# Tagged: Home Loan

# Home Loan Rate Saga Difficult to Fathom without Understanding MCLR

The demonetization of higher currency notes, as expected, brought about a massive rise in the bank deposits, making it easy for the lenders to lower their home loan rates. While Bank of Baroda (BoB) has slashed its 1-year MCLR to 8.35%, State Bank of India (SBI) cut the same by 90 basis points to 8%. Whereas, the private lender ICICI Bank cuts its 1-year MCLR to 8.20%. So, do you know how does MCLR influence the home loan rates? If not, then this article could tell you the same. So stay tuned as we crack the mystery of MCLR below.

**Origination of MCLR**

The Reserve Bank of India developed the concept of Marginal Cost of Lending Rate (MCLR) to reverse the trend of the inadequate response from the banks with respect to the changes made in the repo rate by the central bank. The repo rate signifies the rate at which the commercial banks borrow from the RBI for their short-term needs. All floating rate loans from April 1, 2016, onwards have already come under the MCLR regime. Typically, it’s home loan that is readily available at floating rates by most lenders. And when you think of its tenure that’s as long as 30 years, you can make hay in times of falling MCLR. However, the downside is the escalating lending rates in the wake of increasing MCLR induced by the hike in repo rates. But since the MCLR is on a declining trend and could continue to fall for a fair length of time, the home loan rates are expected to plunge further. So, the time is ripe for home loans as one would speak of.

**What Does MCLR Include?**

The bank arrives at MCLR based on the following points.

**Operating Expenses**-The day-to-day operational cost of the bank is referred as operating expenses

**Cost for Maintaining Cash Reserve Ratio**– Cash Reserve Ratio (CRR) determines the amount of cash that the commercial banks have to keep with the RBI. The bank does not receive any interest on the said deposit, thus becoming its cost.

**Marginal Cost of Funds- **The costs borne by the banks in the form of interest offered on savings and fixed deposit accounts, as well as the short-term borrowing rate i.e. repo rate.

**Tenor Premium-**This is an additional interest slab over the base rate based on the loan tenure.

**Approach of Bank Towards Setting MCLR**

The bank publishes the MCLR on a monthly basis subsequent to revising it once a quarter. The MCLR for different periods is announced by the bank. The bank publishes MCLR for a fortnight, month, a year, two years and three years. Whatever changes are brought in the 1-year MCLR, the interest rates on a home loan undergo a change. The banks are mandated to specify the rate reset frequency in the loan agreement paper.

There is a catch here to unfold. Want to know what is it? Many borrowers carry the false notion that every MCLR change brings a change in the lending rates. Actually, the loan will be serviced at 1-year MCLR as applicable on the date of loan disbursal for 1 year. For example- You got the receipt of the home loan on 31st August, 2016. The 1-year MCLR applicable at that time was 9.05%. The benchmark rate will continue to apply for a year i.e 31st August 2017. After that, the loans will be repriced. The MCLR changes are applicable for new loans only.

**Differentiate between Benchmark Rate and Lending Rate **

The lending home loan rates are a sum of 1-year MCLR plus the spread. At the start of the ongoing year 2017, SBI bowled a ‘Googly’ to stump out many of its competitors by announcing a 90 basis point cut in the benchmark lending rate. At the beginning, everyone thought that the home rates had fallen to 8%. But in reality, the MCLR was brought down to 8% from 8.90% earlier. The lending rate was 8.60%-8.65% per annum, 60-65 basis point above the benchmark rate. Even though the lending rates fell, but the spread over the 1-year MCLR was more than what was earlier. Before the development, the spread over SBI’s 1-year MCLR was 20-25 basis points, lower than what it is now. In this way, the bank has reduced the transmission of rate cut benefits even by offering the home loan at lower rates.

**Home Loan Rates of Few Banks and Housing Finance Companies**

State Bank of India- 8.60%-8.65% p.a.

Bank of Baroda- 8.35%-9.35% p.a.

ICICI Bank- 8.65%-8.85% p.a.

HDFC Limited- 8.65%-8.75% p.a.

Indiabulls Housing Finance- 8.65%-8.85% p.a.

So, this was MCLR and its impacts on the floating rate home loans. Hope you have understood the phenomenon well to get your dream home soon.

# Home Loan Calculator -Is It worth Using to Pay off Your Loans?

Thanks to the digital world! You can explore-what suits your pocket with ease. Well, guess what loan applicants are thinking of Home Loan Calculators you are on the right track. In all housing finance companies and banking sites, you may find Home Loan Calculators, also called as the EMI Calculators. You can quickly calculate your eligibility, check the proposed home loan amount, interest rate, tenure, EMI Per month as per your convenience.

**Home Loan EMI-**

EMI, short form for Equated Monthly Installment that is paid every month to the bank or any other financial institution till the time loan amount is paid-off completely. It involves the interest on loan along with the portion of the principal amount to be repaid. The sum of the principal amount and interest is divided by the tenure i.e. number of months, in which the home loan has to be repaid. This amount is repaid every month. The interest portion of the EMI would be larger in the initial months and slowly reduce when compared to the principal amount. The exact percentage apportioned towards payment of the principal is dependent upon the interest rate. Even though there will be no change in your monthly EMI payment but the portion of the principal and interest components gets changed with time. With every successive payment, more will be the payment towards the principal and less in interest.

**Home Loan EMI Calculator Formula **

The formula specified below is used by EMI Calculator for calculating your EMIs applicable on a home loan :

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

where,

EMI= Equated Monthly Installment

P= Principal Loan Amount

R= Monthly Interest Rate

N= Number of Monthly Installments

**For example** : In order to calculate EMI for a principal value of ₹ 1 lakh, 10% interest rate and 12 months tenure; following will be the calculations:

Principal amount : ₹ 1,00,000

Rate of Interest : 10%

Tenure : 12 months

Calculated EMI : ₹ 8792

After going through above example, it is noted that there are three governing factors behind EMI payments : principal amount, interest rate and tenure. The EMI payments are directly proportionate to the loan amount and interest rates, and are inversely proportional to the tenure of the loan. The higher the loan value or interest rate, the higher is the EMI payments and vice versa. In the context of tenure of the loan, the total interest amount to be paid increases with the increase in tenure, the EMI payments decrease with an increasing tenure.

**Benefits of using Home Loan Calculator**

**Details Required for Home Loan Calculator-**

Loan applicants, whether you are a salaried or self-employed person-Home loan calculator is a blessing for you. By entering your basic details whether personal and professional like your PAN Card number, Email address, qualification, total income, name and mobile number, you can easily compute your home loan eligibility.

**Accuracy Issue-**

The question always comes up at times in the mind of loan applicant -Is the calculator -accurate which I’m using? It should be remembered, more the details are taken into consideration, more the accuracy. So, always check which websites are asking you to enter maximum details. It will help you plan in advance and pay off comfortably.

**Comparative Analysis-**

Perhaps, home loan calculator is the best arithmetic tool which helps you to recognize your home loan provider. While you start using the different calculator-you can easily spot the difference which providers are giving you for the best deal.

**Navigating Hidden Calculations-**

Simply by making few clicks on your mouse, you can find hidden calculations like how much you require to pay for the balance transfer to any other bank?

**Location of your Home Loan Calculator-**

The loan applicants should always make use the EMI and Home Loan Calculator of their own country or for that country where you are buying the property. This is because the local and government rates are levied subsequently and the result would be more authentic.

**Amortization Schedule-**

A home loan amortization schedule specifies all the essential information that are required towards making your home loan repayments such as loan amount, the period of scheduled payments and outstanding balance. It details about your home loan EMI break-up, repayment of interest information and outstanding principal of the loan. The applicants use the schedule for making decisions pertaining to the prepayment or refinance of a loan and also give details of interest for availing tax exemptions.

**Home Loan EMI Calculator Excel-**

Home loan applicants can easily calculate their home loan EMIs on MS Excel. They are required to use the function PMT in order to calculate EMIs.

They need to follow the below syntax while using the formula in EMI Calculator in MS Excel.

**Syntax :** PMT (rate, nper, pv)

The variables used in the above formula are :

**rate –** Rate of Interest on the loan

**nper-** Total number of payments for the home loan

**pv- **Present value/principal

# Top Banks to apply for Home Loan Online

Home loans are secured loans offered by banks and NBFCs wherein the borrower has to keep some valuable things as the security to the particular lender. In present times, when banks have cut their lending rates recently, the lowest home loan interest rate is offered by Bank of Baroda at 8.35% p.a. However, there are many other options in the market as well that come up with low-interest rates and higher loan amount. Hence, go through the home loan or housing loan interest rates in top 10 banks below:

**Home Loan Interest Rates in Top 10 Banks**

- State Bank of India- 8.70% p.a. onwards
- ICICI Bank- 8.65% p.a. onwards
- Axis Bank- 8.65% p.a. onwards
- HDFC Bank- 8.65% p.a. onwards
- Bank of Baroda- 8.35% p.a.
- Bank of India- 8.65 p.a. onwards
- LIC HFL- 8.50% p.a. onwards
- Canara Bank- 8.65% p.a. onwards
- Andhra Bank- 8.90% p.a. onwards
- Bank of Maharashtra- 8.95% p.a. onwards

It is also important to note that there are certain factors on the basis of which you can get a home or housing loan. These factors are however subject to change from one applicant to another and from one lender to another. Having said that, here are the factors affecting the home loan eligibility:

**Factors Affecting Home Loan Eligibility**

**Monthly Income-** The higher you will earn, the more loan amount you can get. So, the applicants who have a handsome monthly salary are most likely to get low-interest rates as well.

**Age**– If you are a young professional, you will obviously have less financial responsibilities on your shoulders. Hence, a young professional can get an overall great deal of home loans as his eligibility is higher.

**Property Value**– When you buy a property from an authorized dealer, banks will find it easier to finance that property. So, it is advisable to go for a property that would make the loan application easier.

**Credit History**– Be it any loan, having a good credit history is very important as lenders would trust you on the basis of your credit score also. Since defaulters are not much acceptable by the banks for any kind of loan.

**Work Experience**– The stability in the present organization is also another important factors when it comes to housing loan eligibility. Having said that, generally, 2-3 years of job stability is required by the bank for a home loan.

**Your Employer Category-** Banks and lenders generally trust applicants who are working in a reputed firm or MNC. So, if you are one of them, good for you!

**Professional/Business Status-** In the case of self-employed, there must be a good business running experience of an impressive stability in the present profession.

**Relationship with Lender**– If you are an existing customer or a borrower, it will add on to a plus point for you.

**How to check loan affordability**

On the basis of the above rates, you can check your loan affordability also. Loan affordability in simple term means the fund you actually afford for a smoother repayment. Many people often take a loan and then face difficulty while paying it back to the bank. However, checking the EMI, the total interest outgo, and the total amount (interest+principal). For this purpose, EMI calculator is used. An EMI calculator is actually an online calculator that is used to calculate the EMI (Equated Monthly Installment) and other related payment details. With the help of this, you can know in advance the total payment you will have to make for the loan you have taken and then decide if you can afford that particular amount or not.

**Eligibility Criteria**

Once you have done the research and decided to apply for a home loan, you must go through the eligibility criteria as well. The eligibility criterion set by the bank is subject to change from an applicant to another. However, the general eligibility criteria for a home loan is as follows:

For Salaried:

- The applicant must be between 21-60 years
- The minimum annual income should be ₹1,20,000
- Applicant must have the work experience of 2-3 years

For Self-employed:

- The applicant must be between 21-65 years
- The minimum annual income of the applicant should be ₹1,50,000
- There must be at least 3 years of current business stability

**Documents Required**

For Salaried:

- ID Proof (Passport/PAN Card/Voter Card/Driving License)
- Address Proof (Passport/Ration card/Utility Bill)
- Last 3 months salary slip
- 2 Passport size photographs
- Last 1-year bank statement with salary credit details

For Self-employed:

- ID Proof (Passport/PAN Card/Voter ID Card/Driving License)
- Address Proof (Ration Card/Passport/Utility Bill)
- Last 3-years ITR with the details of profit and loss
- Last 1-year bank statement (both credit and savings account)

**How to apply**

Now that you have got all the information, you can apply for loan without any hassle.Thus, with the all the above details, you can easily apply for the loan in any of the top banks that suits your purpose.

# Compare the Housing Loan Interest Rates to Reduce the Cost of EMI

Most of the people aspire to live in the dream home but wait for the right time when they’ll be in a position to buy one with the wealth accumulated in the lifetime. Throughout the life, they save money in hope that one day they will own a house. But by the time they accumulate the amount, the economic condition change and prices soar. Which in turn results in further postponing the plans of moving into a self-owned home. Mind it, whenever you get a home of your choice just book it and the finance could be arranged easily by taking a home loan. There are number of banking and financial institutions that can assist you buying your dream home. But before choosing the financiers compare the housing loan interest rates charged by them. This will help you get the best deals and reduce the burden of repayment.

It is always advisable that the borrower must check the lending rates of various banks and housing companies before availing a credit facility. It is only after going through the rates and other product features that the borrower must select the lender and apply for the loan. The borrower must even calculate the repayment amount as this will help him plan the future expenses and save him from defaulting. The borrower can calculate the repayment amount by using the fixed deposit calculator.

In the further article, the housing loan interest rates of various banks and the method of calculating interest is discussed.

**Home Loan Interest Rates Offered by Various Banks:**

The housing loan interest rates of various banks are as follows:

**State Bank of India-**

The State Bank of India offers home loans at an attractive rate of interest. It charges interest at both fixed and floating rates. The fixed rate of interest on the loan amount up to ₹ 30 Lacs for first 2 years for women borrowers is 8.50% p.a. and for others, it is 8.55% p.a. While the floating rate of interest is as follows:

- Up to ₹ 75 lacs: The interest rate for women borrowers is 8.60% p.a. and for others, it is 8.65% p.a.
- Above ₹ 75 lacs: The interest rate for women borrowers is 8.65% p.a. and for others, it is 8.70% p.a.

**HDFC Bank-**

The HDFC Bank provides housing loans at reasonable rates and for longer tenure lasting up to 30 years. The lending rates variates as per the slab. The rates prevalent on various loan amount are as follows:

- Up to 75 lakhs – For women applicants, the rate of interest ranges from 8.65 to 9.15% p.a. while for others it is 8.70 to 9.20% p.a.
- Above ₹ 75 lacs – The rate fluctuates from 8.70 to 9.20% p.a. for women applicants and for others it is 8.75 to 9.25% p.a.

**ICICI Bank-**

At ICICI Bank, one can avail loan up to ₹ 3,00,00,000 for the maximum period of 20 years. The loan is charged at both fixed and floating interest rate. For women borrowers the floating interest rate variates from 8.65 to 8.80% p.a. and fixed rate ranges from 8.70 to 10.05% p.a. On the loan of amount up to ₹ 28 lacs, the rate of interest for weaker section borrower is 8.65% p.a. However, the floating rate of interest on loan availed by salaried and self-employed individuals ranges from 8.70 – 8.85% p.a. And the fixed rate variates from 8.70 – 10.10% p.a.

These were the rates offered by some of the banking institutes. But now it is important to know how are these rates determined or what are the factors that affect the interest rates. The factors that contribute to the determination of housing loan interest rate are mentioned below:

**Factors Affecting Home Loan Interest Rate:**

**Income**– The income of the applicant is the major factor that helps in deciding the loan eligibility and the rate of interest. The salary or the revenue earned by the applicant during a financial year is a major concern of all the lenders. The applicants with high income get loans at an attractive rate of interest.

**Credit History**– Another important factor that helps in deciding the lending rate is the credit history of the applicant. The applicant having clear records and good credit score are likely to get a loan at pleasing rates.

**Location of Property**– Unlike other loans, in a home loan the location and the surroundings of property make much of a difference. Even the name of builder/agency you are purchasing home from impacts the eligibility and rate of interest. So, it is advisable to buy a house from the trusted builders.

**Value of Property **– The value of property too affects the housing loan interest rates.

**Article Source: **http://wishfin.weebly.com/blog/compare-the-housing-loan-interest-rates-to-reduce-the-cost-of-emi

# How does Housing Loan Calculator Work

A housing or home loan calculator is the tool that is used to calculate the EMI. It has many names like interest calculator, EMI calculator, and loan calculator but they are one and the same thing. This calculator has made it possible for people to calculate their monthly installment they are liable to pay to the bank for the loan they have taken. This calculator is not restricted to the calculation of the installments of a home loan, you can know the monthly installments of all kinds of loans be it a personal loan, a car loan, a loan against property or a business loan, etc. However, if we talk about the home loan calculator, the usage is actually very simple and customer-friendly.

**Functioning of Loan Calculator**

Focusing on the housing loan calculator in this article, let us see how can you calculate your EMI or interest with the help of this online tool called loan or EMI calculator. To start with, you must know that this tool would take into account the basic details of your home loan which are:

- Loan amount
- Tenure
- Interest rate

Now, when you mention the above details in the calculator, it would give you the data of the EMI, the total interest outgo, and the total amount (principal+interest). Here is an example with the loan amount ₹20 lakhs with the tenure of 15 years and interest rate of 8.35% p.a.

EMI: ₹19,519

Total interest outgo: ₹15,13,480

Total amount: ₹35,13,480

**EMI Formula-**

Here is the formula to calculate the EMI or equated monthly installment:

E= P.r. (1+r)*n/((1+r)*n -1)

Where,

E=EMI

P=Principal loan amount

r= Rate of interest on monthly basis (r= Annual rate of interest/12/100)

n=Loan tenure

**What makes Loan Calculator unique?**

Even though there are many ways to do the calculation, a loan calculator is still different from others. So, here are the benefits of using a housing loan calculator:

**Accurate results**– One of the main advantages of using an EMI calculator is that it gives you accurate results, unlike manual calculation where the possibility to make mistakes is more. So, whenever you want to know the information about your loan, use an EMI calculator and get the idea of the exact payment you will have to pay to the corresponding bank.

**Time-Saving**– Since everyone is getting busier each day, a tool like this makes it convenient for people to save time. As soon as you mention, the amount, the interest rate and the tenure you have been offered, you get the details of all the payments within few seconds.

**Flexible Adjustable**-You will be surprised to know that you are free to use the calculator n number of times. Yes, generally, people prefer using this tool before applying for any loan to check their affordability. By doing so, you get the option to do

**Easy Comparisons**– With the help of the calculator, you can compare all the home loan offers available in the market and then choose the best one for yourself.

**More than EMI**– The calculator gives the information more than the monthly installments like the total interest outgo and the total amount (principal+interest). Other than these, you get the amortization schedule.

**Suits your Budget**– When you check the installments in advance, you can see if you will be able to manage that particular amount without affecting your other financial liabilities.

**Accounted Processing Fee**– A normal EMI calculator would tell you the payments only on the basis of the interest rates. But, as you know there are some processing fees charged on your loan which is not included in the interest rate. Since, the interest rate offered by the banks do not count processing fees, w loan calculator would let you know the payment excluding the other charges. However, there are some calculators that would count the processing fees also.

Now, as you can see the above benefits, it is quite obvious that a loan calculator is unique in all the ways be it the instant result requirement or the detailed information of the loan.

**Top EMI Calculators in India:**

In India, there are thousands of banks and NBFCs that provide home loans, hence there are n number of calculators as well. Having said that, a borrower can use any of the following calculators for his/her purpose:

- Home loan EMI calculator HDFC
- Home loan EMI calculator SBI
- ICICI Home loan calculator

Thus, by going through the above details about the housing loan calculator, it will be quite easy and understood for you as a borrower to use this. With the help of this, you can know in advance your payments and for sure manage your other monthly financial expenses accordingly.

# Do the Exact Calculations Easily with Home Loan Eligibility Calculator

Buying a home is a dream of many, but actually not many are able to fulfill that due to lack of finances. Money plays a pivotal role in fulfilling the wishes, if you don’t have money in hand, a wish will always remain a wish, you would not be able to fulfill that. However, if you have a wish of buying a dream home, and don’t have financial support, nothing to worry as you have an option of a home loan. Yes, that’s right! Availing a loan is undoubtedly one of the best ways to get closer to your dream home as it allows you to fulfill your dream in a hassle-free manner. But, one thing that needs to be mentioned here is the fact that before you avail this sort of loan facility, it is important that you should know the eligibility for the same.

Yes, to avail any sort of home loan you need to meet the eligibility criteria set by the lender. Now, when we say home loan, there are plenty of lenders available in the marketplace, which offer finance for the same, but With different eligibility norms. You need to fit into that criteria in order to become eligible for a loan. There are different eligibility parameters you need to match i.e. age, income, job/business stability, total years of work/business handling experience, previous loan, monthly expenses, relationship with the lender, employer category, etc. Yes, these are the few important parameters that lenders always keep in mind while availing you the loan.

Now, if an individual meets all the parameters set by a lender, it does not mean that he/she will get the required loan amount what he/she is looking for. Deciding the loan amount eligibility of an applicant/borrower is all together a different ball game, which most of the lenders calculate differently. Yes, different lenders calculate the loan eligibility of an applicant differently, based on various points. But, the easiest way to know the same is via home loan eligibility calculator. This smart, effective and time-saving tool allows you to know your exact eligibility of the loan amount in the most hassle-free manner.

Let’s just get more clarity on the same with the help of examples below. We are going to compare two scenarios here to have a better understanding of the same.

Scenario 1: Akash Sharma, a 26-year-old, Software Engineer by profession earns a monthly income of₹50,000. He wants to buy his dream home in New Delhi, hence for the same, he has applied for the same. He has the monthly expenses of ₹20,000, which means he saves more than half of his income i.e. ₹30,000 each month. Now, after looking at his profile one lender is ready to offer him the 90% of loan amount by looking at the perspective that he can easily repay the same amount as he has the savings.

Scenario 2: Avinash Aggarwal, an Assitant Casting Director is also 35-year-old and gets a monthly income of ₹30,000. He is looking to buy a home in the capital itself, thus has applied for a loan. Avinash spends half of his income i.e.₹15,000 to manage the monthly expenses, which means he saves ₹15,000 each month. Now, in his case, one lender has also agreed to offer him the loan, but not the same loan amount what he is looking for. He will get only 60%-70% of the loan amount he wants to avail.

Now, many of you must be wondering why Avinash will get the minimum loan, which is not the case with Akash. Well, the reason behind the same is the fact that there are various factors that worked in the favour of Akash.

- Akash’s income is higher than Avinash.
- He is younger than him, which means Akash can continue the loan for a longer tenure.
- The monthly expenses-Avinash’s monthly expenses are higher than Avinash.
- Savings- Akash’s savings are higher than Avinash, which is also a deciding factor here.

However, if you carefully read these points, these are the same parameters, mentioned above in the article, that help in deciding the eligibility of a borrower. Now, what is the exact amount both the applicants will get? I am sure you are curious to know?

Let’s just use the technique how most of the lenders via home loan eligibility calculator computes the loan amount of the borrowers. For your reference, we are calculating the eligibility for ₹1 Lakh.

**Scenario 1: Akash**

Loan Amount: ₹ 1 Lakh

Tenure: 20 Years

Interest Rate: 8.60% per annum

EMI: ₹ 874

So his calculation would be:

₹1,00,000 x 20,000(savings)/874=₹22.88 Lakh (approx.)

**Scenario 2: Avinash**

Loan Amount: ₹ 1 Lakh

Tenure: 20 Years

Interest Rate: 8.60% per annum

EMI: ₹ 874

So his calculation would be:

₹1,00,000 x 15,000(savings)/874=₹17.16 Lakh (approx.)

So, now you can clearly see, how the calculation of the applicants took place. Akash is eligible to get the higher loan amount here. And, this is how usually the lenders calculate or decide the loan amount eligibility of the applicants.

# Benefits & Types of Home Loan Calculator

A home loan calculator would include the eligibility calculator, interest calculator or EMI calculator and the amortization calculator. With the help of these calculators, an individual can know each and every detail of the loan he/she has taken. The advantage of using these calculators is that you get to know your loan affordability with the help of which you can take the right decision.

In this article, you will get the little description of each of the above-mentioned calculators:

**EMI Calculator:**

A home loan EMI calculator is also popular with the name interest calculator. It is the tool that is used to calculate the monthly installments of the loan. The major advantage of using a calculator is that you get accurate results instantly. Other than the accuracy, you get the advantage of knowing in advance, not only the EMIs or the equated monthly installments but also the total interest outgo and the total amount (principal+interest). This tool takes into account the following details:

- Loan amount
- Tenure
- Interest rate

On the basis of the above data, this calculation tool would give you the details of the EMI, Total Interest Outgo, and Total Amount. For instance, if you are taking a home loan with the below details:

- Loan amount- ₹20 lakhs
- Interest rate- 8.50% p.a.
- Tenure- 20 years

The payment details will be as follows:

- Monthly EMI- ₹17,356
- Total Interest Outgo- ₹21,65,552
- Total Amount (Interest + Principal)- ₹41,65,552

The calculator is easy to use and gives accurate results within few seconds. Hence, it is time-saving and customer-friendly both. Also, there are n number of online EMI calculator for home loan available in the market that you can use according to your convenience. Most importantly, the calculator gives you the option to check the monthly installments n number of times before applying. With the help of this, you can change your mind if you find the loan out of budget instead of getting stuck with a decision that might not be so pocket-friendly. Also, it is important to note that the calculators do the calculation without adding the processing fees. As you know, there is a certain processing fee included other than the interest rate which is generally 1-2% of the principal amount. So, if you will know the monthly installments, you can add the processing fees into it and then take the right decision.

**Amortization Calculator:**

An amortization calculator is interconnected with the EMI calculator. The difference between an interest calculator and amortization calculator is that the first one is used for the calculation of monthly installments and the second one tells you the annual interest outflow at the end of your tenure. In simple terms, for the above loan details, the amortization table would tell you the detailed information for each year until the 20 years of tenure. It will give you the details of the principal, total interest outflow and the balance amount of each year.

The importance of this calculator is that it gives the borrower the idea about the future payments he/she will have to make and if possible he/she can initiate the foreclosure process and close his/her loan.

**Eligibility Calculator:**

The eligibility calculator is the calculator that helps the applicant know his/her loan eligibility. Since the interest rate and the loan amount that an applicant get on a particular loan are subject to change from lender to lender and from an applicant to applicant. Having said that, the eligibility calculator takes into account the following details:

- Type of employment
- Monthly salary
- City

After you will fill up the above details, you will get the list of options that you are eligible for. You can check your eligibility with the help of the home loan eligibility calculator as per your convenience and profile in just a few seconds.

**Crux of the advantages of using calculators:**

- Time-saving
- Accurate results
- Flexible Options
- Comparison facility
- Convenient

Thus, it is quite clear that different types of calculators have different benefits and the usage. So, using these calculators in is also the right thing before applying for a home loan.

# ICICI Bank Affordable Home Loans at Your Convenience

ICICI Home loan is a trusted brand name which is widely recognized by various customers. It offers a vast array of home loan products for the purpose of ready/under construction, residential property/construction of a residential property on own land. Other facilities encompass pre-approved home loan, step-up and balance transfer.

**ICICI Home Loan Interest Rate:**

For Women customers ICICI levies following interest rates :

**Floating Interest:**

- For loan amount upto ₹ 75 lakhs – 8.65% p.a.
- For loans amount to ₹ 75 lakhs to ₹ 5 crore – 8.70% p.a.
- For loans above ₹ 5 crore – 8.80% p.a.

**Fixed Interest Rate for 5 Years, 10 years:**

- For loan amount upto ₹ 30 lakhs – 8.70% p.a.
- For loans amount to ₹ 30 lakhs to ₹ 5 crore – 8.80% p.a.
- For loans above ₹ 5 crore – 8.90% p.a.

**Full Tenor Fixed Interest Rate:**

- For loan amount upto ₹ 30 lakhs – 9.70% p.a.
- For loans amount to ₹ 30 lakhs to ₹ 5 crore – 9.80% p.a.
- For loans above ₹ 5 crore – 10.05% p.a.

For Salaried & Self-employed borrowers except Women ICICI charges following interest rates:

**Floating Interest:**

- For loan amount upto ₹ 75 lakhs – 8.70% p.a.
- For loans amount to ₹ 75 lakhs to ₹ 5 crore – 8.75% p.a.-8.85% p.a.
- For loans above ₹ 5 crore – 8.85% p.a.(for self-employed borrowers)

**Fixed Interest Rate for 2 Years, 3 years:**

- For loan amount upto ₹ 75 lakhs – 8.70% p.a.
- For loans amount to ₹ 75 lakhs to ₹ 5 crore – 8.75% p.a.–8.85% p.a.
- For loans above ₹ 5 crore – 8.85% p.a.(for self-employed borrowers)

**Fixed Interest Rate for 5 Years, 10 years:**

- For loan amount upto ₹ 30 lakhs – 8.75% p.a.
- For loans amount above ₹ 30 lakhs – 8.85% -8.95% p.a.

**Full Tenor Fixed Interest Rate:**

- For loan amount upto ₹ 30 lakhs – 9.75% p.a.
- For loans amount above ₹ 30 lakhs – 9.85%-10.10% p.a.
- For Weaker-section borrowers (Scheduled Caste/Scheduled Tribe) ICICI charges following interest rates:

**Floating Interest:**

- For loan amount upto ₹ 28 lakhs – 8.65% p.a.

**ICICI Home Loan Eligibility:**

- The borrowers home loan eligibility for home loans should fall in the category of salaried employees/self-employed professionals/self-employed non-professionals(businessmen).

- The minimum age limit of the borrower should be 18 years and less than 70 years at loan maturity.

**The processing fee ranges 0.50% – 1.00% of the loan amount or Rs. 2000/- whichever is higher + applicable Service Tax & Surcharge.**

**The applicable prepayment charges are :**

- No charges applied for Home Loans and Home Improvement Loans with floating rate of interest
- 2% plus applicable taxes on balance principal amount on full repayment for Home Loans with a fixed rate of interest.
- 2% plus applicable taxes on balance principal amount on full repayment for Home Loan Top- Up loan if the applicant or co-applicant is Non-Individual.

**4% plus applicable taxes on principal outstanding where loan is sanctioned to Non- Individual borrowers or with fixed rate of interest to Individual borrowers. If the loan is approved prior to March 1, 2011, then prepayment charges would be 2% plus applicable taxes.**

**ICICI Home Loan Calculator:**

Home Loan EMI is the amount payable to the borrower as a repayment towards their borrowed loan amount to finance your home. EMI is calculated subject to the borrowed amount, sanctioned rate of interest and loan tenure.

**ICICI Home Loan Documents:**

Common documents are required to be submitted by Salaried/Self employed professional/Self-employed non-professional(businessmen):

- Duly signed application form along with photograph
- Identity, Residence and Age proof-Any 1 (Aadhaar Card, PAN Card or Election Identity Card)
- Last 6 months bank statements
- Last 3-months salary slip
- Processing fee cheque
- Form 16/Income Tax Returns

Apart from the other documents, there are other documents which need to be submitted by both self-employed professional/self-employed non-professional(businessmen):

- Educational qualification certificate and proof of business existence
- Last 3 years Income Tax Returns with computation of Income
- Last 3 years CA Certified/Audited Balance Sheet and Profit & Loss Account

Other documents need to be submitted by Self-employed professional :

- Proof of business existence
**Business profile**

**ICICI Home Loan Customer Care:**

If you have any questions or doubts about prevailing interest rates on home loan products or know more about scheme related information, contact an experienced customer care personnel on :33667777 / 44455000(Mumbai).

# Low Home Loan Interest Rates- Key to an Enjoyable Stay at Your Dream Home

The key to a successful home loan journey lies in the economy at which you service the debt.With the economy, it is referred to low-interest rates on a loan. When the interest rate is higher, the flow from your pocket will be that much more and vice-versa. And since it is about the home loan, which is taken for a longer period of 20-30 years, you need to be even more thoughtful as any negligence on the interest rate can make a deep hole in your pocket.

The selection of a lender with attractive interest rates can go a long way in making your stay at home comfortable and enjoyable.

**Types of Interest Rates:**

Home loan interest rates are offered on both floating and fixed basis, with the former being the most preferred one. Because it gives you the chance to leverage on the favorable market conditions to reduce the cost of your borrowing.

However, depending upon the repo rate changes, the interest rate on a floating rate home loan can either go up or down. If you can opt for a floating rate loan even at the expense of upside interest rate risks in the case of adverse condition, you would more or less emerge as a winner in the long-term. But for those who are unwilling to take the risk, fixed rate home loan is the way forward as the interest rate here will remain the same in the entire loan tenure, which means a fixed amount of EMI will be payable each month.

**Interest Rate Changes in Response to MCLR Variation:**

The conception of Marginal Cost of Lending Rate (MCLR) is attributable to the inadequate response to the cut in repo rate, the rate at which the commercial banks borrow from the Reserve Bank of India (RBI), by the central bank.

When the repo rate reduces, the banks receive cheaper loans from the RBI and vice-versa. The RBI had cut repo rate by 150 basis points (100 basis points= 1%) from Jan 2015 to April 2016. Surprisingly, the banks slashed their lending rates to just 60-70 basis points during the period, not even half of the benefit transmission to the borrowers.

So, in order to ensure effective transmission of rate cut benefits to the borrowers, the MCLR mechanism came to the fore and is applicable to floating rate home loans disbursed on or after 1st April 2016. Loans before the said date come under base rate regime.

If you belong to the base rate and want to take advantage of the rate cuts, switch to MCLR. But there is a condition that once you shift to MCLR, you can’t get back to the base rate.

**How is MCLR Calculated?**

Based on the factors below, MCLR is calculated by commercial banks in India.

- Operating Expenses
- Cash Reserve Ratio
- Tenor Premium
- Marginal Cost of Funds

The good thing about MCLR is the equated change in the effective lending rate of the lender. Nowadays, when the RBI cuts repo rate, the banks do make a change in their MCLR, decreasing your borrowing cost.

**Home Loan Interest Rates of Major Lenders:**

**State Bank of India (SBI)- **9.10%-9.60% p.a. (women) – 9.15%-9.65% p.a. (others)

**HDFC Bank- **9.15%-9.75% p.a. (women) – 9.20%-9.80% p.a. (others)

**ICICI Bank- **9.15%-9.45% p.a. (women) – 9.20%-9.50% p.a. (others)

**Axis Bank- **9.35%-9.45% p.a. (floating) **– **11.75% p.a. (fixed)

**Punjab National Bank (PNB)- **9.30%-11% p.a.(floating) – 9.25%-11.25%p.a.(fixed)

**Bank of Baroda (BoB)- **9.05%-9.55% p.a.

# From Low Interest Rates to Easy Processing- A Home Loan is Exciting and Thrilling

Each one of us desires to buy a home one day. And to do it, you can avail a home loan from banks and non-banking financial companies. The home loan journey starts with you selecting a property to buy from the real estate developer or builder. The moment you choose the property, the next thing that you must do is to navigate through the home loan offers of lenders. While checking the offers, the focus should be on the interest rate, the amount of loan available, the eligibility criteria, EMIs, etc.

Home loan is available to buy a new home, resale flat, under-construction property, purchase of a plot for home construction, along with home renovation & extension. The loan tenure for each of these varies.

For buying the flat be it new or old, you can get a home loan for a tenure of 20-30 years. However, the tenure comes down to 15 years in the case of home renovation or extension.

**Housing Loan Interest Rates:**

The housing loan interest rates are based on both floating and fixed rates. With a floating rate mechanism, the lenders will keep changing the MCLR based on the market conditions, resulting in up and down of the lending rates from time to time. With fixed rates, the interest rate on a home loan will remain the same throughout the tenure of a loan.

The interest rate on a home loan ranges from 9.10%-13% p.a. across banks in India. Look below to find the home loan interest rates of major lenders in India.

**State Bank of India (SBI)**– 9.10%-9.65% p.a.

**HDFC Bank- **9.10% p.a.

**ICICI Bank- **9.10%-9.15% p.a.

**Axis Bank- **9.10% p.a.

**Bank of Baroda**– 9.05%-9.55% p.a.

**Punjab National Bank (PNB)**– 9.30% p.a.

**Eligibility Criteria:**

Home loan eligibility or to say housing loan eligibility is an important consideration in your quest for a dream home. Though eligibility criteria differ from one lender to another, more or less it is similar to the points below.

- Your age should be a minimum of 18 years at the time of application.
- You should not be over 70 years by the time loan is set to mature.
- The earning must be sufficiently higher and can easily accommodate the applicable EMIs on a loan.
- You should be working in a public or private sector firm, or doing the business for about 2-3 years to get the nod for a home loan.

**Home Loan EMI Calculator:**

Even though you have 20-30 years to repay the home loan, you still need to know the EMI amount in advance for an easy and pleasant stay at your house. It is because of the money management you can do if you are aware of the EMIs payable.

If you know the amount of loan that you can get from the lender, the calculation of EMI gets easier via the calculator. You just need to enter the loan amount, interest rate and tenure of the loan to compute the monthly installments that include a portion of interest and principal amount.

**Documentation Required in Home Loan:**

You need to be ready with a list of documents shown below.

**Application Form** Along with Photographs

**Identity Proof**– Aadhaar Card/Voter ID/PAN Card/Passport

**Residence Proof**– Latest Electricity & Telephone Bill/Passport/Property Tax Receipt/Aadhaar Card/Voter ID

**Business Establishment Proof (For Self-employed Applicants Only)**– Service Tax/VAT/Sales Tax Registration/Electricity & Telephone Bill of Shop

**Income Proof- **For Salaried Applicants**–**Salary Slips of Last 3 Months, Form 16

**For Self-employed Applicants-** ITR, Profit & Loss A/C Statement & Audited Balance Sheet for Last 3 Years

**Property Documents- **Sale Deed, Agreement of Sale

**Bank Statement**– Last 6-month Statement Required