Home Loans Rates Fall Further

  Author: Abhijit Banerjee

The southward journey of home loan rates continues. It just got some fresh impetus this month with market leader, SBI having taken the lead by reducing 25 basis points or 25 percentage points for loans upto Rs 30 lakh. The home loan rate for this home loan segment is down to 8.35% p.a. from to 8.60%. ICICI Bank has followed suit by taking 30 basis points off on its home loan interest rates for housing loans upto Rs 30 lakh. Home loan major HDFC was not to be left out, reducing its home loan interest rates by 25 basis points. With market leaders having reduced housing loan rates, you can expect other banks and non banking finance companies to follow suit.

What you need to do For new home loan borrowers who were sitting on the fence wondering when to buy their home with a housing loan, the home loan rate cuts provide enough push to go for the home buying now. Existing home loan borrowers obviously need to consider part prepayment and reset of their home loan rates. This will help them reduce the financial burden of their home loan EMI commitment. One can expect home loan institutions to be willing to consider such requests.