Loan Against Property Interest Rates

Indiabulls Home Loans offers customers competitive interest rates that will make it easier to own a home of choice. We understand that interest rates have a big influence on your repayments – lower interest rates translate into lower EMIs. That’s why, we offer attractive interest rates across tenures, helping you afford your dream home without a major impact on your monthly financials. Our rates and charges are transparent and depend on a variety of factors including your profile, tenure, loan amount and property type.

How are home loan interest rates determined?
Lenders charge interest on the amount they give you as a home loan, and these interest rates keep changing from time to time. Interest rates depend on various factors, principally on Reserve Bank of India’s (RBI’s) monetary policy. RBI decides on general interest rates depending on the state of the economy, inflation and so on. If the inflation rate is high, the RBI may decide to raise interest rates to reduce demand and hence prices. If economic growth is slackening, the bank may lower interest rates to give a boost to business. Thus, the interest charged by home loan lenders will depend on the RBI policy, and the cost of funds. Lenders need to borrow funds from the public, which they lend to takers of home loans. The difference between the lender’s cost of borrowing and interest rates charged to home loan borrowers is called the spread, which is the lender’s profits.

Why is the rate of interest on loans important?
It’s important to know exactly how much interest you are paying, because over the tenure of the loan of 15 to 30 years, interest payments could form a considerable sum. Even a percentage difference will mean a huge sum over time. And longer the tenure, the higher the interest payments you need to make.

What is the difference between fixed and floating interest rate?
There are two options with regard to interest rates on home loans. One is the fixed rate option and another is floating rate. Under fixed rate, the interest rate that you pay remains constant. In floating rate, the interest you have to pay will vary according to the prevailing rate at the time. So, if you think that interest rates will be higher in the future, you could opt for a fixed rate loan. However, lenders usually charge a higher rate for fixed rate housing loans – usually between 1 percent and 2.5 per cent more. In many cases, the fixed rate may be only for a few years, and not the entire tenure of the loan. So, you have to be careful about the choices you make. Of course, you can always transfer a home loan to a different lender if you don’t like the terms offered. Indiabulls Home Loans offers attractive interest rates, and you can do a balance transfer to us at any time.