There isn’t much a house loan borrower can do about interest rate changes, as the changes in home loan will depend on the RBI’s decision. So at least borrowers can make sure they are obtaining the best available terms on their loans.
After a series of increases that began in May 2022 and continued until February of this year, the most recent status quo by RBI marks the third consecutive repo rate pause. Home loan interest rates for individuals vary depending on the various factor including CIBIL Score, salary, employment, tenor, etc,.
You must compare your home loan interest rate with those of other lenders; if you discover that they are providing a new borrower with a considerably cheaper interest rate, you may transfer your loan after determining the nbenefit.
Here is a full list of home loan interest rates of banks as on September 7, 2023.
Top banks home loan processing fee
HDFC Bank can charge up to 0.50% of the loan amount or Rs 3,000 whichever is higher, plus applicable taxes. PNB charges up to 0.35 % (min. Rs.2500/- max. Rs.15000/-) plus documentation charges of Rs 1,350. Canara Bank charges 0.50% (Min Rs.1500/- and Max. Rs.10,000/-).
Importance of CIBIL score
The CIBIL Score for Home Loan is a three-digit number that ranges between 300 and 900. The higher the credit score, the better the chances of obtaining a lowest home loan interest rate. A consumer must have a credit score of at least 701 to be eligible for a home loan from Bank of Baroda.
Home loan tenure
The length of time a home loan must be returned to the lender or bank is known as the tenure. The maximum loan term is 30 years, during which the EMI payments will be made. The maximum tenure for a person depends on their retirement age as well as other elements that affect the tenure time.
Home loan rates linked to EBLR
Borrowers of home loans who recently took external benchmarked-linked loans and whose loans are tied to the repo rate were forced to endure the full impact of these repo rate increases. Along with the increases in repo rates, their home loan interest rates would have increased. If your loan is repo-linked, your rate will immediately reset following any repo rate adjustment.
