Saraswat Bank Home Loan Interest Rate

Saraswat Bank home loan interest rates are based on CIBIL score and the loan amount. The housing loan interest rates at Saraswat Bank vary from 7.25% to 7.65% for 750 & above CIBIL score, 7.75% to 8% p.a. for CIBIL score of 700 to less than 750/ -1/ 0, and 8.25% to 8.35% p.a. for a score of less than 700. 


Saraswat Bank Home Loan Details

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 Home Loan Interest Rates

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:

Loan amount slabThe floating rate for all women borrowersThe floating rate for salaried persons (other than women)The floating rate for non-salaried persons excluding women
Up to 28 Lakhs8.55%8.65%8.65%
Higher than 28 Lakhs and up to 50 Lakhs8.80%8.80%8.80%
Above 50 Lakhs9%9.05%9.15%
  • The rates mentioned above apply for the regular Home Loan product, Vastu Siddhi Home Loan
  • The Home Loan rates are linked to the Saraswat Bank PLR. The PLR connects to market rates. Therefore, any fluctuation in the market rates affects the PLR. A change in the PLR causes a corresponding change in the Home Loan interest rate.
  • Women borrowers get a concession of 0.10% on Home Loan interest rates subject to satisfying specific conditions:
    • The woman should either be a sole borrower or one of the joint borrowers
    • The property should be in the name of the woman, or she should be one of the co-owners of the property.
    • The benefit is available only of the cost of the dwelling does not exceed 35 Lakhs
    • The concession is available only for Home Loans up to 28 Lakhs
  • Salaried and self-employed persons are eligible for a Home Loan. However, the rate of interest on their Home Loans is different.

Apart from Vastu Siddhi Home Loan, Saraswat Bank offers a Top-Up Loan for a maximum of 25 Lakhs. Specific conditions apply for the approval of the top up loan. One such condition is that the Home Loan and top-up loan together should not exceed 70 Lakhs per dwelling per beneficiary.

The rate of interest on the top-up loan is different from that of the Home Loan.

The fixed-rate on top-up loans up to 5 Lakhs9%
The fixed-rate on top up loans above 5 Lakhs10%

Besides the regular Home Loan and Top-Up Loans for repairs and renovations, Saraswat Bank has other exciting Home Loan-linked products.

  • Combo offer for Vastu Siddhi customers: Pre-sanctioned car loan up to 6 Lakhs for borrowers having a minimum Home Loan of 50 Lakhs.
  • Pre-sanctioned credit card for all new Vastu Siddhi applicants
Home Loan AmountCredit Card Limit
Home Loans up to 25 Lakhs 50,000
Home Loans more than 25 Lakhs up to 50 Lakhs 1 Lakh
Home Loans above 50 Lakhs and up to 70 Lakhs 2 Lakhs

Apart from Home Loans and its various combo offers, Saraswat Bank offers loan against property. It also has unique products for constructing hospitals, clinics, and dispensaries for medical practitioners. Loans are readily available for the purchase of essential medical equipment.

Additional Info: Also Apply for Home Construction Loan

Saraswat Bank Home Loan - Processing Charges

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

Loan Product and Amount SlabProcessing fee applicable
Vastu Siddhi - Up to 28 LakhsNo processing fees
Vastu Siddhi - More than 28 Lakhs and up to 50 Lakhs 10,000
Vastu Siddhi - More than 50 Lakhs 20,000
Combo offer - Vastu Siddhi plus Car loanProcessing fee waived

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

Saraswat Bank Home Loan - PMAY

Saraswat Bank has more than 280 branches in India spread over Maharashtra, Karnataka, Goa, Madhya Pradesh and a couple of other states. The bank is an active player in PMAY in these states.

The key features of PMAY Home Loans offered by Saraswat Bank are as follows:

Maximum annual family income eligibility
  • EWS - Up to 3 Lakhs
  • LIG - Up to 6 Lakhs
More than 6 Lakhs and up to 12 LakhsMore than 12 Lakhs and up to 18 Lakhs
House dimensions - Carpet areaNo restrictions160 sq.mt200 sq.mt
The maximum amount of loan eligible for a subsidy 6 Lakhs 9 Lakhs 12 Lakhs
Interest Subsidy6.50%4.00%3.00%
Maximum Subsidy Amount 2.67 Lakhs 2.35 Lakhs 2.30 Lakhs
Loan sanctioned datesw.e.f. June 17, 2015w.e.f. January 01, 2017w.e.f. January 01, 2017
Scheme validityMarch 31, 2022March 31, 2020March 31, 2020
Women ownershipMandatoryNot compulsoryNot mandatory

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

Apply for Lowest Home Loan Online @ Rs. 769/Lakh* EMI

Apply for instant home loan online at Interest Rate starting from as low as 8.50% p.a. Pay EMI of just Rs. 769 per Lakh. Loan can be repaid in flexible tenure of up to 30 years. Apply now with minimal documentation. Check eligibility & get instant approval here.

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Saraswat Bank Home Loan Interest Rates FAQs

✅ How does Muthoot Finance India Limited arrive at the Home Loan interest rate?


Muthoot Finance India Limited links its Home Loan interest rate to its Retail Prime Lending Rate. The RPLR is, in turn, connected to market rates. Therefore, it can pass on the benefits of market fluctuations to its customers.

✅ Does Muthoot Finance India Limited have an MCLR or RLLR concept?


Muthoot Finance India Limited is not a bank. Hence, it does not have the MCLR or RLLR concept. It is a non-banking home financing company. The MHIL RPLR has links with market-related rates.

✅ What are the factors that affect the Muthoot Finance India Limited Home Loan interest rate?


Apart from the market-related rates like the repo rate and the T-bill rates that affect the RPLR, other factors weigh in, as well. These factors include the credit history of the borrower, Home Loan amount, the loan tenure, and the occupation of the borrower.

✅ What types of interest rates does Muthoot Finance India Limited offer?


Muthoot Finance India Limited offers both floating and fixed rate of interest Home Loans. The floating rate of interest on MHIL Home Loans is less than the fixed rate. Muthoot Finance India Limited also offers a combined rate of interest that has fixed rate tenure for a pre-determined period followed by a floating rate.

✅ What are the benefits of a floating rate of interest Home Loan?


A floating rate of interest Home Loan comes with various benefits. The borrower gets the advantage of market rate fluctuations. If the market rates go down, the RPLR decreases, thereby reducing the effective Home Loan interest rate. Secondly, there are no foreclosure or prepayment penalties for borrowers opting for a floating rate of interest on Home Loans.

✅ Are there any demerits of a floating rate of interest Home Loan?


The only demerit is that the effective rate of interest could go up when the market rates move in the reverse direction. It could result in the payment of a higher EMI.

✅ Which of the two rates is beneficial to borrowers, fixed or floating?


The floating rate of interest is considerably higher than the fixed interest rate. Hence, it is beneficial under circumstances where the market rates remain stagnant or move downward. If the market rates move up, the rate of interest increases, as well. Overall, the floating rate is a better option.

✅ Will the EMI increase in the event of the interest rates moving upward?


The EMI should increase with an increase in the Home Loan interest rates. However, Muthoot Finance India Limited prefers to maintain the EMI constant while extending the loan tenure accordingly. It is to reduce the burden of payment of additional EMI on the part of the borrower.

✅ Which is the better choice for the borrower, an increased EMI or an extended loan tenure?


It depends on the disposable income on the hands of the borrower. If the borrower has enough income, the increase in the EMI is a better option. An extended tenure increases the overall payment that you pay throughout the tenure.

✅ How do I check out the EMI stipulated by Muthoot Finance India Limited?


Customers can visit the official webpage of MyMoneyMantra and avail the services of the EMI calculator. On entering the loan amount, the rate of interest, and the repayment tenure, you get the EMI instantly.