IndusInd Bank Home Loan Interest Rate

Interest Rates on IndusInd Bank Home Loans

The interest rates on IndusInd Bank ranges between 8% - 15%, it depends on the prevalent base rate as declared by RBI. There is typically a margin added to the base rate and accordingly loans are advanced to individuals and corporates. The base rate applicable is 10.8% p.a. The MCLR (Marginal cost of funds-based lending rate) is also taken into consideration while arriving at the home loan interest rate for the applicant.

Factors that influence the interest rate on Home Loans from IndusInd Bank

These are main factors which affect the interest rate on home loan from IndusInd Bank –

• Credit score

  Credit score of the applicant indicates the credibility of the individual. The higher the credit score, the better is the position of the applicant to negotiate a lower interest rate. Credit score is arrived at based on credit report which reflects the credit history of the applicant.

• Home location

  The interest rates applicable for different home locations is different. There will be difference between vendors on the interest rates for home loans. Home loans applied for from rural areas is likely to be extended at lower interest rate and home loans applied in urban locations will be extended at higher interest rates. Also, within these regions depending on the location, the interest rates may differ. Further, the banks or lending institutions will also differ the interest rates.

• Property value and loan value

  The loan value would depend on the home price and closing costs reduced by the down payment. The closing costs and mortgage insurance can be included in the home loan depending on the policy of the lender. The property value would determine the loan value and interest rates, the value would vary based on the location of the property.

• Down payment

  A higher down payment would reduce the loan value, and this would typically influence the interest rate. Typically, the banks would lower the interest rates by few basis points for larger quantum of loan and longer tenure. For a lower value loan, the interest rates would be slightly higher.

• Interest rate type

  Interest rate can be either fixed or floating rate. The fixed rates will typically be higher than the floating rate, floating rate will depend on the existing market base rate and would keep varying depending on the market interest rate.

• Income level

  The income level of the applicant would determine the ability of the borrower to repay the loan. If the income level is higher, the interest rates are likely to be lower relative to a borrower whose income levels are lower. This is due to the fact that the bank is likely to have higher risk in the case of the latter and lower in the case of the former.

How to calculate Home Loan equated monthly installment (EMI)?

EMI for home loan can be calculated using the EMI calculator available on the official website of the bank. The EMI is calculated by entering few details such as – property value, down payment amount, loan value, interest rate and tenure. Using the online calculator is the easiest means to arrive at the EMI value which needs to be laid out on a monthly basis. Alternatively, one can use the calculator or excel to draw up the home loan EMI schedule. The numbers so arrived are only indicative and may not be the actual values that one eventually has to pay. The amount payable on monthly basis would depend on the prevalent market interest rates and the interest rate at which the home loan is extended.

There are other vendors such as CreditMantri who also have a home loan EMI calculator on their website, which will provide accurate monthly outlay required for the loan value, interest rate and tenure entered in the tool. The tool also shows a detailed breakup of the principal component and interest component. The vendor also enables calculation of EMI across various lenders (banks) based on the interest rate offered by the respective lenders. This will help choose the right lender with competent interest rates. CreditMantri will also help the aspirant with the application and documentation process.

IndusInd Bank Home Loan overview

IndusInd Bank offers a suite of home loan products in association with HDFC Ltd. The products promoted by IndusInd Bank are thus trusted and competent in the market. Home loan offered by IndusInd Bank can be availed for the following purposes –

• Purchase of new house – buy or construct a house
• Home improvement – modify/upgrade existing amenities & thereby increase the life of the assets
• Home extension – expand/add space to the existing house
• Top - up housing loans – Have an existing property & want to borrow against the same to fund – higher education, marriage, medical expense etc.

Features and benefits of Home Loan offered by IndusInd Bank

The key features and benefits of IndusInd Bank housing loan are –

• Wide range of Home loan products
• Doorstep service with fast & easy processing of loan application
• Transparent dealing with no hidden charges
• Simplified documentation
• Attractive Home Loan
• Balance transfer facility
• Funding up to 30 years of tenor

Applying for Home Loan with IndusInd Bank

The home loan can be applied online. The application form can be generated online and filled. It can be submitted for further processing. The application form will be accessed by the relevant executives to assess if the applicant matches the eligibility criteria. Based on the eligibility and credibility of the applicant, the loan will be approved. The home loan processing also involves due-diligence of the property to be bought by the applicant. Often, the property builders (especially in the case of apartments) will associate themselves with certain banks. These banks will provide the loan without due-diligence, since they would have already conducted the same while partnering with the builder of the property.

Alternate to the online application, the applicant can also visit the nearest branch and the customer care representative will help the individual through the entire process.

IndusInd Bank Home Loan eligibility

Individuals who wish to apply for home loan with IndusInd Bank should fulfill the basic eligibility criteria as prescribed by the bank. The basic eligibility criteria for applying for home loan with IndusInd Bank are –

• Applicant should have a regular / established source of income
• Applicant should be identified as salaried individual, self-employed professional or self-employed businessman
• Applicant should apply for home loan either as a single applicant or jointly along with a family member
• Applicant should be a resident Indian

IndusInd Bank Home Loan documentation

Below is the list of documents required for availing home loan from IndusInd Bank

Frequently asked questions: IndusInd Bank Home Loan Interest Rate

1. Who can apply for home loan from IndusInd Bank?

Salaried individuals, self-employed professionals, and self-employed businessmen can apply for home loan from IndusInd Bank

2. How is the interest rate on home loan determined in IndusInd Bank?

The factors which influence the interest rate on home loan include - credit history, income of applicant, loan amount, loan tenure, and the bank’s internal policies and the applicable market interest rates at the specific time (which influences the base rate declared by RBI).

3. What repayment options are available with IndusInd Bank?

The EMI can be repaid by any of the following means –

• Cheques
• Standing instructions at local branch
• Internet Banking
• Automated Payment through ECS
• Mobile Banking

4. What are the types of interest rates available for home loans extended by IndusInd Bank?

Home loans can be with either fixed interest rate or floating interest rate or hybrid interest rate.