Home Loan Rates at the Lowest in Last Six Years
May 19, 2017 Home Loan
Following Prime Minister Modi’s directive, banks have stepped forward in reducing the lending loan rates for the benefit of the middle class, lower class and senior citizens. India’s biggest bank, the State Bank of India has cut their loan rates steeply by 90 basis points. Other banks are expected t follow the suite and reduce their lending rates as well.
Because of banks’ decision to reduce the lending rates, the home loan rates will fall down as well. The home loan rates reduced by the State bank of India have fallen from 9.10 percent to 8.6 percent. Also, the state bank of India announced their decision on Sunday that their Marginal cost lending rate (MCLR) will reduce from 8.95 percent to 8 percent. MCLR are the benchmark against which the home loan rates are decided, hence it is expected there will be further reduction the home loan rates.
Other banks such as IDBI bank, Union bank of India, Punjab National Bank have decided to reduce their home loan rate.
SBI home loan rate: reduced to 8 percent from 8.9 percent
Union bank home loan rate: reduced to 8.65 percent from 9.3 percent
IDBI bank home loan rate: reduced to 9.15 percent from 9.3 percent
State bank of Travancore home loan rate: reduced to 9.2 percent from 9.45 percent.
India overseas bank home loan rate: reduced to 9.15 percent from 9.5 percent.
Punjab national bank home loan rate: reduced to 8.45 percent from 9.15 percent.
Since the banks have been flooded with the cash since demonetization, it has led to a reduction in the cost of fund for lenders. It has been estimated that the banks have acquired around Rs 14.9 lakh crore in last 50 days.
Most banks are offering lower interest loans for the benefit of the buyers. If your bank is not offering a lower interest rate, it is better to switch the loan lender. Even though it will involve a lot of paperwork and some amount is chargeable by the bank for transferring the loan, it will be better in the long run. It is better to pay a small fee now and pay reduced monthly EMI with reduced loan term than pay the higher amount for the long term.
Because of banks’ decision to reduce the lending rates, the home loan rates will fall down as well. The home loan rates reduced by the State bank of India have fallen from 9.10 percent to 8.6 percent. Also, the state bank of India announced their decision on Sunday that their Marginal cost lending rate (MCLR) will reduce from 8.95 percent to 8 percent. MCLR are the benchmark against which the home loan rates are decided, hence it is expected there will be further reduction the home loan rates.
Other banks such as IDBI bank, Union bank of India, Punjab National Bank have decided to reduce their home loan rate.
SBI home loan rate: reduced to 8 percent from 8.9 percent
Union bank home loan rate: reduced to 8.65 percent from 9.3 percent
IDBI bank home loan rate: reduced to 9.15 percent from 9.3 percent
State bank of Travancore home loan rate: reduced to 9.2 percent from 9.45 percent.
India overseas bank home loan rate: reduced to 9.15 percent from 9.5 percent.
Punjab national bank home loan rate: reduced to 8.45 percent from 9.15 percent.
Since the banks have been flooded with the cash since demonetization, it has led to a reduction in the cost of fund for lenders. It has been estimated that the banks have acquired around Rs 14.9 lakh crore in last 50 days.
Most banks are offering lower interest loans for the benefit of the buyers. If your bank is not offering a lower interest rate, it is better to switch the loan lender. Even though it will involve a lot of paperwork and some amount is chargeable by the bank for transferring the loan, it will be better in the long run. It is better to pay a small fee now and pay reduced monthly EMI with reduced loan term than pay the higher amount for the long term.
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