In the recent past, the emerging Covid-19 pandemic has compelled RBI to slash the repo rate on several stages, which in turn has resulted in record-low interest rates for home loans being provided by banks. Several banks have introduced repo-linked home loans after the central bank instructed the banks in October last to adopt an external benchmark-linked loan regime for quicker propagation of rate cut advantages to borrowers across India. Resulting for which most of the banks have now reduced their interest rates on home loans and some are providing interest rates under 7% annually on home loans.
So it may be a perfect time to get ready for a home loan to take advantage of these record-low rates if you have a stable income and outstanding credit score. However, the EMIs of your repo loan may grow quickly if the RBI chooses to raise the repo rate in the upcoming times. Only the eligible borrowers who have an outstanding credit score will get the best rates. And apart from this, if your credit score decreases once during your home loan, your EMIs will probably rise until your score rises. So it is suggested to check your credit score and take essential measures to enhance your poor credit score if it is low, before applying for a home loan.
In order to get the highest possible rates, it's better to never skip a single repayment during your loan period and keep tracking your credit score frequently. So let's take a look at India's top banks - including SBI, HDFC, and ICICI Bank which are fetching interest rates under 7% per annum on home loans at present.
|Sr No.||Bank||Interest Rate|
|1||Union Bank of India||6.70%|
|2||Bank of India||6.85%|
|4||Canara Bank of India||6.90%|
|5||Punjab and Sind Bank||6.90%|
|6||State Bank of India||6.95%|