Home loans are one of the biggest financial obligations that we all face in our lifetime. Most people opt for a home loan to finance their dream home since it is not always feasible to purchase a home outright. However, when opting for a home loan, the interest rates play a significant role in the overall cost of borrowing.
So, what are the latest home loan interest rates, and what do they mean for a borrower? In this article, we will take a closer look at everything you need to know about the latest home loan interest rates.
Latest Home Loan Interest Rate
The home loan interest rates are set by the Reserve Bank of India (RBI), and it changes frequently based on market conditions. Currently, the latest home loan interest rate is fixed at 6.70% to 7.25% per annum.
The interest rate is important because it determines the amount of interest that you will have to pay on the principal amount borrowed. The higher the interest rate, the higher will be your payable EMI for a 1 crore home loan.
EMI for a 1 Crore Home Loan
EMI or Equated Monthly Installment is the amount that you need to pay each month towards the repayment of the loan. The EMI for 1 crore home loan depends on the loan tenure and the applicable interest rate.
For a home loan of 1 crore, let us assume a loan tenure of 20 years, and the interest rate is 7%. The EMI for this will be approximately INR 79,999. On the other hand, if the interest rate is 7.25%, the EMI will be INR 80,654.
As you can see, even a slight change in interest rates can have a significant impact on the EMI payable for a 1 crore home loan.
Home Loan Eligibility
To avail the home loan, a borrower needs to meet certain eligibility criteria. The criteria vary from lender to lender, but some of the basic eligibility criteria are:
- Age: The borrower should be minimum age criteria of 21 years and maximum of 60 years at the time of loan maturity. For salaried individuals, the age limit is 65 years.
- Income: The borrower should have a regular income source and meet the minimum income criteria set by the lender.
- Credit score: The credit score of the borrower is an important factor for loan approval. A higher credit score indicates a better creditworthiness of the borrower, which increases the chances of loan approval.
Housing Loan
A housing loan is same as a home loan but is often used interchangeably. A housing loan is a type of loan that is given to individuals for the purpose of purchasing or constructing a residential property. The loan amount depends on the cost of the property and the borrower’s eligibility criteria.
The housing loan interest rates and conditions are same as home loans. However, some lenders may offer additional benefits and offers to homebuyers in certain cases.
Conclusion
In conclusion, the latest home loan interest rates play a significant role in determining the overall cost of borrowing. It is important to keep an eye on the latest interest rates to make an informed decision about your home loan. The EMI payable for a 1 crore home loan depends on the loan tenure and the applicable interest rate.
Before opting for a home loan, make sure you meet the eligibility criteria set by the lender. Additionally, do thorough research and compare offers from different lenders to get the best deal for yourself.
