Home loan interest rates in Kerala
coming to building their dream home all first think of a bank loan, most people with salary account prefer home loans over personal loan since the home loan interest rates are marginally low, there are always concerns about the total loan amount, which bank to choose, what are the subsidy’s and tax benefits available, interest payment, the monthly interest of housing loans, loan emi, etc.
To get the best housing loan interest rate you have to meet certain home loan eligibility criteria’s like good credit score, short loan tenure, etc. as the home loan amount increases, the associated credit risk also increases, the loan amount is desired to be less than 30 lakhs to get the best rate of interest.
home renovation loan is also available for lesser amounts, home loan eligibility calculator is available at bank websites to check your eligibility
Home loan Interest rate
Home loan interest rates range from 6.90% to 9.40% in Kerala,
A lower credit score will attract higher interest rates in home loans,
a fixed interest rate is ideal when your current home loan rate is the lowest
In Floating rate, the interest will vary according to the periodic revisions of rbi’s repo rate
women borrowers often receive better interest rates for home loans
Top banks offer the best interest rates for home loans
Along with private and public sector banks, Institutions like Kerala housing finance limited KSFE and lic housing finance offer home loans against equitable mortgageFor people who are not a salaried employee or who own business, self employed, non resident Indians, self employed borrowers, etc. some times approach private banks despite high-interest rates, due to the ease in documentation and loan processing and approval
Public sector bank charges less processing fee and provide the cheapest home loan. Processing charges are very less and are offered free on some occasions. Pre closure charges are nil for most of the banks
- Union Bank of India is providing best rates charges 6.7 %, maximum loan up to 30 lakhs.
- SBI provides term loans up to 30 lakhs.
- Bank of Baroda provides flat rate up to a maximum loan amount of 75 lakhs
home loan advantage scheme by Bank of Baroda, provides savings account along with home loan account, linked to each other, the interest calculated based on the total outstanding loan amount deducting the savings account transactions
subsidy on home loans
If you are building a new home in an urban area with an annual income of 3 lakhs to 18 lakhs you are eligible for a PMAYU subsidy.
6% to 3% subsidies available for different salary groups within desired carpet area house, the tenure period should be less than 20 years.
Tax benefit on home loan
If you are an income tax payer you are eligible for 3 kinds of benefits in your home loan, Every monthly repayment amount is principal amount plus interest in equated monthly installment (EMI), principal component up to 1.5 lakhs can be claimed under 80C. Interest up to 2.5 lakhs can be claimed under section 24Home loan emi calculator are available at partnering banks websites
*TransUnion CIBIL LIMITED, [formerly known as Credit Information Bureau (India) Limited] provides the cibil score.
The Reserve Bank of India (RBI) has directed all scheduled commercial banks (except regional rural banks), local area banks, and small finance banks to link interest rates of all retail loans, including home loans, offered by them, to an external benchmark rate. home loan interest rates lowest for the 15 years, an existing loan can be shifted to lesser interest rate, loan tenure