People from all around the globe care about one thing while getting a home loan and that is the interest rate. If the interest rate is low, they will get it and find it good for them. And if it is high, then they would find some better alternative. Recently due to the COVID-19, the central bank has reduced their repo and reverse rates by 40 basis points to 4% and 3.35%.
And due to this, the new customers an easily avail the home loans at lower rates than it was. However, it is not the only thing you should know.
There are many more factors to consider like these two-
The India’s largest lender, SBI is been offering the home loan at 6.95% per annum while the public sector banks are offering it from 6.70% to 6.85%. now the final rate will depend on the profile of the borrower. If it is a salaried persion, it will be 7% for lets say an amount of INR 30 Lakh.
On this, Bankbaazar vice president, Pankaj Bansal said- In the past, interest rates of private and government lenders have been similar. “But since the lockdown started, some private lenders have not been aggressive as the transactions are slow. They would keep the rates competitive once the transactions pick up,”