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Home loan interest rates and EMI in top 15 banks, in October 2021

Kunal Kumar | 2021-10-19

Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in October 2021, to help you make the right choice.

The real estate market is witnessing a surge in demand, supported by the RBI’s supportive policy rate posture. In spite of a continuous surge in the petroleum prices, the RBI maintained an accommodative stance on policy rates during the monetary policy committee (MPC) meeting on October 8, 2021. Furthermore, the RBI also lowered the inflation forecast for FY 2021-22 from 5.7% to 5.3%. The RBI also kept the outlook of 9.5% GDP growth in the FY 2021-22.

The RBI’s stance came as a huge relief for the entire realty sector, which was looking for support just before the start of the festive period. Several banks slashed their interest rates as festive offers and some banks also waived off their processing fees completely. The interest rate on home loan has come down to as low as 6.5% per annum.

The good financial performance of the realty sector in the first two quarters raises hopes for a quick revival. Several listed realty stocks are now trading at their all-time highs, indicating return of investors’ confidence towards them.

In the coming weeks, the interest rate trend is expected to remain stable around the current level. The RBI’s policy rate stance could, however, change, if the US Fed starts tapering as indicated in their meeting earlier this month. If you are planning to buy a home on loan, you should grab your deal before the interest rate trend changes. However, you should be ready to pay increased EMIs in future.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years’ tenure.

Home loan interest rates and EMI in top 15 banks, in September 2021
Looking for the best home loan product, to fund the purchase of your dream home? Housing.com News looks at the interest rates, EMI and processing fees offered by the major banks in September 2021, to help you make the right choice

September 17, 2021: With the festive season 2021 around the corner, the good news is that COVID-19 cases have significantly decreased in the last few months. Banks have started coming up with offers, such as discounts on home loan interest rates and zero processing charges. The interest rate has come down to as low as 6.5% per annum and the real estate sector has been buoyed by the much-needed growth push due to increased participation from home buyers.

India’s Consumer Price Index (CPI), i.e., the retail inflation rate in August 2021, fell to 5.3%, close to a four-month low level. Easing retail inflation will support the RBI to continue with an accommodative stance, when it comes to the policy rate decision. This means, the interest rate may remain at the current level in the coming months, unless there is any sudden spike in inflation. The COVID-19 third wave is anticipated to hit during October to November 2021. A surge in COVID-19 cases could spoil the recovery of the Indian economy, as well as the revival plan of the realty sector.

It is a good time for home buyers to book their homes in the coming festive season and tap the offers given by the developers and the banks. Some banks have reduced their interest rate on home loans, as part of their festive offer, whereas some banks have reduced or completely waived off their processing fees. The home buyers should stick to their needs while buying a home and consider festive offers as secondary benefits that must not distract them from making the right decision.

To make the selection of a home loan product more comfortable for the home buyers, we have presented the interest rate range, EMI and processing fees by various banks, in the table given below. The EMI has been calculated based on a loan of Rs one lakh for a tenure of 20 years. You can easily calculate the EMI for the desired amount, by multiplying the loan amount (in Rs lakhs) with the EMI range corresponding to the selected bank mentioned in the table. For example, the interest rate mentioned for Central Bank is 6.85%-7.3% per annum and the corresponding EMI for Rs one lakh is Rs 766-Rs 793. Now, if you want to calculate the EMI for Rs 30 lakhs, then, simply multiply the EMI with 30, i.e., Rs 766 x 30 or Rs 793 x 30 = Rs 22,980 to Rs 23,790 per month (approximately), which would be the EMI for 20 years’ tenure.