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Home Loan

RBL Bank was formerly known as The Ratnakar Bank and is a scheduled commercial bank that has its headquarters in Kolhapur region at Maharashtra. The Bank successfully established its presence in lzthe states of Maharashtra and Karnataka. It has not rapidly expanded to other growth states such as Punjab, Gujarat, Telangana, Andhra Pradesh, Tamil Nadu, Delhi NCR, Haryana, Madhya Pradesh, Rajasthan and West Bengal. The bank has expanded its branches all over the country and has also expanded the number of ATMs around the country. The Bank has over 5 lakhs satisfied customers all over India.


RBL Bank offers Home Loans wherein the amount of loan available can then be used for any personal or business needs. The Equated Monthly Instalment (EMI) is lower so that customer can utilize the funds without worrying about affordability. The loan process is easy because the documentation is simpler, approvals are given fast and repayment options are flexible.


RBL Bank issues Home loans to fulfil the needs and requirements of all and sundry. Given below are the details of the Home Loan offered by the RBL Bank to its customers:


RBL Bank Home Loan: this loan is issued for those who wish to purchase a new house or construct a house. The Home loan can be availed either in the name of a single customer or under the names of two or more individuals jointly. This loan can also be used for the renovation and refurbishing of an existing house or flat.


Key features
 

  • The RBL Bank Home Loan is issued to borrowers for a maximum amount of Rs.10 crores.
  • The RBL Bank Home Loan is capped at a maximum of 75% to 90% of the property value.
  • This loan is available to individuals who are in between the ages of twenty-four and sixty. The loan applicants must have a fixed regular income from a reputed company and self-employed professionals or businesspersons who have been working for minimum three years in their field of activity. This loan is to be availed for the building, buying of a plot/house/flat. It can also be used for the extension, renovation and refurbishing of a house, plot or flat.
  • The loan has repayment tenure of up to 25 years. An individual availing the loan can choose any term until 25 years for paying off the loan. With such a long tenure, paying off the home loan becomes easier for a customer. The longer tenure of repayment also ensures lower EMIs as the installments are spread over a longer time frame making them affordable. If the customer, however, wishes to dispose the loan sooner, he may choose a term earlier than 25 years like 15 or 20 years. The corresponding EMI will be higher, but if the loan applicant can afford the rates then there will be no problem in paying off the loan sooner. The repayment of home loan has to be completed by the time borrower reaches the age of 65 years, or by the time, he or she reaches superannuation, whichever is earlier.
  • The borrower may add a co-applicant while applying for the home loan. This co-applicant may or may not be the co-owner of the property. Co-applicants are usually husband or wife, father, mother, son, daughter, etc.
  • Residents of India are eligible for tax benefits on the principal and interest components of a housing loan.                
  • Borrowers of the RBL Bank Home Loan can save interest by maintaining balance in a linked account.
  • There are no pre-closure charges in case the borrower wishes to close the loan before estimated closing period.

​​Purpose or objective of the RBL Bank Home Loan


The purpose or objective for which the RBL Home Loan may be availed is as follows:
 

  • For the purchase of a new flat or house or the construction of a house or flat
  • For the purchase of a plot of land and construction of house (both) thereon
  • For the purchase of an existing (old) house or flat or for the extension of an existing house
  • For the purchase of a plot only
  • For the repair or renovation of an existing house or flat
  • For furnishings/consumer durables

Checking Eligibility

An applicant who would like to avail of a Home Loan from the bank first needs to be eligible for the loan as per the bank’s requirements. Checking the eligibility has been greatly simplified by the bank, where the prospective client can visit the website of RBL Bank and check his or her eligibility. Individuals over the age of 24 are eligible for the Home Loan offered by RBL Bank. The maximum age at loan maturity has to be 65 or at superannuation, whichever is earlier. There are certain criteria that RBL Bank expects the borrowers to fulfill before disbursing the loan. The criteria are as follows:
 

  • Salaried Individuals – They should have a minimum net salary of Rs. 120, 000 per year. They need to have a minimum of 1-year experience at their current job and two years of total work experience.
  • Self –employed individuals and professionals – They should have a minimum net profit of Rs. 120, 000 as per their latest ITR/Financials. They will need to have three years of experience in their line of activity.

Factors that affect the RBL Bank Home Loan eligibility
 

There are several factors that affect the loan applicant’s eligibility for the RBL Bank Home Loan. They are as follows:
 

  • Income – The loan applicant’s repayment capacity is dependent on his or her income. Therefore, loan applicants who have a higher income have a better chance of getting the loan approved.
  • Age – This is a tricky category, as younger loan applicants may find it hard to get their home loan request approved as the RBL bank views them as being experimental with their jobs. However, loan applicants who are on the verge of retirement may also find that their loan request does not get approved easily as their loan repayment capacity will diminish post retirement.
  • CIBIL Score – The RBL Bank will check the loan applicant’s CIBIL score before approving or rejecting the loan. CIBIL stands for Credit Information Bureau Limited, it is India’s first credit information company that was founded in the year 2000.
  • Employment history – Home Loan applicants who have a steady and stable job history will have an easier time of getting their loan request approved as the bank will view their stable work history as a sign of credibility.
  • Existing debt – Any type of existing debt that the loan applicant owes, would be viewed as a financial burden by the bank until it is cleared. That existing debt could affect the repayment of the new personal loan.
  • Type of employment – Loan applications from individuals who are permanent employees of companies would be viewed as more favorable than those who are temporary employees.

Interest

The floating interest rate on the RBL Bank Loan against Property is linked to its Base Rate. The RBL Banks’ base rate as on 25.06.2016 is 10.60%.


RBL Home Loan Applicable Charges

 

Processing Fees

 

 

 

Pre-closure charges

 

Charges for Late Payment of EMI

 

 

Charges for CIBIL report

 

Other charges – Lawyer’s fees, Valuation fees

Up to Rs.25 lakhs – Rs.5000

Rs.25 lakhs to Rs.75 lakhs – Rs.10,000

Rs.75 lakhs and above – Rs.15,000

 

NIL

 

2% additional interest per month on the overdue EMI amount

 

Rs.50

 

To be borne by the borrower on the basis of actual cost

RBL Bank Home Loan Documentation

The documentation criterion is different for salaried individuals and that for self-employed individuals. The following list gives a complete set of documents required by both salaried and self-employed individuals:


For salaried applicants
 

  • Passport size photographs
  • Proof of Residence which can be a copy of any one of the documents like Ration Card, Telephone Bill, Electricity Bill and Voters Card.
  • Proof of Identity which can be a copy of any one of the documents like Voter’s Card, Driver’s License, PAN Card and Employer’s Card.
  • The latest Bank Statement or Passbook which shows the salary or income being credited in the account for the last 6 months.
  • Salary Slip of the last 6 months with deductions shown.
  • Form 16 of the last 2 years.
  • Agreement for sale of house/flat.
  • Estimates for construction/valuation report for acquisition/legal opinion on the property from a bank approved engineer/lawyer.
  • Processing fee cheque

For Self-employed Professionals/Businesspersons
 

  • Passport size photographs
  • Latest audited ITR
  • Certified Financial Statements for the last 2 years (balance sheet, profit & loss accounts, computation of income with all schedules).
  • Proof of Residence which can be a copy of any one of the documents like Ration Card, Telephone Bill, Electricity Bill and Voters Card.
  • Proof of Identity which can be a copy of any one of the documents like Voter’s Card, Driver’s License, PAN Card and Employer’s Card
  • Latest bank statement or Passbook which shows the salary or income being credited in the account for the last 6 months
  • Business continuity proof – any one of the following documents that should be dated 5 years old – Sales Tax challans / Shops & Est Certificate/ COI / Partnership Deed
  • Professional Qualification Certificate and Degree Certificate for professionals (Doctors, architects, chartered accountants, etc.).
  • Agreement for sale of house/flat).
  • Estimates for construction/valuation report for acquisition/legal opinion on the property from a bank approved engineer/lawyer.
  • Loan applicant has to provide a letter that certifies the use of the loan on a business letterhead.
  • Processing fee cheque

EMI Calculation on RBL Bank Home Loans

RBL Bank accepts repayment in the form of EMIs or Equated Monthly Installments. The following are some of the instances of calculated EMIs featuring different scenarios of loan applicants, with different loan terms, interest rates and amounts.
 

  • Mr.  Sapre is a salaried employee working in a reputed private sector company in Mumbai. He intends to purchase a house in his city that will be nearer to his office. After calculating the savings he has and the cost of the house, he finds out that there is a shortage of Rs.50 lakhs which will be required for purchasing the flat.  He visits a branch of the RBL Bank and meets with a bank official who gives him the EMI figure of Rs. 56, 360, at an interest rate of 10.85% with loan repayment tenure of 15 years.
  • Mr. Tripathi, aged 30 years is a salaried professional working for a Multi-National Corporation situated in Kolkata. He has decided to buy an apartment in the city for which he needed 15 lakhs. As Mr. Tripathi is a longtime customer and savings bank account holder in RBL Bank, he decides to approach the bank that he has trusted for so many years. He approaches a RBL Bank representative with the proposal and agrees to repay the loan in years. The bank charges him an EMI of Rs. at an interest rate of 10.85%.
  • Mrs. Verma, a businessperson, is in her mid – 40’s and resides in Ahmedabad. She is looking to create an asset in the form of real estate and is looking to invest in a property, which she has already searched for and decided on. She needs Rs. 1 crore to fulfill her dream. She visits several banks websites but is left dissatisfied with the rate of interest that they charge as well as other factors. One the advice of a trusted confidante, Mrs. Verma goes through the website of RBL Bank. She is pleased to see that she meets the eligibility criteria set by the bank and is also happy to learn of the rate of interest that would be charged to her. She speaks with her confidante who has dealt with RBL Bank for a number of years and assures her that she will not face any hassles during the loan process. Mrs. Verma once again goes on the RBL website and directly applies for the RBL Bank Home Loan from there. Very soon, she is contacted by a RBL Bank representative and on meeting, it is decided that she will have to pay an EMI of Rs. 96, 929 for loan tenure of 25 years and at a rate of interest of 10.85%.
  • Ms. Reddy has moved into a new apartment, which she is eager to set up and furnish. However, some of her old furniture has gotten too old, to the point of which she intends to sell them off. As she will need new furniture as well as the latest gadgets for her new apartment, Ms. Reddy decides to take a home loan so that she can do the same. She checks with several banks, but their rates of interest put her off. She goes online and checks the website of the RBL Bank website.  She is excited to realize that she is eligible for a loan from RBL Bank and at a rate of interest that is satisfactory to her. The next day she walks into a RBL Bank branch and meets with a bank representative. Since she has taken all the required documents, she applies for the personal loan then and there. The RBL Bank Home Loan is disbursed to her quickly as all her documents and credit score checks out. Ms. Bhatia receives a loan of Rs. 30 lakhs, with an EMI of Rs.29,079 , for a period of  25 years and at a rate of interest of 10.85%.

The following table records the EMI of each of the above-mentioned cases for easy understanding:
 

Applicant

Loan Amount (Rs.)

Interest Rate

Term

EMI (Rs.)

Mr. Sapre

50 lakhs

10.85%

15 years

56, 360

Mr. Tripathi

15 lakhs

10.85%

10 years

20, 535

Mrs. Verma

1 crore

10.85%

25 years

96, 929

Ms. Reddy

30 lakhs

10.85%

25 years

29, 079

Why choose the RBL Bank Home Loan?

RBL Bank is considered a leading provider of loan products in the loan market. The personnel engaged in the loan sanction process are highly experienced with the bank empowering them to deliver great service so that the loan process becomes smooth and hassle-free for the customer. There are no hidden charges and the bank states the list of charges upfront whenever anyone seeks to apply for a loan. The repayment options for the repayment of loan are flexible in nature so that the customer has peace of mind while applying for the loan in terms of loan repayment. Moreover, the documents required while applying for the loan are stored with the bank in a safe and secure manner which ensures that the documents in possession of the bank will never be damaged, soiled or stolen which puts the customer’s mind at ease.
 

The loan offered by bank has a wide range of use because they are issued for different needs. The loan sanction and disbursal process is simpler in nature and also very fast so that the customer does not have to wait for a long time before the disbursal of his loan takes place. There is complete transparency in the dealings of the loan process. The bank does not hide any chargeable items and the customer is told about all the relevant charges in writing upfront while he or she applies for a loan so that there is no margin of cheating by the bank. The loan process is continuously updated by the bank so that the customer can know in which stage his or her loan sanction is in.


The following points illustrate why customers prefer to avail of home loans from the RBL Bank:
 

  • Interest rates that are attractive and competitive as per industry standards
  • Easy documentation
  • Fast processing
  • Low processing fee
  • No hidden costs or charges