Pre-payment charges: -up to 2% from Balance Transfer’s side-NIL from own source
Processing Fees: 0.50% of loan amount + service tax
Floating Interest (Base Interest)
Fixed Interest (Base Rate + 0.50%)
Any Loan Amount
9.60% + 0.50% = 10.10%
Pre-payment charges: up to 4% of principal outstanding
Processing Fees: up to 2.50% of loan amount + service tax
As you may already know there are various types of interest rates that banks play upon, and they have two ways in which these interest rates are calculated-
Flat rate of interest
Reducing rate of interest
The flat rate of interest also known as fixed rate of interest has a fixed interest rate based upon the initial principal amount. So, even if the overall principal amount is reduced over the years, you still pay a fixed interest till the very end.
However, in the Reducing rate of interest type, the interest is calculated on the pending principal amount. So, as the principal amount keeps reducing, the interest keeps reducing as well and you end up paying less.
Applying for a home loan is a huge investment, an agreement that usually lasts for a couple of years. It is not something one should overlook. And while there are many banks available such as Axis, Tata Capital, India Bulls, DHFL, Federal, Aditya Birla and many more, it can get quite confusing to figure out the best home loan rates. Home loan lenders use a simple method to calculate the principal and interest, however the interest rate calculation and other minor details can make a huge difference. So it’s advisable to compare home loan rates with CreditNation’s proficient team that makes the selection process very simple by providing you a detailed layout plan of what each bank has to offer based on your requirement, and also helping you understand what each clause stands for.
CreditNation Can Get Your Interest Rates as Low As 9.10%!
Whether you wish to opt for fixed or floating rates, or you want low EMI’s, or you wish for nil prepayment rates, we at CreditNation can get you the best home loan interest rates in India.
Other benefits that CreditNation brings to you are: