Dhanlaxmi Bank offers all kinds of banking services from personal banking to corporate banking. As a Kerala-based bank, Dhanlaxmi Bank is a preferred on for NRI banking, as well. It has a well-formulated micro and agricultural banking segment, as well. The bank is in the forefront in lending to SME units in Kerala and other adjoining states. Besides, Dhanlaxmi Bank has one of the best Home Loan products available among private banks.

Dhanlaxmi Bank Home Loan is a versatile product that caters to all requirements of housing. It covers construction or homes to purchase of readymade units. Loans are also available for repairs, renovations, and refurbishments. The bank is also a frontrunner in lending to PMAY beneficiaries, especially in the states of Kerala and Tamil Nadu.

Purpose

• Purchase of new/second-hand houses or flats
• Construction of house/flat
• Purchase of residential plot
• Repairs and renovations to existing home

Quantum of Loan

The maximum loan amount available at Dhanlaxmi Bank is 2.50 Crores depending on the eligibility criteria. The maximum amount applicable to a plot loan is 50 Lakhs. The factors that affect the quantum of a Home Loan at Dhanlaxmi Bank are.

• 85% of the cost of construction or purchase of a new house
• 75% of the purchase cost in the case of residential plots
• 75% for repairs and renovations of existing dwellings

Target Group

• Salaried employees and self-employed individuals/professionals including agriculturists and NRIs having a minimum annual income of 1.20 Lakhs

Eligibility Criteria

• The loan should be repaid entirely before the borrower attains the age of 60 years

Repayment tenure

• The maximum tenure of the Home Loan is 20 years including the moratorium period

Additional Info: Also check DDA Housing Scheme

Dhanlaxmi Bank bases its Home Loan interest rates on the MCLR of the bank. The MCLR concept is in force in Dhanlaxmi Bank since April 01, 2016. As per Reserve Bank of India norms, Dhanlaxmi Bank revises its MCLR every month and publishes the same on its website. The latest such revision is with effect from September 01, 2019.

The Home Loan interest rates link to the one-year MCLR of the bank.

Before April 2016, Dhanlaxmi Bank used to base its interest rates according to its Base Rate Structure. This structure was valid from July 01, 2010. The Benchmark Prime Lending Rate structure was in force before July 2010.

Dhanlaxmi Bank announces its Base rate and BPLR at regular intervals. The last such revision was as follows:

• Base Rate of Dhanlaxmi Bank is 11.35% w.e.f. December 01, 2018
• BPLR of Dhanlaxmi Bank is 21% w.e.f. November 02, 2011.

The Base Rate concept linked to the market rates indirectly. However, RBI felt that the customers were not getting the benefit of market rate fluctuations, especially when the rates go down. Therefore, they came up with a new concept known as the Marginal Cost of Funds based Lending Rate. This MCLR concept was introduced in the entire banking industry from April 01, 2016. The MCLR concept comprised of various factors, both internal and external.

• Marginal cost of funds
• Negative CRR carry
• Operating costs
• Tenor premium

The banks switched over to this concept by adding a spread over the MCLR when quoting the interest rates for the individual products. The factors influencing the range were the credit rating of the borrower and the loan tenure. Any change in the MCLR affects the interest rates on the loans.

Dhanlaxmi Bank announces its MCLR monthly, but the rates are offered to new loans sanctioned or disbursed from that date. The existing loans come with a reset clause.

The resetting of the MCLR takes place at regular intervals. Some banks have a monthly reset, whereas some have a quarterly reset. The interest rates on individual accounts will change only with the resetting of the MCLR corresponding to the particular loan account.

• The effective rates of interest on the Home Loan are linked with the 1Y-MCLR
• These rates apply to new loans sanctioned from the date of announcement of the MCLR. In this case, it is September 01, 2019.
• Existing Home Loans will continue with their contracted rate until the next resetting or review date.
• Dhanlaxmi Bank offers a floating rate of interest on Home Loans

Additional Info: Also check Sukanya Samriddhi Yojana

Dhanlaxmi Bank charges interest every month on the daily reducing balances. Thus, the best method of repayment is EMI. However, agriculturists having seasonal income can opt for equated quarterly or equated half-yearly instalments.

Mode of Repayment

Dhanlaxmi Bank customers

• Post-dated cheques from their savings or current accounts
• Standing Instruction to debit the account for recovery of home loan EMI
• Internet banking or mobile banking transfer
• Pay cash at Dhanlaxmi Bank counter

Other Bank customers

• Post-dated cheques
• ECS mandates
• Funds transfer via internet/mobile banking
• Funds transfer from their bank branch
• Pay cash at Dhanlaxmi bank counter

Dhanlaxmi Bank offers the EMI Calculator feature to help customers calculate their Home Loan EMI. Access the application and submit the information like loan amount, rate of interest, and repayment period to get your EMI.

MyMoneyMantra has a similar EMI calculator on its webpage.

Apply online

• Access the official page of Dhanlaxmi Bank
• Click on the Apply Now option
• Complete the form and submit it online
• Dhanlaxmi Bank loan officials will contact you to complete the formalities

Apply through MyMoneyMantra

MyMoneyMantra offers a similar facility whereby you can apply for Dhanlaxmi Bank Home Loan. The advantages of applying through MyMoneyMantra are as follows:

• Compare various Home Loan products on a single screen
• Get advice from MyMoneyMantra Home Loan counsellors
• These services are available free of cost

Additional Info: Also check Home Renovation Loan

Dhanlaxmi Bank has a strong presence in the southern states of Kerala and adjoining Tamil Nadu. It has many branches in the smaller towns, thereby making it an ideal bank for PMAY. Dhanlaxmi Bank has HUDCO as its Chief Nodal Agency. The bank applies to HUDCO for the approval and disbursement of interest subsidy.

PMAY beneficiaries are eligible for upfront interest subsidy. The amount of grant depends on different factors:

• Category of borrower
• Maximum loan amount eligible for a subsidy
• Maximum eligible subsidy

Points to note

• PMAY subsidy is upfront interest subsidy
• It is credited to the Home Loan forthwith
• Upfront credit of support reduces the loan EMI for the borrower
• It is calculated using the NPV formula
• The notional rate of interest is 9% for 20 years
• Loan amount over the eligible amount for subsidy is an unsubsidised loan
• Foreclosure of the loan before 20 years involves a refund of the corresponding value of the grant