MyLoanCare is a FREE of cost service for borrowers

Get Cashback of Upto ₹ 1,000* on Home Loan Apply Online

MyLoanCare Customer Ratings - 4.5/5.0

South Indian Bank Home Loan Interest Rates 2020

South Indian Bank Housing Loan Interest Rate

Last Updated 21st Aug 2020

Current South Indian Bank Home loan interest rates for Sep 2020 starts at 8.05% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 1.00%, Maximum ₹ 10,000.

Loan AmountSouth Indian Bank Repo Rate Home Loan Rate
Upto ₹ 25 Lakh8.05%
₹ 25 Lakh - ₹ 75 Lakh8.05%
₹ 75 Lakh - ₹ 3.50 Cr8.05%
Above ₹ 3.50 Cr8.05%

South Indian Bank Home Loan Interest Rates

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

Features

  • South Indian Bank Home Loan Interest Rate starts from 8.05%.
  • South Indian Bank charges a processing fees of Upto 1.00%, Maximum ₹ 10,000.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from South Indian Bank is ₹ 737 per lakh offered at the lowest interest rate of 8.05% at the longest loan tenure of 30 years.
  • South Indian Bank allows prepayment of home loans with Nil charges on floating rate loans.
  • South Indian Bank has an average customer rating of 3/5.0 from customers who have taken a home loan from the bank.

South Indian Bank Home Loan Rate

Current South Indian Bank home loan interest rates are in the range of 8.05% to 8.05%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 8.05%. The table below gives the interest rates on various housing finance schemes of South Indian Bank.

South Indian Bank Home Loan Scheme Interest Rates
South Indian Bank Repo Rate Home Loan8.05%

South Indian Bank Bank Home Loan Charges

South Indian Bank Home Loan Processing Fee

South Indian 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 the maximum processing fees at ₹ 10,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to South Indian 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.

South Indian Bank Home Loan Prepayment

South Indian 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 South Indian 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 South Indian Bank, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with South Indian Bank.

South Indian Bank 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

South Indian 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 South Indian 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 South Indian Bank Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)8.05% to 8.05%
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 30 years
  • South Indian Bank Home Loan Interest Rate: 8.05% to 8.05%
  • Processing Fee payable to South Indian Bank: Upto ₹ 10,000. Current offer for processing fee is Upto 1.00%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 737 for a 30 years ₹ 1 Lakh loan at 8.05% (lowest rate, longest time period) to ₹ 2,030 for a 5 years ₹ 1 Lakh loan at 8.05% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 31,802 for 5 years loan to ₹ 1.75 Lakh for 30 years loan

South Indian 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 South Indian Bank.

FAQs

What is South Indian Bank Home Loan interest rate?

South Indian Bank Home Loan interest rate ranges between 8.05% to 8.05%.

Why should I opt for balance transfer to South Indian Bank?

South Indian Bank offers competitive Home Loan rates with the best EMI of ₹ 737 per lakh availed at a low-interest rate of 8.05% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 737 per lakh, you should consider the option for a loan transfer to South Indian Bank from your existing bank. EMIs can be calculated through South Indian Bank Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from South Indian 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 South Indian 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 South Indian 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 South Indian Bank housing loan rate of interest change in the future?

  • South Indian Bank offers RBI Repo Rate linked Home Loan which starts at 8.05%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called South Indian 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 4.05% 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 South Indian Bank 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 South Indian Bank Repo Rate linked Home Loan rate will cut from 8.05% to 7.9%.

What is the current South Indian Bank Home Loan rate?

The current South Indian Bank Home Loan rate starts from 8.05% with a processing fee of Upto 1.00%, Maximum ₹ 10,000

Related Topics
Latest Blogs

South Indian Bank Home Loan Reviews 3/5  by 1 customers
MyLoanCare Service
3/5.0
Banks Service
3/5.0
Venkatesan, Coimbatore
Reviewed on 27th Nov 2014
3 / 5 stars
South Indian Bank Home Loan Availed in Sep-17

Took a home loan last year. Got a good rate, but higher than other banks. But my property was in graRead more...

South Indian Bank Home Loan News - Sep 2020
  • 2019-12-23 : South Indian bank cuts MCLR rates
    South Indian Bank has cut its Marginal Cost of Funds Based Lending Rate (MCLR) by up to 10 bps for December month. For 1 year, the MCLR stands at 9.00% as compared to 9.10% earlier. For overnight, the rate has been cut to 8.30% from 8.40% earlier. The revised standards have been in effect from December 20, 2019. The cut in MCLR will impact the interest rate of MCLR linked home loans.
  • 2019-07-15 : South Indian Bank plans to grow its retail and MSME Book, targets to raise Rs. 300 crore
    South Indian Bank is planning to grow its retail loans, including home loans, mortgage loans, and MSME loan portfolios during FY19-20. For this purpose, the lender is looking to raise funds of up to Rs. 300 crore through the private equity route. The lender had already raised Rs. 250 crore during the month of March.
  • 2019-06-20 : South Indian Bank revises MCLR rates across loan tenures
    South Indian Bank has reduced its Marginal Cost of Funds Based Lending Rate (MCLR) for one-year tenor loan by 5 basis points to 8.85%. The move is supposed to make customer loans like home, auto, and personal loans cheaper. For overnight and one-month, the MCLR stands at 8.60% and 8.65% respectively. While for one-year and the rate has been changed to 9.50%. The revised rates are effective from June 20, 2019.
  • 2019-03-25 : South Indian Bank to raise up to Rs. 250 crore via Basel III-compliant bonds
    South Indian Bank has said that it will raise up to Rs. 250 crore by issuing Basel III-compliant bonds. The capital planning and infusion committee has approved the proposal for issuance of rated, unsecured, redeemable, non-convertible, Basel III compliant, lower tier 2 bonds up to Rs.150 crore with an option to retain an over-subscription aggregating up to Rs. 100 crore, aggregating to total issue size of Rs. 250 crore. Further, the bank also has plans to achieve strong growth in its retails loans portfolio.
  • 2018-11-21 : South Indian Bank hikes MCLR by 10bps across all tenure
    South Indian Bank has revised its MCLR for the month of November. The new rates stand in the range of 8.55% and 9.45%. Six-month MCLR is 9.00% and that of one year is 9.45%. The revised rates are effective from November 20, 2018.
*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
Loader
Please wait while your information is being processed...