Home loan interest rates: As interest rates rise with rising RBI, here are 5 banks offering the cheapest home loan interest rates
Now, borrowers will have to prepare for continued interest rate hikes on their loans after enjoying low interest rates for a decade.
Here is an overview of the 5 banks offering the cheapest interest rates for home loans.
How much your EMI will increase
The total increase in the repo rate after the current boost is 0.9%. Due to central bank rate hikes, lenders such as banks and housing finance companies will increase their lending rates in response, which means your EMIs will also increase. Your EMI will increase by Rs 1,648 from Rs 23,259 to Rs 24,907. If you have a home loan with a balance of Rs 30 lakh and a balance term of 20 years at 7% interest per annum, your EMI would increase by Rs 1,648 from Rs 23,259 to Rs 24,907. You may have to pay additional Rs 55 in EMI for every lakh rupees borrowed.
Also Read: ICICI Bank, Bank of Baroda, Bank of India, PNB Raise Home Loan Interest Rates: Check Latest Rates Here
Amount of the loan
Most lenders offer home loans ranging from 75-90% of the cost of the property, depending on the amount of the loan, as defined by the regulator. Depending on your eligibility for the home loan, if the property is valued at Rs 50 lakh by the lender, you can get a maximum loan of Rs 40 lakh (80% of the cost of the property for a loan amount up to Rs 75 lakh).
Pre-EMI is a term that refers to a loan that is taken out on a property that is still under construction. In this case, your loan is disbursed in stages based on the amount of installments you must pay to the promoter. According
“You are generally required to start paying interest only on the disbursed loan amount (known as pre-EMI interest). If you want to start principal repayment immediately, you can choose to terminate the loan and start paying the EMI on cumulative amounts disbursed.