Home loan

Revised home loan rates: Axis Bank, LIC Housing Finance, Bajaj Housing Finance increase rates; Check here

[ad_1]

Private lenders, such as Axis Bank, LIC Housing Finance, Bajaj Housing Finance, have announced an increase in their lending rates. While Axis Bank increased its marginal cost of lending rate (MCLR) last week, Bajaj Housing and LIC increased its prime lending rate (PLR) by 50 basis points (bps), which is effective since 22 august. Most lenders have increased loan rates. after the Reserve Bank of India (RBI) changed its repo rate to 50 basis points earlier in August in a bid to fight inflation. Over the past three months, RBI has raised the repo rate by 140 basis points – in May by 40 basis points, 50 basis points in July and 50 basis points in August. This has pushed home loan rates across banks, as with rising rates banks tend to pass their burden on to investors to maintain balance.

1. Axis Bank
Private sector lender Axis Bank increased its MCLR last week by 5 basis points, which would make interest on all loans expensive. The rates have already been in effect since August 18. According to a notification issued by the bank, the MCLR rate for one month is now 7.85%; for three months, it is 7.95%; 8% for six months.

The current rate of home loans for Axis Bank varies between 8.10% and 8.45% per annum for employees. The maximum duration is 30 years. The interest rate for women is 8.10%. The interest rate is a little higher for the self-employed and is between 8.20% and 8.55%. According to the bank’s notification, the interest rate for individuals would depend on their credit score and the product they choose.

Interest rates on home loans

For employees

Type Repo Rate + Spread Effective interest rate
Floating rate Repo rate + 2.70% to Repo rate + 3.05% 8.10% – 8.45% per year
Fixed rate All loan amounts 14% per year

For the independents

Type Repo Rate + Spread Effective interest rate
Floating rate Repo rate + 2.80% to Repo rate + 3.15% 8.20% – 8.55% per year
Fixed rate All loan amounts 14% per year

2. LIC housing finance

The mortgage lender has raised its prime rate by 50 basis points, rates will now start at 8%. Until last week it was 7.50%. For LIC Housing Finance, the LIC Housing Prime Lending Rate (LHPLR) is the reference rate, and all mortgage rates are linked to it. The new rates come into effect on August 22, 2022. The lending rate mainly depends on the CIBIL score and the type of product that investors opt for.

Also Read: How RBI’s Inflation Control Measures Are Sending Home Loan EMIs North

For a CIBIL score of 700 or above, the interest rate on an amount up to Rs 50 lakh will be 8.05% for salaried individuals and professionals. In the same CIBIL score bracket, the interest rate is 8.25% for home loans ranging from Rs 50 lakh to Rs 2 crore. The interest rate for an amount of Rs 2 crore to Rs 15 crore is 8.40%.

For those with a CIBIL score of 600 to 699, the interest rate for an amount up to Rs 50 lakh will be 8.30%, for an amount between Rs. 50 lakh and up to Rs. 2 crore, the interest rate is 8.50%, while for an amount between Rs. 2 crore and Rs. 15 crore, the interest rate is 8.65%.

For investors who have a CIBIL score below 600, the interest rate varies from 8.75% to 9.15% depending on the mandate. The rates are a bit higher for the self-employed and range between 8.15% and 9.25%.

The maximum repayment period for the salaried class has been set at 30 years, while for the self-employed it is 25 years. According to the official LIC Housing Finance website, the revised interest rates are floating and tied to the LHPLR, which currently stands at 15.80%.

Salaried professions and liberal professions:

CIBIL score Rising Interest rate
Rating > 700 Up to Rs. 50,000,000 8.05%
More rupees. 50 lakh and up to Rs. 2 crore 8.25%
Between Rs. 2 crore and Rs. 15 crore 8.40%
Score of 600-699 Up to Rs. 50,000,000 8.30%
More rupees. 50 lakh and up to Rs. 2 crore 8.50%
Between Rs. 2 crore and Rs. 15 crore 8.65%
Score less than 600 Up to Rs. 50,000,000 – 8.75%
More rupees. 50 lakh and up to Rs. 2 crore 8.95%
Between Rs. 2 crore and Rs. 15 crore 9.15%

Independents

CIBIL score Rising Interest rate
Rating > 700 Up to Rs. 50,000,000 8.15%
More rupees. 50 lakh and up to Rs. 2 crore 8.35%
Between Rs. 2 crore and Rs. 15 crore 8.50%
Score of 600-699 Up to Rs. 50,000,000 8.40%
More rupees. 50 lakh and up to Rs. 2 crore 8.60%
Between Rs. 2 crore and Rs. 15 crore 8.75%
Score less than 600 Up to Rs. 50,000,000 – 8.85%
More rupees. 50 lakh and up to Rs. 2 crore 9.05%
Between Rs. 2 crore and Rs. 15 crore 9.25%

3. Bajaj housing finance
Bajaj Housing Finance also raised its interest rate by 50 basis points. The lowest interest rate now starts at 7.70% for employees. For independent candidates, interest rates start at 7.95% based on variable rates.

Type of loan Home loan
Interest rate type Floating
Employed individuals 7.70%-14.00%
Self employed 7.95%-14.00%

[ad_2]
Source link