Investing in a home is a life time investment. Property (land) is an appreciating asset and with financial discipline one can purchase their home sooner than expected. Various banks offer flexible and hassle-free loans at affordable rates, nowadays it is much easier for the salaried common man to own a house.
RBL Bank is one of India’s top emerging scheduled commercial banks offering various services including Home loans. The home loan interest rates at RBL Bank are ranging from 10.20% to 11.55%.
In this article, we are going to see all possible aspects related to RBL Bank Home Loan.
|Loan Amount||RBL Bank Home Loan Interest Rate|
|Upto Rs. 25 Lakh||10.20%|
|Rs. 25 Lakh – 75 Lakh||11.55%|
|Rs. 75 Lakh – 2 Cr||11.55%|
|Above Rs. 2 Cr||11.55%|
You definitely want to ensure that your lender provides auto-adjusted benefits on interest rates that extends into the future. That’s the reason why you need a credible lending institution with a dedicated and experienced workforce who will guide you through the entire process.
Features of RBL Bank Home Loans
- Yes Bank Home Loans are available for both salaried and self employed.
- Special rates for women customers.
- Home Loans granted to age group between 24 to 60 years.
- Security: Generally Mortgage of property you are planning to purchase, renovate or construct.
- Loan to Value Ratio is 90%.
- Tenure of loan is between 5 to 25 years.
- Interest rates range from 10.20% to 11.55%.
- EMI of Rs. 923 per lakh
So, are you ready to buy a house?
If the answer is YES, you must be having a lot of questions in your mind like:
- Where will I arrange the money from?
- Am I eligible for the loan?
- How much down payment do I have to do?
- How much EMI will I need to pay every month?
- How can I compare the EMI of different banks on my own?
- Where will I arrange the down payment amount and EMI amount from?
Let’s understand this with a simple example:
Let’s assume, you want to invest in a new apartment and give it a brand new interior. You do this to tenant the apartment as an additional source of income for you and your family. Obviously the cost factor will be a notch higher. To be able to afford your dream abode, you need to check with RBL bank’s Home loan options. Assume you sum up the cost of the apartment with interiors to Rs. 1 crore.
Now, you decide to pay off the entire loan in 10 years. With so many many banks offering loans at competitive prices, it’s likely you would be confused. A Home Loan EMI calculator will come in handy in a situation like this so you can check and compare the best deal.
The next critical question is about the initial down payment?
The simplest option you have is to approach any relative or friend. But if you want to arrange it on your own then you must really think smart and be calculative in your decision. A great way is to begin is to use ClearTax Save!
You have options like Savings account, RD (Recurring Deposit), SIP (Systematic Investment Plan) and many other ways to save enough funds for the initial down payment.
Let’s find out the best way to save your money in 3 years, for down payment, interiors and for other expenses:
|Loan Value||1 crore|
|Time||10 yrs. (120 months)|
|Down payment||20% of loan value = 20,00,000|
Now, consider the different scenario of saving your money from now for these 3 years:
|Savings Account||6%||Rs. 21,96,244 (Gains = 1,96,244)|
|Recurring Deposit||7%||Rs. 22,31,257 (Gains = 2,31,257)|
|SIP||14-18%||Rs. 2665813 (Gains = 6,65,813)|
Hence from the above table SIP is the most worthwhile saving’s scheme; as an SIP, will enable you to invest regularly, keeping in mind your long term goal of owning yourself a designer dream home sooner than you expected.
Home Loan EMI Calculator, how does it work?
An EMI Calculator is an e-tool that calculates the monthly amount payable to the lender (Bank) every month. To calculate the EMI applicable on your loan amount, you need to use the sliders above to adjust the values of the Principal amount (P), Time duration (N), and Rate of interest (R).
Follow these steps to calculate your EMI Amount.
- Use the slider for Selecting Loan Amount
- Select the Loan tenure in Months using the slider
- Move the slider and select the Interest Rate
- Recalculate your EMI anytime by changing the input sliders
- EMI will be calculated instantly when you move the sliders
Parameters to decide Interest Rates:
RBL Bank Home Loan will have criteria on which interest rates depend and vary. The loan amount you are opting for, your occupation and your salary are the factors that will determine the interest rates for you.
- Loan amount: It primarily depends on the loan amount you apply for. Higher the loan amount, lesser will be the interest rate
- Your Salary: Income helps you in identifying your rate of interest. Higher the income, lesser will be the rate
- Type of loan opted for: Bank offers differential rates for women borrowers and the interest rate vary between fixed or floating rate schemes. The rate of interest may be higher or lower under their special or popular loan product offers.
It is generally advantageous to take a housing loan as it will allow you to get tax exemptions. However, you must consult your CA/ income tax advisor to know the benefits/disadvantages in your specific case.
Eligibility criteria mentioned by the bank is different for different category of applicants, for example, salaried professionals and self-employed individuals. Each category shall meet the criteria to become eligible for the RBL bank home loan.
To become eligible for RBL Bank home loan the eligibility standard must be matched. That becomes an important deciding factor for your loan amount. Instances like:
- Salaried, Self- Employed Professional or a Businessman
- Number of dependents
- Co-Applicants Income
- Assets, Liabilities, Stability, and Continuity of Occupation of the borrower
- Savings History
Further, the loan eligibility will also be dependent on the value of property selected by you.
The deciding factor of the loan amount that would be granted to you will be the close assessment of the value of the property, the capacity to repay the loan amount and many others to determine the potential borrowers. So, an eligibility calculator can be used for the same.
Some of the key eligibility factors are listed below:
|Interest Rate||10.20% – 11.55%|
|Age||24 – 60 years|
|Job Stability in case of Salaried (in years)||2 years|
|Loan to Value Ratio||Up to 90%|
In addition to the mentioned interest rates, home loan also carries the processing fee, foreclosure charges, actual charges towards valuation fee, advocate’s fee for property search, title investigation report, stamp duty and other charges that are applicable.
Let’s discuss some charges in detail:
- Processing Fee – RBL Bank charges minimum processing fee of Rs. 5000 and maximum of Rs. 15,000.
- Technical and Legal Charges – RBL Bank also charges technical and legal fees which differ with time according to the criteria.
- Prepayment Charges: If you decide to foreclose or transfer your housing loan to another bank, you need to submit an application for the same to RBL Bank and follow RBI rules, which states nil charges on floating rate home loans.
Process of Applying
Follow these steps to get a hassle-free RBL Bank Home loan:
- Go to RBL Bank website or you can go meet the loan relationship manager/executive at the branch. Processing Fee is between Rs.5,000 – Rs. 15,000
- Submit the application form with all supporting documents
- Bank will send you the sanction intimation
- Applicant needs to submit the property related documents
- Bank’s legal and technical teams will review and then would confirm the home loan
- Finally, the loan will be disbursed
- The whole process would take around 15-20 days
Documents required to apply for a home loan from AXIS Bank are as follows:
|Document Needed||Salaried||Self Employed|
|Proof of identity||Valid passport / Voter ID / Valid Driving license with photograph /Pan card /Aadhar card||Valid passport / Voter ID / Valid Driving license with photograph /Pan card /Aadhar card|
|Proof of Income||Latest 3 months salary slip/certificate for fixed salary/Latest Form 16
Last 6 months bank statement/Passbook of the salary account
|IT- returns for the last 2 years along with computation of income certified by CA
Last 6 months Bank statement for operative account both personal and business.
|Proof of Residence||Latest Electricity Bill/utility bill/ piped gas bill/ telephone bill (Not more than 2 months old)/ Passport/Aadhar card/ Voter ID/ Driving License.||Latest Electricity Bill/utility bill/ piped gas bill/ telephone bill (Not more than 2 months old)/ Passport/Aadhar card/ Voter ID/ Driving License.|
RBL Bank Tax Benefits
The income tax laws in India provide certain benefits for taxpayers who avail a home loan. Such taxpayers are eligible for a deduction of the interest paid on such house property to the extent of Rs 2 lakhs. In case of a self-occupied house in the particular Assessment Year (AY) they can claim the entire interest paid during the AY as a deduction without any limit, that is if they have given the property on rent.
Further, the principal component of such loan repayment can be claimed as a deduction from the total income under Section 80C, up to a maximum of Rs 1.5 lakhs.
Similar Banks Offering Home Loans:
|ICICI Bank||Kotak Bank||HDFC Bank||Axis Bank|
|PNB Bank||Andhra Bank||Corporation Bank||Union Bank|
|IDBI Bank||Yes Bank||Bank of India||CitiBank|
|HSBC Bank||Central Bank of India||SBI||Home Loan Tax Benefit|