Impact of RBL Bank Home Loan Interest Rate on Your Repayment
A dream home does not come easy as it requires years of savings and discipline to make it happen one day. Apart from that, you also need to search the property that comes to your budget, as well as the lenders that can provide you the loan to buy a home. Talking of the lenders, RBL Bank is one of the top choices to make. It offers a home loan to buy, construct, renovate and extend the housing units. But what about the interest rate? Is RBL Bank Home Loan Interest Rate affordable enough? Well, you can check the same in this post. What is RBL Bank Home Loan Interest Rate? RBL Bank Home Loan Interest Rate is now based on the RBI Repo Rate following the mandate of the central bank to link the rate to an external benchmark. The interest rate comes with a spread over the benchmark across the loan amounts. The repo rate, as of now, stands at 5.15%. Loans upto ₹25 lakh come at an interest rate of 10.30% (inclusive of 5.15% spread). On the other hand, loans above ₹25 lakh to ₹75 lakh and above ₹75 lakh come with an interest rate of 11.65% each. Both come with a spread of 6.50%. How Will the RBL Bank Home Loan Interest Rate Impact Your Repayment? The rate will have a major bearing on your repayment. It will decide greatly the monthly installment you will be paying to the lender. Greater the rate the more the EMI you will pay and vice-versa. The role of the interest rate is not limited to EMI alone. In fact, it goes on to tell you the amount of interest you’ll pay to RBL Bank over the course of a loan. You can check the RBL Bank Home Loan EMI Calculator to assess the same. Is RBL Bank the Right Choice for a Home Loan? If you speak of the interest rate, it is a bit more than what other lenders such as State Bank of India (SBI), HDFC Limited, ICICI Bank and a few more are charging. While SBI charges an interest rate of 8.15%-8.80% per annum across the loan amounts, the other two HDFC Limited and ICICI Bank charge 8.25%-9.30% and 9.20%-9.65%, respectively. So, in terms of interest rates, RBL Bank doesn’t come anywhere near to match these top lenders. Maybe the loan processing could be much faster at RBL Bank.