The Reserve Bank of India, last week, announced a 50-basis-point cut in repo rate brining it down to 5.5% after its three-day Monetary Policy Committee (MPC) meeting. With the reduction in the key lending rate, many banks are expected to pass on the benefits to customers.
After the repo rate cut, banks will receive funds at cheaper rates from the RBI. Many lenders have revised their interest rates, following the repo rate cut.
The apex bank's move is set to make borrowing cheaper and homebuyers are expecting a major relief in their home loan interest rates.
This latest action by the RBI follows its April announcement, where the central bank decreased the repo rate to 6%. That earlier reduction had caused many banks to revise their floating-rate loan interest rates, which in turn resulted in lower equated monthly instalments (EMIs) for home loans. A floating rate loan has an interest rate that varies over time, usually linked to changes in a benchmark lending rate, like the repo rate.
With the latest announcement, retail loan rates are expected to reduce further and result in increased economic activity. Top lenders, including the State Bank of India, are yet to announce a revision in the interest rates, but a few other banks have already reduced interest rates.
Lowest Home Loan Interest Rates
Home loan interest rates vary from lender to lender and depend on several factors. Banks consider factors like credit history, CIBIL score, borrower's profession and other financial details to offer home loans at lower interest rates. The home loan interest rates can also be impacted by factors like loan amount and overall tenure.
At present, banks are offering home loan interest rates starting at 7.85% per annum. Bank of Maharashtra, Canara Bank and Union Bank are some of the lenders offering home loans at interest rates below 8%. On the other hand, private players like Axis Bank and HDFC Bank offer loans at upwards of 8% interest rates.
Top Banks With Lowest Home Loan Interest Rates
The interest rates displayed in the chart above reflect the usual range provided by banks. However, the specific rate charged on your home loan may differ based on various factors, such as your employment, income, credit history and loan tenure.
https://docs.google.com/spreadsheets/d/1lhCMLEIv0tz55ZqKjp1O6EvSwaVdWiJtWCpQ50ZBhN0/edit?usp=sharing
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