Here is some good news for first time home loan borrowers. Union Budget 2013 has increased the interest exemption limit on home loans from Rs 1.5 lakhs to Rs 2.5 lakhs.
However, the problem is that if you are going to have an interest of Rs 2.5 lakh on home loans you would have to reduce your tenure. So, make sure you take home loans for a shorter duration.
Here is a ready reckoner on the cheapest home loan rates offered by banks. Look out for processing and other fees though.
Click to know benefits of the Home loan.
| Home Loan Interest Rates
|Bank Name||Interest rate (Floanting Rate)||Processing Fee||Prepayment Charges|
|State Bank Of India||9.95%||Up to 25 lacs : 0.125% of loan amount minimum Rs.1000/- 25-75 lacs : Rs.3,250/- 75 & above : 5,000/-||Nil|
|ICICI Bank||Scheme I :10.25% (Fixed 1 yr) Scheme II : 10.25% (Fixed 2yrs) Scheme III : 10.50% (Fixed 3yrs) then 10.25%||0.50% of loan amount upto 1 crore||N.A|
|HDFC Ltd||10.15%||0.5% or maximum 10,000+service tax (12.36%)||No prepayment charges shall be payable for partial or full prepayments irrespective of the source|
|HSBC Bank||10% to 13%||1% of the loan amount applied for, subject to a minimum of Rs 10000 plus service tax.||Nil|
|LIC Housing||Scheme I : 10.25% (Fixed for 2 yrs)
Scheme II : 10.70% (Fixed for 3 yrs)
|Up to 50 lacs : 10,000 +(Service tax)
50 lacs & above : 15,000 +(service tax)
|AXIS Bank||10.25% (Upto 25 Lacs), then 10.50%||1% of the Loan Amount||Nil|
|IDBI||10.25%||Up to .50% of loan amount||If Balance Transfer then 2% Otherwise Nil|
|Indian Bank||10.20%||Waived upto 31-03-2013||Nil|
|Standard Chartered||9.99% (Upto 25Lacs), then 10.40%||Rs.7500/- + Service tax||Nil|