The Reserve Bank of India or RBI that works as a central bank in India announced its monetary policy review on December 3rd. However, the new policy has kept key policy rates unchanged.
This seems to be a good opportunity for people thinking about taking a home loan policy. Any further interest rate reduction also seems unlikely in this scenario. Suvodeep Rakshit, the Vice-president and Senior Economist of Kotak Institutional Equities, said that this particular move by The Reserve Bank of India was expected. He believes that the rate will remain the same for a while now. He further said that the upward revision in the growth forecast will not allow any other changes to occur. Due to the expected inflation, the rates will not change throughout 2021.
Therefore, if you are thinking about getting a home loan, you can do so. You may also want to switch your lenders from any other bank if the interest rate is high. Currently, home loans in India are at a 15-year tenure. Home loan interest rates start at 6.75 percent with Kotak Mahindra Bank providing the cheapest home loan rate of the above-mentioned rate. It allows an EMI of Rs. 57,027. Punjab National Bank follows it by charging 6.80 percent which leads to a monthly EMI of Rs. 57,250. Amongst the non-banking financial companies, Bajaj Finserve and Tata Capital offer home loans at a 6.9 percent interest rate.
Private sector banks mostly provide a lower interest rate than any other. Lowest rates offered by the bank/housing finance companies (HFCs) give a loan amount of Rs 75 lakh. Equated Monthly Installment or EMI is calculated based on the interest rates.
Therefore, it is a good time for any home loan borrower to apply for a home loan. You can visit your nearby Kotak Mahindra Bank or Punjab National Bank for availing of the home loan or simply finish the process online.