The central bank Reserve Bank of India (RBI) in its bi-monthly monetary meeting on Friday decided to keep the rates unchanged. According to the decision of the central bank, the repo rate will remain at 4 percent as before. Apart from this, the Reverse Repo Rate also remains at 3.35 per cent. These rates have a great impact on the common people because on the basis of this, the loan rates are determined. Talking about home loan, this time is very suitable for taking home because you are getting home loan at less than 7 percent. Talking about private and public banks in the country, home loans can be taken from Kotak Bank and SBI at the lowest rates up to 6.75 percent.
Home loans from government banks
SBI: Talking about the country’s largest bank, State Bank of India, it is providing home loans at the rate of 6.8 percent, but will have to pay 5 bps (0.05 percent) less interest on applying through the YONO App. In this way, home loan can be taken from SBI at the rate of 6.75 percent.
where: Union Bank of India is providing home loans at the rate of 6.8 percent to 7.35 percent.
PNB: Talking about Punjab National Bank, this bank is providing home loans at the rate of 7.35 per cent to 9.60 per cent. If you have a credit score less than 700, interest can be paid at the rate of more than 9 percent.
Home loans from private banks
Bank Box: Kotak Bank is providing home loans at the cheapest rates in private banks. Kotak Bank is providing home loans at the rate of 6.75-8.45 per cent.
ICICI Bank: ICICI Bank is providing home loans ranging from 6.8 percent to 8.05 percent.
HDFC Bank: Talking about HDFC Bank, the country’s largest private bank, this bank is providing home loans from 6.8 percent to 8.2 percent.
EMI will be less in this bank
Suppose you want a home loan of 30 lakh rupees for a period of 20 years, then you will have to pay EMI bank-wise.
- EMI of Rs 22,900 at 6.8%
- Total interest – Rs 24,96,045
- Several total amount paid – Rs 54,96,045
- EMI of Rs 23,893 at 7.35%
- Total interest – Rs 27,34,412
- Total amount repaid – Rs 57,34,412
- 22900.19 at the rate of 6.8 percent
- Total interest – Rs 26,96,044
- Total amount repaid – Rs 54,96,044
- Rs 22,811 at the rate of 6.75 percent
- Total interest – Rs 24,74,621
- Total amount repaid – Rs 54,74,621
In this way we see that for taking a home loan of 30 lakh for 20 years at the rate of 6.75 percent in Kotak Bank, Rs 54.74 lakh has to be paid, which is the lowest among all these banks. SBI will have to pay Rs 54.96 lakh for taking a home loan for 20 years at the rate of 6.8 per cent, but if the loan is taken through the Yono app, the interest will be reduced by 0.05 per cent and the same loan will have to be paid for repaying Rs 54.74 lakh.
(This whole calculation has been done from the interest rate and calculator given on the bank’s website.)
Interest rates depend on many factors
Most people take loans from the bank to buy a house. At what rate the bank will provide home loan, it depends on many factors such as age of the applicant, gender, loan amount, duration. Apart from this, the rate of interest for the loan depends on the credit score. The lower the credit score, the higher is the interest rate, such that PNB gets a loan of more than 9 percent on a CIBIL score of less than 700. Apart from this, the loan rates also depend on LTV ratio (loan to property value ratio).