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Buying a house is a huge financial decision, it requires substantial outlay of funds. Often, the entire funding may not be brought in by savings. In most cases, the house purchase project is funded by a home loan. It is important for the borrower to understand the financial responsibility which comes along with home loan. Buying a house is a financial and emotional commitment. From the perspective of home loan, it is a long term financial commitment. Home loans are extended by both banks and NBFCs (Non-banking financial corporations).

Ratnakar Bank Limited was established in 1943, it has its headquarters in Mumbai, Maharashtra. The bank has significant presence in Mumbai. The bank offers banking services across various categories – Corporate banking, Institutional banking, commercial banking, retail banking, agriculture and development banking and financial markets.

Types of interest rates on Home Loans

  • Fixed interest rate :

    The rate of interest is fixed before the loan is approved. This interest rate will remain fixed during the tenure of the loan. The fixed interest rate would be base rate + margin, it would differ among lenders. It is recommended that if the market interest rate is on an uptrend, the applicant should choose fixed interest rate. This will help locking the interest rate at a certain level over the tenure of the loan or at least till the period of revision as per bank policy.

  • Floating interest rates :

    The interest rates in the case of floating interest rate is linked to the prime lending of the bank. This prime lending rate is affected by repo rate. Repo rate is the rate at which the bank borrows money from the central bank. This fluctuates based on the macro economic scenario of the economy. The advantage of the floating interest rate is that it tends to be a bit lower than the fixed interest rates.

Interest rates applicable on Home Loan with RBL Bank

Various interest rates are applicable depending on the type of home loan availed. The interest rates are as below –

Type of loanRate Range
Overdraft against property9.90% - 12%
Loan against Property9.8% - 13.5%
Home Loans9.75% - 10.5%
Salaried personal loan11.99% - 26%

Factors which influence the interest rate on Home Loan from RBL Bank

The key factors which influence the interest rate on home loan from RBL Bank are -

  • Credit score :
  • Credit score reflects the credibility of the applicant. The higher the credit score, the better is the applicants position to negotiate a favorable interest rate.

  • Income level and stability of income :
  • A higher stability of income and income level would indicate better position for negotiation of favorable interest rate.

  • Repayment capacity :
  • The repayment capacity would depend on the existing loans and other commitment in terms of investment and household expenses. The lower the commitment the higher will be the amount in hand for payment of home loan EMI, this would enable favorable / lower interest rate.

  • Quantum of loan :
  • A higher quantum of loan would enable negotiation of lower interest rate with the bank.

  • Type of applicant :
  • Typically, salaried applicants are preferred compared to self-employed professionals or businessmen. Salaried applicants who have a long-standing employment history and those employed with reputed employers are likely to gain favorable terms.

Types of Home Loans Offered by RBL Bank

There are various purposes for which home loans are used. RBL Bank also offers all these types of loans which are particularly popular among individuals.

  • Home Purchase Loan :
  • Loan that one takes for purchasing a home

  • Home Improvement Loan :
  • Loan covers expenditure related to repairs of your home or even renovation

  • Home Construction Loan :
  • Loan comes in handy when you are building a new house

  • Land Purchase Loan :
  • Used to buy a plot of land for constructing his/her own house

  • Home Extension Loan :
  • Used to add another room, garage, bathroom or kitchen, add another floor to your home

  • Joint Home Loan :
  • Loans taken by two people or even more

  • Home Loan Balance Transfer :
  • Use this mechanism to switch existing outstanding loan amount to a different lender with better terms and conditions and lower interest

  • Top Up Home Loan :
  • This kind of loan helps one to borrow some more money above the outstanding loan amount.

Features of Home Loan from RBL Bank

The key features of home loan extended by RBL Bank are –

  • Home Loans of upto Rs.10 Crores
  • Flexible tenure of upto 25 years
  • Minimal documentation and faster approvals
  • Easy Home Loan available wherein you can save interest by maintaining balance in a linked account

Eligibility criteria for availing Home Loan from RBL Bank

Eligibility criteria for availing home loan from RBL Bank are -

  • Home Loan can be availed by salaried Individuals, self-employed individuals and self-employed professionals
  • Home Loan can be offered to Indian residents only

Salaried Individuals

  • Minimum net income of Rs.1,20,000 per annum
  • Minimum age at loan sanction – 24 years & maximum age at loan maturity – 60 years or super-annuation whichever is early
  • Work experience of minimum 1 year at current job and 2 years of total experience. If current job is less than 1 year, then 3 years of total experience required

Self-Employed Individuals and Professionals

  • Minimum net annual income as per latest year ITR / Financials of Rs.150,000
  • Minimum age– 24 years & maximum age – 65 years
  • Business continuity of last three years in the same field

Documentation required for availing Home Loans from RBL Bank

There are various documents required for availing home loan, the process however, is simple and convenient. The customer care executives of the bank are available to help the applicant to complete the documentation process with minimal hassle. The documents required for availing home loan from RBL Bank are as mentioned below –

List of proofs and general documents required -

  • PAN Card : For Individual / Partnership Firm / Company
  • Identity Proof : Any one (e.g. Voter ID / Driving License / Passport)
  • Address Proof : Any one (e.g. Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill / Registered Lease Deed or Sale Agreement / Bank Statement)
  • Business Continuity Proof : Any one document dated 5 years old (Bank Statement / Sales Tax Challans / IT Returns / Shops & Est. Certificate / COI / Partnership Deed)
  • Passport Size Photographs
  • strong Any other valid Photo ID card issued by central or state government

List of financial documents required -

For Salaried

  • Last 2 years Income tax returns or Latest 3 month salary slip or Latest form 16 issued by the employer

For Self-Employed Individuals

  • Latest audited ITR and financials for the last 2 years (Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.)
  • Bank statements from the borrower's main account/s for last 6 months and 3 months of all other bank accounts mentioned in the balance sheet

For Self-Employed Professionals

  • Latest audited ITR and financials for the last 2 years (Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.)
  • Bank statements from the borrower's main account/s for last 6 months and 3 months of all other bank accounts mentioned in the balance sheet
  • Professional qualification certificate and Degree certificate for professionals (Doctors, Architects, Chartered Accountants etc.)

Methods to apply for a Home Loan with RBL Bank

Applicant can submit the home loan application either online or offline.

Offline – The applicant can go to the nearest RBL Bank branch and get the help from the customer care executives or helpdesk to apply for the loan. The application along with passport size photographs along-with the documents supporting them needs to be duly submitted to process the loan application.

Online – The official website of RBL Bank has a link which will take the applicant to the relevant page. The applicant has to fill in the details and make an e-submission along with scanned copy of the documents. The bank’s executive will get in touch and visit the applicant to verify the documents. The loan will be processed further accordingly after authenticating the documents.

Vendors like CreditMantri can help the applicant choose the right home loan which suits their needs and offers the best terms. It also aggregates only those lenders where the applicant will qualify for home, thereby reducing the chance of loan rejection. Any loan rejection could potentially lead to significant drop in credit score which could hurt the stance of the applicant. The applicant will be unable to negotiate the best terms with respect to interest rates.

Frequently asked questions for availing home loan from RBL Bank

1. Who can avail home loan from RBL Bank?

Home loan can be availed by resident salaried Individuals, self-employed individuals and self-employed professionals

2. How can the EMI payment be made in RBL Bank?

The options for repayment available with RBL Bank are – cheques, standing instruction with relevant bank branch, internet banking, automated payment through ECS, mobile banking etc.

3. What is the range of interest rate on home loan at RBL Bank?

The home loan interest rate ranges between 9.75% to 10.5%.

4. What are the interest rate types available on home loan at RBL Bank?

The types of interest rates available on home loan at RBL Bank are – fixed interest rate, floating interest rate and hybrid interest rate.

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