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How are Home Loan Interest Rates Determined

 Borrowers should possess a thorough knowledge of the key factors influencing home loan interest rates in India before applying for this credit option. Thanks to the easy availability of home loans, people can now fulfil their dreams of owning a home. Furthermore, the high-value loan amount and the competitive home loan interest rates have made this credit facility popular among homebuyers in India. The monthly instalments and borrowing costs are significantly impacted by interest rates. Therefore, borrowers should possess a thorough knowledge of the key factors influencing  home loan interest rates in India before applying for this credit option. How Do Financial Institutions Determine the Home Loan Interest Rates Lending institutions consider the following factors while determining the home loan interest rates for a particular borrower: Location of the property The property’s location also impacts the interest rates on a home loan. If a property is located in a posh location with am
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RBI hikes key interest rate by 35 bps on 07 Dec 2022

 Fight against inflation remains major concern, growth forecast is lowered to 6.8 pc from 7 pc this fiscal says RBI. Reserve Bank of India Governor Shaktikanta Das announces the bi-monthly monetary policy, Wednesday, Dec. 7, 2022 hiked the key policy rate, the repo rate or the rate at which the RBI lends funds to banks, by 35 basis points to 6.25 per cent in a bid to rein in retail inflation. What impact will the RBI’s decision have? Lending rates of banks are expected to go up as the cost of funds is expected to rise further. EMIs on vehicle, home and personal loans will also rise. The external benchmark linked lending rate (EBLR) of banks will rise by 35 bps — one basis point is one hundredth of a percentage point— as such loans are linked to the Repo rate. As much as 43.6 per cent of the total loans are now linked to the Repo rate. Marginal cost of funds-based lending rates ( MCLR ), which accounts for 49.2 per cent of the loans portfolio of banks, are also expected to move up. The
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SBI Cards shares up 0.78% as Nifty gains

 SBI Cards and Payment Services Ltd. traded 0.78 per cent up in Monday's trade at 12:28PM (IST). Around 123,822 shares changed hands on the counter. The counter opened at Rs 810.0 and touched an intraday high and low of Rs 818.0 and Rs 805.4, respectively, in the session so far. The stock of  SBI Cards  and Payment Services Ltd. quoted a 52-week high of Rs 1028.75 and a 52-week low of Rs 656.1. Total market cap of the SBI Cards and Payment Services Ltd. stood at Rs 76658.91 crore at the time of writing this report. Key Financials The company reported consolidated net sales of Rs 3453.32 crore for the quarter ended 30-Sep-2022, up 5.84 per cent from previous quarter's Rs 3262.85 crore and up 28.12 per cent from the year-ago quarter's Rs 2695.46 crore. The net profit for latest quarter stood at Rs 525.64 crore, up 52.4 per cent from the same quarter a year ago. Shareholding pattern As of 30-Jun-2022, domestic institutional investors held 11.34 per cent stake in the firm, whil
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TSSC partners with SBI Card for placement-linked skill development courses for women

 The centre is set to provide National Skills Qualifications Framework (NSQF) and National Curriculum Framework (NCF) aligned short-term courses in telecom service job roles. Telecom sector skill training provider TSSC on Monday said it has partnered with SBI Cards and Payment Services for placement-linked skill development courses to train 763 women over the next two years. Under this partnership, Telecom Sector Skill Council (TSSC) has launched a telecom centre of excellence (CoE) at the Government College for Girls Gurugram under a CSR initiative for women empowerment. The project will cater to 763 candidates over the span of two years beginning from September this year, the statement said. “The CSR project under this collaboration will be a pertinent boost in skilling the female youth and help them inculcate the spirit of self-reliance to explore new job roles. This crucial partnership with SBI credit Cards for CSR is yet another step forward to drive equality of opportunity for
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SBI all loan's EMI set to rise as lender hikes interest rates

State Bank of India (SBI) has raised the marginal cost of funds-based lending rate (MCLR) by 15 basis points across tenors, making most consumer loans costlier for borrowers. The benchmark one-year MCLR, which is used as base for fixing most of home loans , auto and personal loans , has been raised by 10 basis points (bps) to 8.05 percent, as against 7.95 percent earlier. Why are loans impacted by RBI's decision? Generally, when RBI hikes the repo rate, it increases the cost of funds for banks. This means that banks will have to pay more for the money they borrow from RBI. Consequently, banks pass on the cost to borrowers by increasing their loan interest rates, making EMIs costlier. As a result, both new and existing borrowers witness an increase in their loan interest rates.
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SBI Offers Discounts On Interest Rate on Home Loans For Festive Season 2022

SBI is offering a concession of 20 basis points to borrowers with CIBIL scores of 700-749, which is almost 8.55 per cent, instead of the normal 8.75 per cent. State Bank of India (SBI)’s festive offers are here! Since the festive month is approaching, the biggest lender in India is also in a jolly mood and is offering concession of 15 basis points to 30 basis points on its sbi home loans . While the offer is seemingly lucrative for many buyers, it is only available from October 4, 2022 to January 31, 2023. While the normal interest rates on SBI home loans range from 8.55 per cent to 9.05 per cent, under the lender’s festive offers, these rates are expected to be lower and must be checked from the bank itself. In addition to this, SBI is also offering zero processing fees on its regular and top-up home loan plans. But, in order to reap benefits of these offers, a person’s CIBIL score will matter. SBI Top-Up Home Loan Rates For this festive season, SBI is offering 1.5 basis points conc
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HDFC hikes lending rate by 50 bps; EMIs to go up

  Leading housing finance provider HDFC Ltd. upped its lending rate by 50 basis points on Friday after the Reserve Bank of India (RBI) hiked the policy repo rate by 50 basis points (bps) to 5.9% in its Monetary Policy Committee (MPC) held on Friday. In the last five months, HDFC has implemented a total of seven rate hikes. "HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 50 basis points, with effect from October 1, 2022," the company said in a statement. The  interest rates on home loans  are available from HDFC Limited starting at 8.10% p.a. This interest rate is applicable to loans for purchasing a new house, balance transfers, home renovations, and home expansions. The above-mentioned home loan interest rates are flexible during the loan's term and are determined by HDFC's benchmark Rate ("RPLR"). Both new and existing borrowers will now be required to make EMI paymen
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