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Dhan Laxmi Home Loan Interest Rates 2020

Dhan Laxmi Bank Housing Loan Interest Rate

Last Updated 09th Sep 2020

Current Dhan Laxmi Bank Home loan interest rates for Sep 2020 starts at 7.40% p.a. for a maximum tenure of 20 years. Processing fee on its housing loans is Upto 1.00%, Minimum ₹ 10,000 and .

Loan AmountDhan Laxmi Bank Repo Rate Home Loan Rate
Upto ₹ 25 Lakh7.40%
₹ 25 Lakh - ₹ 75 Lakh7.40%
₹ 75 Lakh - ₹ 1 Cr7.40%
Above ₹ 1 Cr7.40%

Dhan Laxmi Bank Home Loan Interest Rates

Dhan Laxmi Bank offers various products on home loan. Dhan Laxmi Bank home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • Dhan Laxmi Bank Home Loan Interest Rate starts from 7.40%.
  • Dhan Laxmi Bank charges a processing fees of Upto 1.00%, Minimum ₹ 10,000 and .
  • Loan Tenure of Home Loan ranges from 5 years to 20 years.
  • Lowest EMI per lakh on home Loan from Dhan Laxmi Bank is ₹ 799 per lakh offered at the lowest interest rate of 7.40% at the longest loan tenure of 20 years.
  • Dhan Laxmi Bank allows prepayment of home loans with Nil charges on floating rate loans.
  • Dhan Laxmi Bank has an average customer rating of /5.0 from customers who have taken a home loan from the bank.

Dhan Laxmi Bank Home Loan Rate

Current Dhan Laxmi Bank home loan interest rates are in the range of 7.40% to 8.00%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 7.40%. The table below gives the interest rates on various housing finance schemes of Dhan Laxmi Bank.

Dhan Laxmi Bank Home Loan Scheme Interest Rates
Dhan Laxmi Bank Repo Rate Home Loan7.40% - 8.00%

Dhan Laxmi Bank Bank Home Loan Charges

Dhan Laxmi Bank Home Loan Processing Fee

Dhan Laxmi Bank home loan processing charges are upto 1.00% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. The bank charges a minimum processing of ₹ 10,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to Dhan Laxmi Bank housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

Dhan Laxmi Bank Home Loan Prepayment

Dhan Laxmi Bank charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to Dhan Laxmi Bank for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from Dhan Laxmi Bank, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with Dhan Laxmi Bank.

Dhan Laxmi Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Dhan Laxmi Bank Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at Dhan Laxmi Bank if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on Dhan Laxmi Bank Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)7.4% to 8%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1 Lakh
  • Time period: 5 years to 20 years
  • Dhan Laxmi Bank Home Loan Interest Rate: 7.40% to 8.00%
  • Processing Fee payable to Dhan Laxmi Bank: Upto ₹ 10,000. Current offer for processing fee is Upto 1.00%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 799 for a 20 years ₹ 1 Lakh loan at 7.40% (lowest rate, longest time period) to ₹ 2,028 for a 5 years ₹ 1 Lakh loan at 8.00% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 31,658 for 5 years loan to ₹ 1.02 Lakh for 20 years loan

Dhan Laxmi Bank’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of Dhan Laxmi Bank.

FAQs

What is Dhan Laxmi Home Loan interest rate?

Dhan Laxmi Home Loan interest rate ranges between 7.40% to 8.00%.

Why should I opt for balance transfer to Dhan Laxmi Bank?

Dhan Laxmi Bank offers competitive Home Loan rates with the best EMI of ₹ 799 per lakh availed at a low-interest rate of 7.40% for a maximum tenure of 20 years. If you are paying an EMI more than ₹ 799 per lakh, you should consider the option for a loan transfer to Dhan Laxmi Bank from your existing bank. EMIs can be calculated through Dhan Laxmi Bank Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from Dhan Laxmi Bank?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on Dhan Laxmi Bank housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on Dhan Laxmi Bank housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

How will Dhan Laxmi Bank housing loan rate of interest change in the future?

  • Dhan Laxmi Bank offers RBI Repo Rate linked Home Loan which starts at 7.40%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called Dhan Laxmi Bank Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 3.4% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the Dhan Laxmi Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then Dhan Laxmi Bank Repo Rate linked Home Loan rate will cut from 7.40% to 7.25%.

What is the current Dhan Laxmi Bank Home Loan rate?

The current Dhan Laxmi Home Loan rate starts from 7.40% with a processing fee of Upto 1.00%, Minimum ₹ 10,000 and

Related Topics
Latest Blogs

Dhan Laxmi Home Loan News - Sep 2020
  • 2020-08-03 : Dhanlaxmi Bank Ltd Q1FY21 net profit at Rs. 6.09 crore
    Dhan Laxmi posted a net profit of Rs.6.09 crores for the period ended June 30, 2020, as against a net profit of Rs.2.60 crores for the period ended March 31, 2020. In addition to this, The bank reported a total income bolstered by retail loans home, personal, car, two-wheeler and gold loans along with business and mudra loans of Rs.278.62 crores during the period ended June 30, 2020. Bank provisioning for bad loans and contingencies spiked to Rs 37.02 crore during the reported quarter of FY21 as against Rs 9.27 crore a year ago.
  • 2020-01-08 : Dhanlaxmi Bank revised interest rates on retail loans
    Dhanlaxmi Bank revised its home loan interest rate by 25 bps, which begins from 9.55%. It also changed the interest rate on personal loans, which lies between 12.90% to 16.10%. The rates are revised to lure home loan and personal loan buyers.
  • 2019-06-04 : Dhanlaxmi Bank revises MCLR rates across loan tenure
    Dhanlaxmi Bank has revised its Marginal Cost of Funds Based Lending Rate (MCLR) across all tenure for June. The move is supposed to make retail loans like housing loans and mortgage loans cheaper. Now for overnight and one month, the rate stands at 8.60%. For 3 months, the rate has been revised to 8.90%. While for 1 year the rate now stands at 9.90%. The revised rates are effective from June 1, 2019.
  • 2019-05-09 : Dhanlaxmi Bank reports a profit of Rs. 27.6 crores in Q4 of FY19
    Private sector lender, Dhanlaxmi Bank has reported strong growth of Rs. 27.6 crores in its net profit for the Q4 of FY19. The profit is boosted by strong growth across its retail loans segment including home loans and mortgage loans and SME loans.
  • 2019-03-01 : Dhanlaxmi Bank targets 12% loan growth in FY20
    Dhanlaxmi Bank aims to grow its loan book by 10% to 12% in the year ending March. In addition to this, the lender also has plans to improve their CASA (Current Account Savings Account) deposits, housing loans and car loans on retail assets front. For this, the lender may raise fresh capital which will help them to lower their bad loan ratio below 2.5% till FY20.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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