mahindra Bank	8.05%	8.25%	8.55%	8.70%	8.95%	8.95%	9.00%
Yes Bank	8.40%	8.80%	9.35%	9.50%	9.65%	–
PNB	7.90%	8.05%	8.20%	8.40%	8.45%	–	8.60%
Bank of India	7.90%	8.05%	8.20%	8.40%	8.55%	–	–
Central Bank of India	8.00%	8.20%	8.40%	8.50%	8.60%	–	–

 

SBI Base Rate Cut by 30 Bps on New Year 2018

State Bank of India has cut its base rate by 30 basis points i.e (0.30%). The bank reduced the base rate and BPLR (Benchmark Prime Lending Rate). SBI, which is also the largest lender in the Indian market waived the processing fees on SBI Home Loan till 31^st March 2018. The bank earlier waived the processing fees till 31^st December 2017 but the bank surprised the customers with the new year gift. The base rate before the rate cut was 8.95% and now it has been changed to 8.65%. Remember that this rate cut is for the existing SBI customers only. BPLR have been changed to 13.40% which was 13.70% earlier.

With the change in base rate the retail loan customers will get affected which are around 80 Lakhs. SBI have a deposit base of 26.02 Lakh Crore. These new rates and the waiver will be effective from 1^st January 2018. According to the officials, This reduction is part of the bank’s efforts to ensure transmission of reduction in the policy rates in the recent past. Currently the bank is offering home loan of up to ₹ 30 Lakhs at the interest rate of 8.30% per annum. In case of processing fee waiver, the facility can be availed by the new customers as well as the other customers who are looking for home loan balance transfer to SBI.

The customers who took a home loan at the start of 2016, just before the MCLR (marginal cost of funds-based lending rate) rate regime began (in April that year), would have been paying a home loan rate that is 10-15 basis points above the base rate. So their home loan rate will come down to 8.75 – 8.80% per annum.

Many people who had taken the loan much earlier would be paying a rate that is 150-200 basis points (i.e 1.5% – 2% per annum) above the base rate. After the cut, their home loan rate will stand at 10.15 – 10.65% per annum.

This is the perfect gift for the SBI customers or the one’s who wanted to take loan from SBI. This is the perfect time to do this. Now you can avail loan with numerous benefit from the country’s largest lender.

How to Get Home Loan at Low Interest Rates

Those days are long gone when you had to wait for long months to get your loan disbursed. Now you can easily get home loan without any further difficulties. As a borrower some things are required from your side and rest, the bank will take care. At the initial steps, you need to keep your documents and other pre-requisite demands handy because the bank can ask for it anytime. Home loan interest rates vary from bank to bank but there are some other factors that helps in determining your Rate of Interest. There are two types of loan interest rates;

Floating ROI & Fixed ROI

First, Let’s have a fair idea of how these two rates differ from each other :-

Fixed interest rates stands for fixed EMIs that you pay on your home loan. Interest rate remains fixed which are not affected by the market fluctuations.

On the other hand, Floating interest rates are Dependant on the base rate and when the base rate of the respective bank changes, the interest rates also varies.

There is a difference between the interest rate of these two, The fixed rate of interest are usually higher than the floating interest rates.

For example, If a borrower wants to take home loan of ₹ 35 Lakhs for a period of 10 Years at the current interest rates of any ‘XYZ’ Bank which is as follows :-

Fixed Rate – 10% per annum

Floating Rate – 8.50% per annum (It depends on the Banks MCLR)

Then, The difference in values of fixed and floating rate of interest are given in the table below :-

	FIXED	FLOATING
Loan Amount	₹35 Lakhs	₹35 Lakhs
Rate of Interest	10.00%	8.50%
Tenure	15 Years	15 Years
Monthly Installments	₹37,611.00	₹34,466.00
Total Interest Amount	₹32,70,012.00	₹27,03,859.00
Total Amount (Principal + Amount)	₹67,70,012.00	₹62,03,859.00

One way in which the interest rate vary is in the form of different interest rate types (discussed above). Now that you know the two types of interest rates, it’s time to know how you can get home loan at low interest rates.

The home loan rates vary for a new customer and existing bank customers. For ‘Women’ the interest rates are usually lower than for ‘Others’. For example, SBI Home Loan the current interest rates for women is 8.30% (Upto ₹ 30 Lakhs) and for Others it is 8.35% (Upto ₹ 30 Lakhs).

Similarly, If you have an ideal credit score and satisfactory documents according to the bank norms, then you can easily negotiate with the bank regarding your interest rate.

The interest rate are also dependant on the loan amount you want to borrow. Every bank has it’s own interest rate sheet in which the loan amount is mentioned along with the categories.

If you are a salaried individual you are more likely to get lower interest rate than self – employed individuals. Banks require salary slips, minimum net monthly income and other employment related information of the borrower to disburse loan.

SBI Revises Home & Car Loan Interest Rates Effective from 1st November 2017

SBI updated it’s home loan & car loan interest rates on 2^nd November 2017. This has been done post MCLR (Marginal Cost of Lending Rates) rate cut on the very first day of November month.

According to the officials, These rates may vary depending upon the amount of loan and the credit score of the borrower.

Bank has reduced home loan interest rates to 8.30% per annum while rates on auto loans has been lowered to 9.20% per annum. With this reduction, SBI’s offering in the home loan segment has become the lowest in the market as claimed by the banks. The new rates will be effective from November 01, 2017.

The effective SBI Home Loan rates for all eligible salaried customers will be 8.30 per cent per annum for loans up to Rs. 30 lakh. Rates have been reduced by 5 basis points (0.05 per cent) in all other loan brackets. Over and above of 8.30 per cent rate, an eligible home loan customer can also avail of an interest subsidy of Rs. 2.67 lakh under the Pradhan Mantri Awas Yojana Scheme.

However if you want to avail car loan, Interest rates ranges from 8.70% – 9.20% p.a compared to the earlier 8.75 – 9.25% p.a.

According to the officials, These rates may vary depending upon the amount of loan and the credit score of the borrower.

Here’s Everything You Need to Know About SBI Personal Loan

State Bank of India being the largest lender provides several loan products for both self – employed & salaried individuals. Personal loan offered by SBI has got several advantages that help you achieve your personal level financial goals like wedding, education, travelling or any other emergency like medical treatment.

It is one complete product in itself which covers all your personal requirements.

You might be having several questions in your mind like what schemes are offered under SBI Personal Loan, What is the procedure to apply, Are you eligible to avail the loan or not & so on.

Let’s find out answers to your endless queries.

First things first, If you are a Salaried employee, Pensioner of Central/State Government/Armed Forces or Self – employed businessmen & professional with a regular source of income then you are eligible to get personal loan from SBI.

Majorly SBI provides loan to the government employees and central PSUs. Not only the bank is a master in providing loan for your personal activities, but it also provides SBI Home Loans & funds for other needs & requirements.

Features & Benefits of SBI Personal Loan

• Low Interest Rates
• Low processing fees starting from 0.50% up to 3% with no hidden costs or administrative charges.
• No security is required to avail loan
• Overdraft facility available
• Repayments can be done through easy Monthly Equated Installments. Check your EMIs with the SBI Personal Loan EMI Calculator in less than a minute.
• Flexible repayment tenure
• Even if you pay more than the EMI, SBI won’t charge any prepayment penalty.

Loan Amount

• The minimum loan amount you can avail starts at ₹ 10,000/-.
• Maximum personal loan that you can get from SBI comes with a ceiling of ₹ 15 lakhs. Loan amount may vary according to your Eligibility, Scheme (Xpress Credit, SBI Saral Loan & SBI Pension Loan) & tenure or time period for which you want the loan.

How to Apply ?

You can easily apply for SBI Personal Loan. All you need to do is visit the official website and apply online.

Steps to follow :-

• Open the official SBI website
• Click on the personal banking section > Personal Finance > Personal Loans
• Click on ‘Apply Now Online’
• Fill the required fields to get loan eligibility approval
• Get your loan offer & Complete your application.
• Alternatively, You can call on the below mentioned numbers
• Toll free number : 1800 11 2211
• Toll free number : 1800 425 3800
• Toll number : 080-26599990

Visit your nearest branch and the executives will guide you further regarding the loan procedure.

Documents Required to avail SBI Personal Loan

When it comes to SBI, it tries to keep the documentation easy and swift for customer convenience. Minimum documents are required. Check the below given list for the same :-

• Duly filled loan application
• Latest Passport size photographs
• Proof of identify (Voters ID card/ Passport/ Driving license/ IT PAN card)
• Proof of residence ( Telephone Bills/ Electricity Bill/Property tax receipt/ Passport/ Voters ID card)
• Proof of business address for Non – Salaried Individuals
• Last 6 months bank account statements
• Personal Assets & Liabilities statement
• Guarantor’s documents are also required depending on bank norms
• TDS certificate on Form 16 or copy of IT Returns for last 2 Financial years, Duly acknowledged by IT Department & Original Salary Certificate from employer is required for salaried individuals.

How can you get home loan from State Bank of India

State Bank of India is the leading banking institution which provides financial services to it’s customers. Being an Indian Multinational Bank, It is one of the most trusted bank in the market. SBI has its headquarters in Mumbai, Maharashtra. The bank provides loan for every financial need & requirement at individual basis. It’s products are customized according to the customer’s convenience.

If you are someone who wants to avail home loan from State Bank of India and confused about the procedure then you are at the right place. You can get Home Loan from SBI via easy procedure & attractive interest rates. You can also check your Equated Monthly Installments with Home Loan EMI Calculator on the desired home loan amount and tenure.

SBI offers Home Loan for Purchase, Construction, Renovation or Extension/ Improvement of the new entity for a maximum period of 30 years. On an average, SBI takes 3 – 10 working days for loan disbursement after satisfactory completion of documentation.

Refer to the information given below to know more about Home Loans from SBI.

Also, apply for SBI Home Loan today and get quick loan disbursal. Fill in your personal and professional details to get instant quote and know your eligibility.

Eligibility Criteria

Indian Citizen

The borrower should be an Indian Resident or an NRI to avail the loan up to an age of 70 years.

Your age must be above 18 years or more, at the commencement of loan.

Self – employed or salaried individuals can apply for the Home Loan.

NRIs (Non Resident Indians)

Total work experience of 2 years in India or abroad is required.

NRIs with a job contract for a minimum period of 2 years abroad after completion of 6 months in the employment and presently holding a valid job contract /work permit.

Indian citizens working abroad on assignments with foreign Governments/ government agencies or International/Regional Agencies are eligible to apply for Home Loan.

SBI offers home loan product in different schemes. According to your need. Here are the types of Home Loan provided by SBI :-

SBI Max Gain Home Loan

SBI Yuva Home Loan

SBI NRI Home Loan

SBI Realty Home Loan

SBI Pal Home Loan

SBI Tribal Plus Home Loan

SBI Gram Niwas Home Loan

SBI Flexi Pay Home Loan

SBI Hamara Ghar Home Loan

SBI Privilege Home Loan

SBI Shaurya Home loan

SBI Bridge Loan

Her Ghar Scheme

With all the above mentioned types, SBI Home Loan also offers balance transfer loan & loan against property facility.

Rate of Interest offered by SBI on home loans ranges from 8.35 to 8.60% which is subject to change depending on bank’s terms & conditions from time to time.

SBI charges no hidden cost. Processing Fee is 0.35% of Loan Amount subject to a minimum of Rs 2000/- plus applicable taxes and Maximum of Rs 10,000/- plus applicable taxes

How to apply ?

You can apply for home loan online through the SBI official website or via offline mode by visiting the branch itself.

Alternatively, You can call on 1800 425 3800, 1800 11 2211 or 080-26599990 (toll number).

Security / Collateral

Mortgage of property or Tangible security.

Additional security may be required in case where the house is under construction.

Documents required to avail the loan

Identity Proof – PAN Card, Driving License, Voter ID, Aadhaar Card

Proof of Income – Salaried applicants – Latest 3 month salary slip, Form 16 of the last 3 years.

Self – Employed Individuals – IT returns for the past 2 years and computation of income for the last 2 years as certified by a CA.

Documents required at the time of possession

Original copies of the chain of title agreements and Building Plan approvals

Original registration and stamp duty receipts

Possession Letter

NOC from the Society or any other concerned body confirming that there is no objection to the transfer.

Original share certificate (In case of societies)

Proof of payment of all dues like maintenance charges, electricity bills, phone, water and property taxes up to the date of handing possession.

SBI MEASURES TO TACKLE AFFORDABLE HOUSING LOAN DEMAND

State Bank of India is in the race nowadays, To meet the rise in demand of housing loans. For this the bank is taking measures in order to not to disappoint the customers.

SBI is already preparing every possible check list for it’s customers.

There is a shortage of housing due to which chances are that the demand for SBI Home Loan might increase & the demand will be basically from government agencies rather than private builders.

SBI provides home loan on an average of Rs. 24 lakh & The customers are usually first time home buyers according to the experts.

SBI have already started taking the issue into consideration & aiming at quick approval process.

After coming of Pradhan Mantri Awas Yojana (PMAY) there are chances that the demand of the home buyers will rise for Home Loans.

By the end of the year 2017, SBI will be sanctioning home loan in more than the previous year statistics.

Many factors are encouraging borrowers to opt for Home loans.

In the June quarter, The properties priced below ₹ 25 lakh, made up around 17% of overall housing sales in eight metropolitan cities. During the quarter, A total of 10,890 housing units in this segment were sold.

At the end of June, The home loan book stood at ₹ 2.88 trillion with 33% market share.

Outstanding Total housing loans of the banking sector stood at ₹ 8.62 trillion, 11% higher year-on-year, According to the latest data from the Reserve Bank of India.

All the steps that SBI is initiating is going to help the borrowers in the loan process & Also going to stimulate the customer’s growth eventually.

SBI is considered as one of the biggest lender offering Home loan of Up to ₹ 30 lakhs at 8.35% per annum. The Bank comes with various types of products under home loan category to suit the need & requirement of each & every individual.

SHORT NEWS FOR THE PAGE

As the demand for housing is increasing, SBI is also taking steps to make better plans for future hike in demand for home loans. Currently, SBI is offering Home loan of ₹ 30 lakhs at 8.35% which is a competitive loan product in itself. The customers are usually the first time borrowers who tend to fear the hectic procedure of loan approval. SBI is already taking measure and initiating quick approval process for the customer’s convenience. As the festive season is also coming there are chances that SBI will be coming up with more & more home loan applicants.

After PMVY, already there is a hike in the number of home buyers under different schemes or products of SBI. At the end of June, The home loan book stood at ₹ 2.88 trillion with 33% market share.

Outstanding Total housing loans of the banking sector stood at ₹ 8.62 trillion, 11% higher year-on-year, According to the latest data from the Reserve Bank of India.