Homes Loans Are At Their Lowest. Why Wait To Own Your Dream Home?
July 23, 2020
Owning a home is a matter of great pride and accomplishment for every individual and most people avail a home loan to finance their purchase. However, the rate of interest plays an important role when considering where to apply for a home loan – whether a Bank (public or private) or an NBFC (Non-Banking Financial Company). This interest is determined by one’s ability to pay back the borrowed money and the Repo Rate (set by the Reserve Bank of India, which was linked with Home Loans last October).
A fall in the Repo Rate impacts both existing and future borrowers. Public sector banks, including the State Bank of India (SBI), generally pass on the benefit to the customers by reducing their home loan rates. The changes in the Repo Rate have a direct impact on the interest paid by the customers, hence, with the reduction in Repo Rates, the concerned banks usually reduce the Marginal Cost-based Lending Rates (MCLR), which in turn decreases the EMI on the loan.
If one sees the trend since last February, the Repo Rate was already reduced from 6.25% to 4.40% in March 2020 before the lockdown, and now, due to the COVID-19 situation and to facilitate liquidity, RBI has been continuously reducing the Repo Rate, making almost all leading banks reduce their home loan rates several times. The outcome of this has been that the interest rates on housing loans are currently available at historic lows. In the last year, it has come down from 8-9% to even below 7% in some cases. They say one must strike the iron while it’s hot and there cannot be a better opportunity for homebuyers to buy their dream than now.
New borrowers could bag a good home loan deal at the lowest interest rates and can avail the opportunity to buy a home at SOBHA CITY- Delhi NCR’s best Urban Park Residences at the best price. With six towers of SOBHA CITY being in the advanced stages of construction, there is no doubt that these home loan rates have come at the perfect time.