PNB Housing Finance offers home loan interest rates based on the credit score of the applicant. For example, suppose the applicant has an excellent credit score of more than 800 and is a salaried employee. In that case, the current interest rate on a home loan at PNB Housing Finance is 7.35%.
PNB Housing Finance has a handy EMI calculator to help you find the EMIs for different loan amounts. Let’s calculate the EMI for a home loan of Rs. 25 lakhs for 15 years at 7.35%.
|
Loan Amount |
Rs. 25 lakhs |
|
Tenure |
15 years |
|
Interest Rate* |
7.35% |
|
Per month EMI |
Rs. 22,963 |
|
Total Interest Payable |
Rs. 16,33,290 |
|
Total Repayment (Principal + Interest) |
Rs. 41,33,290 |
*Note that for this calculation, we have considered the lowest interest rate offered by the bank. The actual interest rate will depend on your credit score, your employment status and the loan amount.
Let’s calculate the EMI for the same loan at the highest interest rate: 9.55%
|
Loan Amount |
Rs. 25 lakhs |
|
Tenure |
15 years |
|
Interest Rate* |
9.55% |
|
Per month EMI |
Rs. 26,181 |
|
Total Interest Payable |
Rs. 22,12,597 |
|
Total Repayment (Principal + Interest) |
Rs. 47,12,597 |
Final Thoughts
As you can see, having a good credit score reduces your home loan interest rates significantly. This, in turn, reduces the total interest payable, which lowers the loan burden considerably. So, it's highly recommended that you work on improving your credit score before you apply for a home loan to enjoy significant savings.
Suggested Reading: What is a good credit score and tips to maintain it