Rbl Bank Home Loan

How to apply home loan from RBL Bank under Pradhan Mantri Awas Yojana (PMAY)?

First of all, you apply for home loan from RBL Bank and along with your loan application, you need to fill the Pradhan Mantri Awas Yojana (PMAY) Form and submit it with your loan application form with the bank. Bank will take care of its processing. Bank will check your eligibility and if you are eligible in the category you have applied for like EWS/ LIG/ MIG-I/ MIG-II, then accordingly the interest subsidy would be credited in your bank account.

(3) RBL Bank Balance Transfer of Home Loan : This scheme enables a customer to transfer home loan from any other institution to RBL Bank.

You can pay off any existing balance of home loan with RBL Bank Home Loan Balance Transfer at a lower rate of interest. Retain your home on terms and conditions that suits your needs.

You can also top-up the existing loan to get ready cash for any of your needs.

Avail RBL Bank Home Loan Transfer, if:

• You are trying to reduce your interest rate and lower your payments
• Willing to reduce your home loan term to pay off your loan faster
• You want to use the equity in your house to get money for any of your needs

Important Features:

1. Customer should satisfy the eligibility criteria for availing Home Loan as per RBL Mahindra Bank 's instruction
2. Customer has serviced interest and/or instalment of the existing loan regularly, as per the original terms of sanction
3. Customer should have valid documents evidencing the title to the house/ flat
4. Security: Equitable| registered mortgage of the property. If mortgage is not feasible, bank at its discretion can accept security in the form of Insurance Policies, Govt Promissory Notes, Shares and Debentures, Gold Ornaments etc.
5. Interest Rates:

   Loan Amount	Interest Rate (p.a.)
   Upto Rs. 25 Lakhs	10.45%
   Above Rs. 25 Lakhs	11.80%

Tax Benefits of availing Home Loan

There are two types of tax benefits associated with home loan for Resident Indians:

Repayment of the Principal Amount: One can get a Tax rebate under section 80C of the Income Tax Act on whole amount repaid by him in a financial year, maximum upto Rs. 1,50,000/- each financial year (Increased from 1 Lakh to Rs. 1.5 Lakh in Budget 2014).

Repayment of the Interest on Home Loan: Tax Benefit on Home Loan for payment of Interest is allowed as a deduction under Section 24(1) of the Income Tax Act. One is eligible for a Tax Rebate of maximum of Rs. 2 lakh per financial year for home loan interest paid by him/her during that financial year.

What is the Impact of MCLR on EMI of RBL Bank Home Loan Borrowers?

After April 1, 2016, all bank loans (including home loans) are linked to the bank's MCLR with or without a mark-up or spread (bank margin). Earlier, they were linked to the bank's base rate. All banks are required to disclose their MCLR each month.

Banks generally hike MCLR, whenever there is a hike in Repo Rate by the RBI. Banks may increase MCLR due to surging bond yields and higher provisioning requirements, even when the RBI has not hiked Repo Rate.

Home Loan Interest Rate can be equal to the MCLR or have a 'margin' or 'mark-up' or 'spread' but can never be lower than MCLR.

"Home Loan Interest Rate is linked to the bank's MCLR. If MCLR goes up, the home loan rates will also go up. Home Loan Interest Rate will not be impacted by hike in MCLR only if banks reduce the mark-up (margin) in the home loan. If MCLR goes down, the home loan rates will also go down."

For MCLR-linked home loans, the rate is reset after 6 or 12 months according to the agreement between the borrower and the bank. The interest rate applicable on the reset date will become the new rate on which the future EMI's will be calculated.

What should Base Rate Home Loan Borrowers do?

Home Loan Interest Rate of old home loan borrowers (who had taken home loans before April 1, 2016) are linked to the base rates of the banks. Hence the EMI which they are paying is also linked to base rate. Banks have always remained very sluggish for passing on the benefits of RBI rate cuts to the borrowers.

Now after April 1, 2016, Home Loan Interest Rate is linked to MCLR (Marginal Cost of funds based Lending Rate) for home loan borrowers in order to resolve the problems of the Base Rate regime.

It will be beneficial for them to switch to MCLR linked rate if the difference between what they are paying (under base rate) and what the bank is offering (under MCLR) is significant. So they must switch to MCLR linked rates, if outstanding loan is high and the remaining tenure is also long.

In that situation, Base Rate Borrowers have following two options:

(1) Switch to MCLR linked home loan with the same bank: It is beneficial, in case the bank is charging a nominal switching fee such as 0.50% or less on outstanding amount.

(2) Transfer the loan to another bank on MCLR: It is feasible, if new bank has waived off processing fee (which they generally do in order to attract the customer and increase their business) or is charging very less processing fee and legal and transfer costs.

The borrower must compare both the above-mentioned options and opt for the one which is more beneficial to them in terms of money saved. It will result not only in reduction of future EMIs but also a huge amount of interest will be saved during remaining tenure.

One may as well continue the loan on base-rate especially if the maturity is near and need not go through the process of conversion.

Further, the Reserve Bank (RBI) is going to link the base rate for loans given by banks to the MCLR from April 1, 2018. Once it happens, the base rate will automatically increase or decrease along with the MCLR without any specific action required for adjustment. This will be very beneficial for the home loan borrowers whose rates (EMIs) are still linked to the base rate.

EMI Payment Methods of RBL Bank Home Loan

You can repay RBL Bank home loan in any of the following methods:

(1) Electronic Clearing Service (ECS): Electronic Clearing System is preferred for faster payments and collections. If you have an account with other bank than RBL Bank then you can use ECS for loan repayment. You will have to fill up a form and submit the same with your bank for debiting EMI every month from your account. In this case, your EMI will be automatically debited every month from your bank account and credited to RBL Bank towards loan repayment instalment.

(2) Standing Instruction (SI): If you maintain your account with RBL Bank, then you can use this method. Under this method, you will have to issue a Standing Instruction to RBL Bank to debit your EMI amount on a due date every month from your RBL Bank account and credit to RBL Bank loan account towards loan repayment instalment. You save a lot of time and energy by giving standing instructions to the bank to carry out the transaction on your behalf each time.

(3) Post-Dated Cheques (PDCs): In this method, you need to submit post-dated EMI cheques to RBL Bank for a certain period of time, which are deposited by the RBL Bank on the due date. This alternative is cumbersome and time-consuming and involve a manual procedure of visiting the RBL Bank in a timely manner.

Points to Note Regarding EMI Payment Methods

1. A fresh set of PDCs need to be submitted in a timely manner.
2. Post Dated Cheques are accepted only for non-ECS locations.
3. It is good to pay your EMIs either through the Standing Instruction or ECS for faster and timely remittance of your loan instalments.

In case of Prepayment of RBL Bank Home Loan, will EMI change?

One can pre-pay RBL Bank Home Loan without any prepayment charges as it allows prepayment at nil charges in case of floating rate home loans. If the borrower makes a prepayment, the outstanding balance of principal amount of his home loan reduces. Then in that case he has following 2 options:

1. He can continue with the existing and reduce the loan tenure
2. He can reduce the EMI and keep the loan tenure the same

Out of above 2 options, first option is more beneficial for the borrower as he pay less interest to the bank as the pay off home loan will be faster.

Ways to Reduce your RBL Bank Home Loan EMI

• Negotiate with your banker on lower interest rate
• Apply for longer tenure
• Give maximum amount as down payment
• Pre-pay loan amount
• Switch to another bank/ FI offering lower interest rate

Latest News on RBL Bank Home Loan

• January 22, 2020: RBL Bank has cut MCLR by 10 to 15 basis points across all maturities i.e. by 0.10% to 0.15%. Now its 1 Year MCLR Rate is 9.55%
• October 22, 2019: RBL Bank has lowered MCLR by 5 to 15 basis points across all maturities i.e. by 0.05% to 0.15%
• September 22, 2019: RBL Bank has cut lending rates by up to 15 bps across all maturities
• June 18, 2018: RBL Bank has raised lending rates by 5 to 20 basis points across all maturities i.e. by 0.05% to 0.20%
• May 1, 2018: ETMONEY ties up with RBL Bank to offer personal loans
• March 22, 2018: RBL bank has raised its MCLR by 5 basis points of all tenures
• January 23, 2018: RBL Bank profit up 28% but NPAs rise
• August 18, 2017: RBL Bank aims to maintain steady growth at the rate 30% to 35% till 2020
• September 22, 2016: Ratnakar Bank has reduced MCLR by 5 to 20 basis points across all maturities i.e. by 0.05% to 0.20%

RBL Bank Home Loan FAQ

1. What kind of property can I buy with RBL Bank Home Loan?

   RBL Bank Home Loan is available for purchase of Residential Property only.

2. Is it possible to transfer my existing loan to RBL?

   Yes. You can transfer your existing Home Loan from any other financier to RBL (Balance Transfer) and avail of additional refinance.

3. What is the Loan Amount as a proportion of the value of property?

   For loan amount of less than 20 lakhs the loan to value ratio is 90%. For loans between 20 lakhs and 75 lakhs the loan to value ratio is 80% while for loans greater than 75 lakhs the loan to value ratio is 75%.

4. Can I club my income with others to avail Home Loans?

   Clubbing of income is allowed between spouse and parents and also for the cases where one of the applicants is salaried and other applicant is self-employed, subject to maximum clubbing of income of three applicants. This clubbing of income will be allowed between individuals related to each other as defined in the bank's policy.

5. Will the loan eligibility be calculated only on the basis of income?

   Yes. The loan eligibility will be calculated depending on the value of the property being purchased and the income of the customer.

6. Is there an option to prepay Home Loans earlier? Are there any charges?

   There are no charges for pre-payment and foreclosure of floating rate home loans. For fixed rate loans charges are applicable as per the schedule of charges.

7. How can I save interest on my RBL Bank Home Loan?

   RBL Bank offers "Easy Home Loans" wherein the Home Loan is linked to a current account. The interest on the home loan is calculated after deducting the monthly average balance in the current account from the outstanding principal of the loan. If you maintain a good balance in the linked account then you can save interest on the Home Loan and reduce your repayment tenure.

8. Can I give standing instructions to repay my Home Loan EMIs directly from my RBL Bank Savings Account?

   RBL, you can opt for Automated Repayment and your EMIs will be directly repaid from your RBL Bank Savings Account, thus saving you the trouble of procuring, signing and tracking post-dated cheques.

9. What is Pre-EMI Option?

   Pre-EMI is an option in which the borrower has to pay only interest on loan amount during the progress on the construction of the project. The actual EMI payment will be started only after his/ her possessing the house.

10. What are the various interest rates offered on home loans?

    Interest rates offered vary for women borrowers and others. Women borrowers are offered home loan at lower interest rate in RBL Bank.

11. What is the eligibility criteria for getting RBL Bank home loan?

    The eligibility criteria for RBL Bank Home Loan is as follows:

    Basis	Salaried Customers	Non Salaried Customers
    Age	Minimum 24 years & Maximum 60 Years	Minimum 24 years & Maximum 65 Years
    Income	Regular source of income is needed	Regular source of income is needed
    Job/ Business Experience	1 Year	2 Years
    Age of Co-applicant	Minimum 18 years	Minimum 18 years

12. Can joint-applications be made for RBL Bank Home Loans?

    RBL. Joint applicants can be made for RBL Bank Home Loans.

13. Do I have the option to structure my loan as partly fixed or partly floating?

    RBL, you can structure your RBL Ltd. Home Loan as Partly Fixed or Partly Floating as per your needs.

14. What are the maximum number of properties that I can own?

    You can own as many properties as you want.

15. What is a down payment?

    Down payment is the amount that is paid by the borrower on an up-front basis. Banks usually pay around 75% to 85% of the cost of the property, hence the rest amount the borrower needs to pay as down payment.

16. What is the average tenure of a home loan?

    Home loans average tenure ranges generally between 3 and 25 years.

17. Can I pre-pay my RBL Bank home loan? Is there any penalty?

    RBL. You can pre-pay your RBL Bank home loan with nil penalty for floating rate home loan.

18. What security do I need to furnish for RBL Bank home loan?

    The property purchased out of the loan is taken by RBL Bank as the security. However, if RBL Bank feels then it can ask for additional securities too.

19. Who is an NRI?

    NRI or Non Resident Indian is a citizen of India or a foreign national of Indian origin living outside India for the purpose of employment, business or any other vocation, which would indicate his intention to stay outside India for an indefinite period of time. An Indian would also be termed as an NRI if his stay in India is less than 182 days.

20. What is the mode of payment for NRI home loans?

    Generally, payments are made through NRI Account like NRO, NRE, NRNR and FCNR accounts. NRI home loan can be paid by way of direct remittances from abroad through normal banking channels or from other financial accounts as may be permitted by RBI.

21. What kind of job makes me eligible for RBL Bank home loan?

    You can either be a salaried employee or self-employed for obtaining this loan. However, the only condition is that you should be earning a regular income and should be able to furnish proofs of the same.

22. What is the tax benfits available on RBL Bank home loan?

    As per Section 80C of the Income Tax Act, in case of the principal amount, you can claim a deduction of upto Rs 1.5 lakhs while in case of interest, it is upto Rs. 2 lakhs.

23. Are long-term home loans beneficial or short-term loans?

    It dependes on the financial status of the borrower. If he wants lower EMIs then Long-term loans, if not, then he can go with short-term loans with higher EMIs with the benefit of lesser interest.

24. Do I have to pay only fixed rate of interest or floating rate is also there in RBL Bank Home Loan?

    No, you have the option to choose any kind of rate of interest you want to pay. You can pay floating rate of interest which is linked with the MCLR and keeps changing from time to time.

25. My EMI is increased due to an increase in the rate of interest being it flexible. What do I do for lower EMI?

    EMI increases with the increase in the rate of interest if you have opted for floating rate. You may ask your bank for increasing the loan tenure, if you want to get your EMI reduced or you can make some part pre-payment to your bank for reduction in EMI.

26. What are different modes of payment of EMI of RBL Bank Home Loan?

    The EMI can be paid through various modes such as Post dated cheques, Electronic Clearing Service (ECS), Standing Instruction (SI), etc.

27. Can I apply for a home loan to renovate my home or flat?

    RBL, you can apply for home loan for any purpose such as buying a home, constructing a home, repairing of your home, home improvement, balance transfer and home renovation.

28. What is the difference between EMI and Pre-EMI?

    You repay your home loan through Equated Monthly Instalments (EMI), which includes principal and interest component. EMI repayment starts from the month subsequent to the month of final disbursement. Pre-EMI is only a simple interest, which you are required to pay every month till the loan is not fully disbursed.

29. How to get my Income Tax certificate from RBL Bank?

    Income Tax certificate will be despatched to your after the end of financial year by RBL Bank. You may also contact your nearest RBL Bank branch or your can also send a request through its website for the same.