Indiabulls Housing Finance has raised the lending rates recently for men and women with 25 and 20 basis points, respectively. With the hike, the starting rate has gone up to 8.70%-8.80% per annum for a loan worth up to ₹35 lakhs.
Now, the hike in rate can spread like wildfire and may lead to a confusion among the masses whether they can realize their home dream in the given context. Well, for that, you need a detailed view of Indiabulls Home Loan Interest Rate. You can see that and more in this article.
How Much is Indiabulls Home Loan Interest Rate Now?
The rate of interest would depend on the quantum of finance being serviced. So, a loan worth up to ₹75 lakhs can be offered in the range of 8.70%-10.05% per annum. On the other hand, the loan amount between ₹75 lakhs and ₹3 crores is offered at 8.95%-10.80%. Loans above ₹3 crores would be serviced at 9.05%-10.95% p.a. The rates mentioned here are variable in nature and so are subject to change based on the market movements.
Does The Rate Soften When Given on Fixed and Variable Basis?
The loans are fixed for only two years and get converted into a variable basis after the said period. Loan amount of up to ₹75 lakhs can be serviced at 9.25%-10.30% per annum. Loans more than ₹75 lakhs to ₹3 crores and above ₹3 crores can be given at 9.35%-11.05%.
The rates offered on both fixed and variable basis are more than when offered on a floating basis only.
Indiabulls Home Loan EMI Calculator
Now as the rates are out, it becomes easier on your part to calculate the monthly installments applicable to a loan. The rate of interest is a key determinant to the amount of EMI, which is a short form of Equated Monthly Installments. If the rates are on the higher side, the EMI amount will be more and vice-versa. Apart from the interest rates, the loan amount and tenure also determine the amount of installment. So, you need to bring all these and put them in the calculator available online to calculate the installment, which combines both interest and principal portions. And since the interest forms a part of the EMI, you can also see the amount of interest you are most likely to pay till the time the loan runs.
Should You Check Indiabulls Home Loan Amortization Schedule?
When using the home loan EMI calculator online, you can get a view of the amortization schedule as well. The schedule not only shows the principal and interest repayments over the years but also the outstanding balance of the loan every year. Although there can be a slight variation over time due to the fluctuation in rates, you can still take the schedule as a base to prepare a prepayment strategy. To help you prepay before the original loan tenure and save a barrage of interest, it’s imperative to choose the right savings or investment. Depending on your risk appetite, you can choose from equity mutual funds, fixed deposits, Public Provident Fund (PPF) to accumulate a surplus to pay before time. To balance the situation, it’s advisable to go with a mix of savings and investments to offset the possible fall in returns in one with the rise in another.