Reg : HomeLoan

POSTED BY Prasad Chandi ON October 30, 2012 1:47 pm COMMENTS (9)

I m going to take home loan from India bulls that is rite now interest rate 10.25 for 2500000.
Now my question is that in future how they increase the interest rates. for example: they have 2 slabs that is upto 2500000 – 10.25 and above 2500000 lakhs 10.75.
a)If RBI increase or decrease the interest rates how India bulls increase or decreases interest rates…?
1)suppose to increase 0.25.
2)they will increase 10.25+0.25 = 10.50 for upto 25 lakhs slab
3)and 10.75+0.25 = 11.00 for above 25 lakhs slab?
4)they combained both slabs and increase the rates in remaining tenor in future?
5)India bull will decide on customer to customer variation interest rates? If yes, what is the conditions?

Please help me out.

Thanks in advance

9 replies on this article “Reg : HomeLoan”

  1. ashalanshu says:

    Dear Sachinvest, the original query was asked in Oct 2012 and now it’s Feb 2014. It means the limited period offer is running for past 14 months. 🙂



  2. sachinst says:

    I had taken home loan from indiabulls @10.40%. Currently Indiabulls offer Home loan @ 10.25% upto 25 lac on 3000+ projects. I think it is limited period offer

  3. sachinst says:

    I had taken Currently Indiabulls offer Home loan @ 10.25% upto 25 lac on 3000+ projects.

  4. jijo pappachan says:

    Prasad, can i have your contact number. I have applied for home loan from india bulls and its most likely to get sanctioned. I wanted to get a feedback from you about their loan. pls.

  5. Prasad Chandi says:

    I taken home loan from Indiabulls only..
    rate of interest is 10.25 – upto 2500000.

    Thanks in Advance.


  6. Dear Prasad, what’s the current situation of your home loan?

    Please update us.



  7. Biswa Singh says:

    Do you know why pople like SBI homeloan and hate private bank’s home loan? Private banks easily increase the home loan interest when RBI increases the REPO rate but when RBI reduces it they are reluctant to reduce it.

  8. Prasad Chandi says:

    I got a mail from IndiaBulls for my query. Pls look into this..

    This is in reference toy our enquiry regarding the Rate of Interest Distribution.

    We would like to inform you that the ROI of the loan account depends on the Reference Rate which is Floating reference rate (FRR)/Prime Lending Rate (PLR) or Loan against property FRR of Indiabulls only and both are directly proportional.

    Please note that FRR/PLR is a benchmark reference of Indiabulls Housing Finance Ltd. This is determined based on the market conditions and the cost of funds of Indiabulls Housing Finance Ltd. Since your Housing Loan is at a Floating rate of Interest, the FRR/PLR can be changed as per the discretion of Indiabulls Housing Finance Ltd.

    Further we would like to inform you that ROI is fixed and re-set by us from time to time as our business decisions. There is no restriction in the matter on us by any regulator. The FRR/PLR change decisions are taken after assessing our cost of funds, cost of operations and other various expenditure, which get changes due to inflation, RBI rate hike, wage revision etc. Hence, we need to re-price our loan products to make our business viable.

    Further please note that the rate of Interest is charged on a loan account as per the agreed terms negotiated at the time of application for granting of loan. The rate of interest is negotiated by us on the basis of risk profile of an intending client and prevailing rate policy of the Company at the time.

    For further clarifications, you are requested to contact to your nearest Indiabulls credit branch.

    Thank you for your understanding.

    For any further Queries and Complaints, Please call our Customer Care Helpline at 1-800-200-7777 (toll Free)

  9. BanyanFA says:

    Mr Rao,
    Unfortunately there is not an exact direct link between RBI’s interest rates and home loan interest rates. Every financial organisation has their base rate which is some what influenced by RBI’s rate. If RBI increases / decreases the rate, base rate may go up / down, but it is not always the case. It all depends on how the organisation wants to act (demand supply, competitiveness, liquidity position, etc.)

    However, sooner or later, the respective organisation will reduce its interest rates to be competitive. It all depends upon how the India bulls management takes a decision based upon their market penetration requirements / liquidity to reduce rates for both slabs or just one.

    Banyan Financial Advisors (BanyanFA)

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