Are you planning to take home loan? Know how much interest will be charged in government and private banks.
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Home Loan: Buying your own house is everyone’s dream. But, with this inflation, it takes your entire life’s money to buy or build your own house. In such a situation, most of the people take the help of banks in this. There are many benefits of buying a house by taking a loan from the bank. Firstly, its burden does not fall directly on you. Second, the bank verifies the property before giving the loan. This also helps to know whether there is any kind of dispute on your property or not. The loan EMI is gradually deducted and after a period of time your property becomes free-hold. In such a situation, if you are also planning to take a home loan, then you should know about the interest rates on home loans offered by government and private banks. This will help you in choosing the institution for loan.
government bank interest rates
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State Bank of India: Home loans are easily made available to the customers by the country’s largest government bank, State Bank of India (SBI). The bank offers interest rates from 8.40% per annum on the loan amount.
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Punjab National Bank: PNB offers home loans in two categories. It gives loans at least to its salaried customers at an interest rate of 8.50% per annum and to non-salaried customers at the rate of 8.8%.
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Bank of Baroda: Bank of Baroda has in recent times made the dream of owning a home of a large number of customers come true. The bank is offering home loan at an interest rate of 8.40% per annum.
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UCO Bank: UCO Bank is providing fast home loan facility to the customers. Besides, it also provides the facility of topup after home loan. Presently the bank is giving loan at the interest rate of 8.45% per annum.
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Bank of India: Home loan is being given by Bank of India at the rate of 8.30 percent per annum.
,Data Source: Bankbazaar.com,
Interest rates on home loans in private banks
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HDFC: HDFC, the country’s largest private bank, is offering special home loans to its customers at the rate of 8.50 percent, while standard home loans are being given at the rate of 8.75 percent.
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ICICI: ICICI Bank’s home loan interest rate is currently the highest. The bank is charging interest of 9 percent per year. However, there are many categories in it.
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Kotak Mahindra Bank: Loans are being given in two categories by Kotak Mahindra Bank. The bank is giving loans at an interest rate of 8.7% per annum to salaried people and 8.75% per annum to non-salaried.
,Data Source: Bankbazaar.com,
How to calculate interest on home loan?
Home loans are long term loans. You can calculate the interest amount applicable on your home loan by using any home loan EMI calculator. This facility is available online for free. For this you have to fill the fields given on the calculator. Once the details are fed, you can click on the ‘Calculate’ button to get a detailed breakdown of your loan including the amount payable towards interest. In this you have to tell the home loan amount, loan repayment period, interest rate etc.
emi calculation formula
Alternatively, you can also use the following formula to calculate the EMI liability for your home loan-EMI = [P x r x (1+r)^n],[(1+r)^n-1] Whereas, P is the principal amount, r is the interest rate, and n is the number of installments or loan tenure in months.
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