Getting your own house is a dream for every person but because of lack of funds, not every one can afford it. But now, it is possible. How? Because according to the latest notice, home loans are getting cheaper and affordable. SBI has pegged the spread at 2.65% points above the repo rate which is 5.40%. and hence, it will result the external benchmark at the rate of 8.05%. due to this, against 8.30% floating interest rate, the effective rate will be 8.20%. and people who wants to have a home loan can take the loan up to 30 lakh based on their salary.
Furthermore, from the non salaried people, the bank, SBI will charge an additional 15 points. If someone is at the RG, higher risk grade, 4–6 will also be levied a further 10 basis points. According to the Reserve bank of India, the benchmark will be the three month treasury bill, six month treasury bill or also can be the repo rate. Or else, can be any other benchmark set by the Financial benchmarks India.
Regarding the external benchmarks, all the banks are totally free to decide. And also the risk premium can be changed according to the person’s credit assessment. It will be decided according to the loan contract. The lowest repo rate was at 2010 which was at 5.4%. the estimated fact is that 50 points will rise in a repo rate and that can lead to 2,200 INR increase in every month’s payment up to 75 lakh.