Starting 1 July 2020, the State Bank of India has been offering home loans starting at 6.95%. While other public sector banks have been offering loans as low as 6.70%
The interest rates on home loans have been falling since the Reserve Bank of India (RBI) earlier started reducing policy rates to revive the economy that has taken a beating due to the covid-19-lockdown. In its last monetary policy meeting, the central bank had reduced the repo rate by 40 basis points (bps) to 4% and reduced the reverse repo rates by 40 bps to 3.35%. One basis point is one-hundredth of a percentage point.
Starting 1 July 2020, the State Bank of India has been offering home loans starting at 6.95%. While other public sector banks have been offering loans as low as 6.70%.
The interest rates on home loans have been falling since the Reserve Bank of India (RBI) earlier started reducing policy rates to revive the economy that has taken a beating due to the covid-19-lockdown. In its last monetary policy meeting, the central bank had reduced the repo rate by 40 basis points (bps) to 4% and reduced the reverse repo rates by 40 bps to 3.35%. One basis point is one-hundredth of a percentage point.
Starting 1 July 2020, the State Bank of India has been offering home loans starting at 6.95%. While other public sector banks have been offering loans as low as 6.70%.
A home loan is probably the biggest loan that one takes. Not only in terms of the loan amount but also tenure, which can be 15 years or more. The total final amount that one pays can be double of what was borrowed. But a home loan is among the cheapest loans available, and usually it is the only way a person can buy a house.
A home loan is called a ‘good’ loan because it helps you acquire a tangible asset that can appreciate over the long term. It makes sense to buy a house if you plan to live in it. Given the fact that the construction of several housing projects in India continues to be delayed or stalled by many years, financial advisers say that one should buy a ready-to-move-in house.
Here’s a look at the lowest home loan interest rates of some leading banks.
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