House Building Loan

Hosing Loan Interest would fall very soon…! The government has announced public sector banks would soon introduce a package for those seeking home loans. Presently banks and housing finance firms are charging between 12% and 14% for fixed-rate home loans and offering between 9.5% and 11.75% for floating rate home loans. But the latest measures announced by RBI has started easing the cost of funds for the banks following which they are expected to decline the interest rate further.

"Public sector banks will shortly announce a package for new borrowers for home loans in two categories -- for loans of up to Rs 5 lakhs and Rs 5-20 lakhs".

The government pointed out that there is a large unmet demand for housing in the country, especially for middle and low income groups. The demand in residential segment has declined in the last six months on account of high interest rates on housing loans and steep rise in property prices during last two to three years.The government highlighted the RBI's decision to provide refinance facility of Rs 4,000 crore to National Housing Bank.

Under the scheme, home loans up to Rs 5 lakh will be offered at a rate of around 7% while those above Rs 5 lakh and up to Rs 20 lakh will be granted at around 8%. We hope that the reduction of interest rates shall be effect for old customers also.

Housing Loan - Floating Interest Rates

Banks / Institutions	5 Years		10 Years		15 Years		20 Years
Allahabad Bank	9.75	2113	10.25	1335	10.5	1105	10.75	962
Bank of Baroda	10.25	2138	10.5	1350	10.5	1106	10.75	1016
Bank of Rajastan	11.5	2199	10.75	1421	12	1200	12.5	1137
Canara Bank	10.25	2137	10.5	1350	10.75	1121	10.75	1016
Central Bank of India	9	2075	10	1321	10	1074	10	965
Dena Bank	10.5	2150	11	1378	11.25	1153	11.25	1050
Indian Bank	9	2075	9.25	1278	9.5	1042	10	962
Indusind Bank	11.25	2187	11.25	1392	11.5	1168	11.5	1066
Oriental Bank	10	2125	10	1321	10.25	1153	10.25	-
State Bank of India	9.75	2113	10	1321	10	1074	10.25	-
Syndicate Bank	10	2125	10.5	1349	10.75	1121	11	1032
Vijaya Bank	9.25	2088	10	1322	10.25	1090	10.75	1016
Can Fin Homes Ltd	8.5	2200	11.5	1406	11.5	1169	11.75	1067
GIC Housing Ltd	10.75	2162	11.25	1392	11.5	1134	10.95	1084
HDFC	11.75	2212	11.75	1421	11.75	1185	11.75	1084
HUDCO	10.5	2200	10.75	1322	-	-	11	1032
LIC Housing	11	2174	11	1377	11	1137	11	1032
PNB Housing	11.75	2212	11.75	1421	11.75	1185	11.75	1315
Sundaram BNP	12.5	2250	12.5	1464	12.5	1233	12.5	1137

Housing Loan - Fixed Interest Rates

Banks / Institutions	5 Years		10 Years		15 Years		20 Years
Allahabad Bank	11.25	2187	11.75	1420	12	1200	12.5	1090
Bank of Baroda	11	2175	11.25	1392	11.5	1169	-	-
Bank of Rajastan	12.5	2249	12.75	1478	13	1265	13.5	1207
Canara Bank	11.25	2187	11.25	1392	11.25	1152	11.25	1049
Central Bank of India	10	2125	-	-	-	-	-	-
Dena Bank	11.25	2187	11.75	1421	11.75	1185	11.75	1084
Oriental Bank	11	2175	11	-	11.25	1152	11.25	1049
State Bank of India	12	2224	12	1435	-	-	-	-
Vijaya Bank	9.5	2101	10	1322	-	-	-	-
Can Fin Homes Ltd	14	2327	14	1553	14	1332	14	1244
GIC Housing Ltd	11.5	2200	12	1435	12.5	1233	13	1172
HDFC	14	2327	14	1553	14	1332	14	1244
HUDCO	-	-	-	-	-	-	13	1172
LIC Housing	13.5	2300	13.5	1523	13.5	1298	13.5	1207
PNB Housing	13.75	2314	13.75	1538	13.75	1315	13.75	1226

Hence, calculation starts…!