The Reserve Bank of India twice cut interest rates this year, but banks have been slow to cut their own lending rates.
|Interest Rate Cut||Current Interest Rate on Home Loan|
|State Bank of India||0.25%||9.90%|
It is widely expected that many other banks in the country would follow the largest lenders in the business and drop interest rate. A few of them have already cut their prime lending rates.
Interest rates in the economy have already begun falling as the RBI has twice cut interest rates this year. The first set of loans that tend to fall are home loans, followed by a host of other loans.
The fall in home loan interest rates will help reduce the EMI for home loan borrowers and would also help new borrowers, avail loans at lower rates.
Analysts are by and large expecting another drop of 0.25 per cent in interest rate and an overall drop of 0.50 per cent by the end of the year.
This is expected to make home loans even cheaper going forward. All in all if you are looking to avail of home loans it may not be a bad time as interest rates are falling.