Saraswat Bank Home Loan Interest Rate

One of the primary objectives of Saraswat Bank at the time of its establishment was to assist people with getting temporary accommodation and other essential services. Today, the bank offers various kinds of loans such as Home Loans, vehicle loans, education loans and loans against property. The Home Loan product caters to both salaried and self-employed individuals. Home Loans are available up to  70 Lakhs for purposes ranging from purchasing a house to constructing it. Balance takeover facilities are available where borrowers can shift their Home Loans from other banks and financial institutions to Saraswat Bank. Apart from adopting a transparent interest rate structure, Saraswat Bank is committed to providing the best customer service. It explains the popularity of its Home Loan product.

You can also apply for Saraswat Bank Loan Against Property Online and check eligibility, interest rates and necessary documents required. 

Saraswat Bank offers attractive rates of interest on Home Loans linked to its Prime Lending Rate (PLR). As on date, the Saraswat Bank PLR is 8.60%.

The Home Loan interest rate structure is as follows:

Saraswat Bank has an attractive processing fee structure for Home Loans and its variants.

Check for 50 lakh home loan EMI and apply easily on MyMoneyMantra.

PMAY Home Loan Interest Rate Structure

The rate of interest on a PMAY Home Loan is the same as that of the regular Home Loan. The only distinctive feature is the availability of PMAY interest subsidy for eligible borrowers.

The subsidy amount depends on the following factors:

• The category of the borrower: EWS/LIG/MIG-I/MIG-II
• The loan amount: Applicants can avail Home Loan up to their eligibility levels. However, the entire loan amount is not eligible for calculating the subsidy. The maximum amount eligible for calculating subsidy is as follows:
  • EWS/LIG: 6 Lakhs
  • MIG-I: 9 Lakhs
  • MIG-II: 12 Lakhs

• The loan amount over these limits is an unsubsidised loan
• Subsidy ceiling: The maximum amount of subsidy is 2.67 Lakhs for EWS/LIG, 2.35 Lakhs for MIG-I, and 2.30 Lakhs for MIG-II category.
• The subsidy is an upfront grant, whereby the bank should credit it to the loan account immediately on receiving the same.
• Therefore, the bank will charge interest on the approved loan amount less subsidy received in the account.
• As the subsidy is credited upfront, the EMI liability of the borrower reduces considerably

PMAY Home Loan Interest Subsidy Benefit to the Borrower

These examples will explain the benefit of the upfront interest subsidy:

• Borrower with loan amount equal to the maximum amount eligible for calculating the subsidy
  • Borrower category: LIG
  • Loan amount: 6 Lakhs (equivalent to the maximum amount allowable for a grant)
  • Rate of interest: 7.25%
  • Repayment tenure: 20 years
  • EMI in the ordinary course: 5,226

This borrower is eligible for an upfront subsidy of a maximum of 2.67 Lakhs. On receipt of the same, the amount is credited to the Home Loan. Therefore, the principal loan amount reduces to 3.33 Lakhs. The revised EMI would now become 2,900. Thus, the borrower gains 2,326 per month for 20 years.

• A borrower with a loan amount higher than the maximum amount eligible for calculating the subsidy
  • Borrower category: MIG-I
  • Loan amount: 13 Lakhs (more than 9 Lakhs, the maximum amount eligible for calculating subsidy).
  • Rate of interest: 7.25%
  • EMI in the ordinary course: 11,323

The borrower gets a grant of 2.35 Lakhs that is credited to the account. The principal loan amount now reduces to 10.65 Lakhs. Therefore, the revised EMI is 9,276. Thus, the borrower gains 2,047 per month over 20 years. Note that the maximum amount of loan eligible for subsidy is 9 Lakhs. The loan amount above 9 Lakhs, i.e., 4 Lakhs is an unsubsidised loan. The borrower does not get the benefit of interest subsidy on this amount.

Additional Info: Also check How to Apply for Pradhan Mantri Awas Yojana