If you are considering taking out a home loan, now is the perfect time to take the plunge. But don’t forget to have a repayment plan in place to avoid any financial stress later on.
Home loan interest rates are at an all-time low with rates starting at 6.4%. The Reserve Bank of India’s decision to suspend policy rates for more than a year has also contributed to the offer of concessional rates to customers. Indeed, many banks benchmarked their lending rates to the RBI repo rate after October 2019. Banks that did not peg their lending rates to the repo rates also offer low rates to stay competitive.
In addition, many banks across the country have also rolled out holiday home loan offers to attract potential borrowers. Many popular banks in the private and public sector also offer other festive offers such as the elimination of processing fees or the elimination of the distinction in tariffs for employees and non-employees. It is therefore the ideal time to opt for a mortgage.
Borrowers of existing home loans can also take advantage of this low interest rate scheme and turn to banks offering lower rates. That said, it’s important to note that banks have linked their festive offers to a borrower’s credit profile. So, if your credit score is below 650, you may find it difficult to get a loan. For example, a major public sector bank announced that borrowers with a credit score above 800 can obtain home loans at an interest rate of 6.7%, according to BankBazaar.
More than 20 banks and housing finance companies currently offer loans below 7%. So, if you are considering taking out a home loan, now is the perfect time to take the plunge. But don’t forget to have a repayment plan in place to avoid any financial stress later on.
If you are already managing a home loan and are in the first phase of the term, you may consider refinancing and downgrading to a lower rate to reduce your interest payment burden. But before you do, do your calculations on the final savings, as refinancing comes with a host of costs such as foreclosure fees, mortgage deed fees, processing fees, and more.
If you are considering taking out a home loan, the table below provides a list of banks and housing finance companies – including SBI, HDFC, ICICI Bank, Axis Bank, PNB and LIC HFC – that offer loans real estate below 7% for an amount under Rs 30 lakh.
Note that the interest rate applicable to you could be higher depending on your age, gender, income, credit score, loan amount, property value, LTV ratio or any other condition stipulated by your lender.
Banks and HFCs are currently offering the lowest interest rates on home loans under Rs 30 Lakh
Disclaimer: Interest rates that vary by tenure or credit rating in the specified loan amount are shown as a range, and banks have been listed in ascending order based on their interest rates. current home loans for loans below Rs 30 lakh. Data taken from the websites of the respective banks on October 22, 2021. * Including the balance transfer rate ^ Including the concession for the holder of the salary account in the same bank
Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.
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