Dhanlaxmi Bank Home Loan Interest Rates
Get a home loan up to Rs. 2.5 Crores from Dhanlaxmi Bank with minimal documentation. The borrowed amount can be repaid in a maximum repayment tenure of up to 20 years. Dhanlaxmi Bank home loan interest rates vary from 7.85% to 9% p.a.
Dhanlaxmi Bank Home Loan Interest Rates
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.
| Tenor | Overnight | One-month | Three-month | Six-month | One-year |
|---|---|---|---|---|---|
| MCLR | 8.50% | 8.50% | 8.80% | 9.60% | 9.80% |
The Home Loan interest rates link to the one-year MCLR of the bank.
| Home Loan Product | MCLR spread | Effective Interest Rate |
|---|---|---|
| Dhanam Home Loan | 1Y-MCLR + 0% to 1Y-MCLR + 0% | 9.80% |
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.
Dhanlaxmi Bank Home Loan Interest Rate - Points to Note
- 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
Dhanlaxmi Bank Home Loan Service Charges
| Nature of fees | Amount |
|---|---|
| Processing fees | 1% of the loan amount with a minimum of 10,000 |
| Non-refundable fee payable with the application | Up to 20 Lakhs: 3,500 Above 20 Lakhs: 5,000 |
| Cheque bouncing charges | 500 per occasion |
| Late payment fees | 3% per month on the default amount |
| Cheque swapping charges | 500 per instance |
| NOC issuance |
|
| Document retrieval charges | 500 |
| Change in the EMI cycle | 500 |
| Foreclosure statement charges | 200 |
| Switching fees (from floating to fixed and vice versa) | 3% of the outstanding amount |
| Part prepayment charges |
|
| Foreclosure charges | Nil |
| Stamp duty on documents | Depends on State Laws |
Dhanlaxmi Bank Home Loan Interest Calculation and Repayment
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
FAQs
Switching over from the Base Rate or BPLR to MCLR is permissible on the payment of a conversion fee. However, the bank does not allow switching of loans from the MCLR to the Base Rate concept.
In the MCLR structure, there is no fixed-rate concept of Home Loans. However, there could be borrowers who might have availed the fixed rate of interest Home Loans in the Base Rate structure. Such persons can switch over to a floating rate of interest by paying a switch-over fee.
The floating rate of interest on Home Loans is linked to the MCLR of the bank. The MCLR, in turn, is a market-related rate. The MCLR moves along with the market rates. Thus, Home Loan interest rates move accordingly, as well. Any reduction in the MCLR can bring benefits to the customer by way of a reduction in the Home Loan interest rate. Secondly, Dhanlaxmi Bank does not charge any foreclosure penalty on Home Loan accounts with floating rates of interest.
No, Dhanlaxmi Bank has not switched over to the RLLR method of calculating the Home Loan interest rate. However, they could do so soon.
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
Director- MyMoneyMantra FinTech| A senior retail and commercial banking professional, adept at handling Business Development, Sales Planning & Growth, Product Strategy, Marketing Operations and Client advisory services phygitally.