Those taking home loans expected some new relief from the Reserve Bank (RBI) this time, but it did not happen. The RBI has kept the RBI REPO Rate stable at 5.5% in the August Monetary Policy meeting. That is, there will be no change in the EMI of home loan now.
Earlier, RBI had cut interest rates in three consecutive policy meetings this year by a total of 100 basis points, but this time Governor Sanjay Malhotra said that the impact of the previous cuts is still coming out. Therefore, it was decided to keep the interest rates untouched at the moment. (Home loan interest rates)
Will your EMI increase or decrease?
Not decreasing the repo rate simply means that the banks will not make any changes in their interest rates immediately. That is, those who were thinking that EMI would be reduced further, they may have to wait a little more. However, not getting relief in EMI does not mean that you cannot do anything. If your home loan is still running at a high interest rate, then the option of balance transfer can be very beneficial for you.
How will there be big savings from balance transfer?
Suppose you have taken a home loan of Rs 40 lakh for 20 years and you are paying 9% interest on it. If you transfer it to a loan that gives it at the rate of 7.75%, then your EMI can be reduced by about Rs 3,151 and you can get an interest savings of a total of about Rs 7.56 lakh. At present, many banks are giving loans at low interest rates to customers with good credit scores through balance transfer. In such a situation, if you are still paying expensive loans, then this can be the right opportunity for you.
Which banks are giving cheap home loans?
Now talking about the current home loan rates, government banks are still giving cheap loans compared to private banks. If you are thinking of taking a home loan, then here we are telling you about the current home loan interest rates of some major banks.
Government bank will get the cheapest loan
Canara Bank and Union Bank of India are charging 7.30% interest rate on home loans. This rate in Bank of Baroda is 7.45%, State Bank of India (SBI) 7.50% and Punjab National Bank 7.55%. At the same time, if we talk about private banks, the interest rate of ICICI Bank is 7.70% or more, 7.90% of HDFC Bank, 7.99% or more of Kotak Mahindra Bank, 8.35% of Axis Bank and Yes Bank’s rate is 9.00%. As you can see, private banks have high interest rates, while government banks are giving cheap loans. Therefore, before taking the loan, compare the interest rates of different banks.
Not only a home loan, other loans will also affect
The repo rate remaining stable will not only affect the home loan, but the rates of auto loans, personal loans and MSME loan are also unlikely to happen. The strategy of banks is now ‘selective lending’ – that is, customers who have good credit scores are being given loans at a low interest rate.
Do these things before taking a loan
If you want to reduce EMI, then consider the balance transfer.
Compare the interest rates of different banks.
Maintain a good credit score, so that you can get a loan at a low interest rate.
If you are thinking of taking a new loan, then give priority to public sector banks.
If you are also troubled by the EMI of home loan, then you can save millions of rupees by managing loans in these smart methods.
