Let’s Analyze Bandhan Bank Home Loan Interest Rate Here

Bandhan Bank is fast growing its presence in India’s lending space by adding to its number of branches across the country. Not only the presence, but even the product offerings are greater in scope. On the home loan front, Bandhan Bank has taken a strong foot forward by taking over HDFC’s GRUH Finance. And, as a result, the bank has now three home loan products - Suraksha, Suvidha and Sajavat - to offer. Bandhan Bank Home Loan Interest Rate is set accordingly. Let’s check out the rate and its impact on your pocket. 

What is Bandhan Bank Home Loan Interest Rate?

Bandhan Bank uses the external benchmark of RBI Repo Rate to price its home loans. The interest rate comes after adding a certain portion of spread over the RBI Repo Linked Lending Rate (RLLR) of 5.15%. Interestingly, the rate varies according to the amount of loan. Loans upto ₹15 lakh, above ₹15 lakh-50 lakh and above ₹50 lakh are offered at interest rates of 9.50%-11.75%, 8.75%-11% and 9%-11.25%, respectively, under Suraksha Home Loan. Whereas, Suvidha Home Loan comes at interest rates of 9.75%-12% for loans upto ₹15 lakh, 9%-11.25% for loans above ₹15 lakh-50 lakh and 9.25%-11.50% for loans above ₹50 lakh. 

How to Evaluate the Effect of Bandhan Bank Home Loan Interest Rate?

This can be best done using the Bandhan Bank Home Loan EMI Calculator that uses the interest rate to compute your repayment summary. The rate plays a critical part in the calculation of Equated Monthly Installment (EMI), a combination of interest and principal payable over the course of a loan. Besides, you can check as to how much interest you’ll pay to the lender by the time the loan wraps up. For all such calculations, you also need to use the loan amount and tenure besides the interest rate. 

Use Bandhan Bank Home Loan EMI Calculator to Time Your Prepayment/Part Payment Perfectly

The calculator makes it clear the repayment schedule before you to decide upon a possible prepayment or part payment. The schedule tells the principal and interest payment you will make year after year. Apart from that, you’ll get to know the outstanding loan balance annually. This will help you draw out the time when you can successfully prepay or part pay the 0loan. If you look at the calculator closely, you’ll see the interest portion of the loan constituting more of the EMI in the initial years. Say, for example, if you are availing a 25-year home loan, look to prepay the loan in say 8-10 years. For that, you need to invest accordingly to accumulate the desired amount to pay off the outstanding balance. Else you can look to part pay by accumulating savings over the years and paying once a year. Maybe you should look to pay one extra EMI every year. This will reduce the outstanding balance periodically and the interest amount. 

How to Apply for Bandhan Bank Home Loan Online?

You can apply for Bandhan Bank Home Loan online by mentioning a few personal and professional details. The bank will check the details thoroughly before approving the application. Afterward, a team of experts will make a technical & legal report of the property after surveying the same. The report findings will dictate the setting of the property value, which will further help the bank decide the amount of loan it can offer you.