INSUBCONTINENT EXCLUSIVE:
Top banks increased their marginal cost of funding-based rates this month, among other lendersState Bank of India (SBI), HDFC Bank and ICICI
Bank hiked their MCLR or marginal cost of funding-based rates this month, among many other banks
MCLR is generally referred to as the minimum lending rate below which a bank cannot lend
With that move, EMIs of loans such as home loans also increased
While increasing the lending rate by 10 basis points across all tenors up to three years, ICICI Bank and HDFC Bank raised the MCLR by the
same margin in select tenors.SBI home loan interest rateSBI currently charges an interest rate of 8.45-8.55 per cent from salaried women
borrowers for home loans (term loan) up to Rs 30 lakh
For other borrowers, the rate is 8.5-8.6 per cent, according to SBI's website on home loans - homeloans.sbi
Under the non-salaried category, SBI charges an interest rate of 8.6-8.7 per cent for home loans up to the same amount from women borrowers,
and 8.65-8.75 per cent from other borrowers
The interest rate, according to SBI, is based on the customer's LTV (loan-to-value) ratio
LTV ratio determines the ratio of amount of loan compared with the property value
For example, the higher the LTV, the higher the EMI buy, the lower the down payment required.SBI charges an amount equal to 0.35 per cent of
the loan amount as processing fee for home loans, subject to a minimum of Rs 2,000 and a maximum of Rs 10,000, according to the bank's
website.HDFC Bank home loan interest rateFor salaried individuals, HDFC Bank currently charges an interest rate of 8.5 per cent for ARHL or
adjustable rate home loan from women borrowers, and 8.55 per cent in case of other borrowers
For self-employed individuals, the bank charges an interest rate of 8.55 per cent for loans granted to women borrowers, and 8.6 per cent
from other borrowers, according to its website - hdfcbank.com
"The rates above are variable in nature and linked to HDFC's RPLR (Retail Prime Lending Rate) and shall fluctuate according to the movement
in the same," HDFC Bank explained.ICICI Bank home loan interest rateICICI Bank charges an interest rate of 8.55 per cent for home loans
granted to salaried women borrowers
For other salaried buyers, the bank has set an interest rate of 8.6 per cent.Under the self-employed category, ICICI Bank charges an
interest rate of 8.7 per cent for loans granted to women borrowers, and 8.75 per cent in case of other borrowers, according to the bank's
website - icicibank.com.ICICI Bank charges a processing fee of an amount equal to 0.5 per cent of the loan amount plus the applicable
service tax, according to the bank's website.Meanwhile, the Reserve Bank of India (RBI) earlier this month hiked the repo rate - the key
rate at which it lends short-term funds to banks - for the first time in four-and-a-half years.Banks currently follow an MCLR-based method
for setting lending rates, wherein they calculate the benchmark lending rate by using the cost incurred on incremental deposits, not average
