20 Year floating home loan rates
One of the most important investments that you make in your whole life is buying a home. More often than not, a home loan is the only means that you have to use to become a home owner. Nevertheless, there are certain factors that you need to take into account when you are shopping around for a home loan. The interest rate is one of the important factors. If you have made a decision to go
About 20 year floating home loan rates
When you are in the hunt for a home loan that you can afford, your target would obviously be to secure the cheapest interest rate. At the same time, you should think about the repayment term of the loan. If you opt for a shorter loan term, then you have to bear the burden of higher monthly installments. Go for it if you can manage it. If you don’t feel you have the capacity to cope with higher monthly payments, then go for a longer loan term. Choosing a 20 year home loan will ensure that your monthly payments stay within a manageable level. At the same time, selecting a floating interest rate can help you make the most of the market rates when they go down. Floating home loan rates are linked to market rates. When market rates shoot up, floating home loan rates go up and when market rates slump, floating home loan rates decline as well. So choosing a 20 year floating rate home loan can give you a number of benefits.
Listed below are the 20 year floating home loan rates available from the major banks in India:
| Product Name | Effective Interest Rate | EMI | No. of EMIs | Processing Fee |
| PNB Home Loan | 9.25% | Rs. 18,317 | 240 | 0.5% |
| IDBI Home Loan | 8.75% | Rs. 17,674 | 240 | 1% |
| BOB Home Loan | 9.00% | Rs. 17,995 | 240 | 0.5% |
| Canara Bank Home Loan | 9.25% | Rs. 18,317 | 240 | 0.5% |
| Oriental Bank of Commerce Home Loan | 9.25% | Rs. 18,317 | 240 | 0.5% |
| HDFC Home Loan | 9.00% | Rs. 17,995 | 240 | 1% |
| SBI Home Loan | 9.75% | Rs. 18,970 | 240 | 0.25% |
N.B.: It has been assumed that the amount of the floating rate home loan is 20 lakhs.
The variation of floating interest rates depends on macroeconomic factors like decisions made by the Reserve Bank of India. Floating interest rates in India typically range from 9-10% and there is no uniform rate that will be applicable to all forms of loans. Getting a good rate is possible if you can negotiate well and have a good payment history.
You should always keep in mind that interest rates differ from one loan product to another and one lender to another. Comparison of rates is vital in choosing an affordable home loan. When you qualify for a 20 year floating rate home loan, you can use it for various purposes like home renovation, home buying, home extension and others.
Last Updated On: 2011/05/03
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