If you’ve been waiting to take a home loan in India, but haven’t yet..there’s good news for you. Home loans in India have gone to a record low in the last 6 years. Thanks for the whole demonetization initiative.
SBI announced that it will reduce its home loan rates for loans of up to 75 lakhs from 9.1% to 8.6%! Other private sector banks like ICICI are soon to follow suit. This is a great opportunity for those looking to take a home loan.
After this move, SBI’s marginal cost of lending rates (MCLR) fell to 7.75% from 8.65% steep. The rates for SBI’s one-year loans are 8% against 8.9% earlier, for two year loans 8.1% and three-year loans, 8.15%.
What does this mean to you?
For those of you who were waiting to buy an apartment/property in India, this is a good time to get a home loan. Right now, you can apply with SBI to make use of this low rates. But if you are with other private sector banks, then you need to wait until they formally announce their new rates.
My hunch is that the rates will go down even further with more banks reducing their rates and each bank wanting to get the customer’s attention. Overall, this is all good for us.