Home loans from these 11 banks including SBI and HDFC Bank gets cheaper; check details
During the coronavirus epidemic, the Reserve Bank of India (RBI) is continuously cutting the repo rate and reverse repo rate. Meanwhile, banks in the country have also made loans and especially home loans cheaper. In June 2020, the repo rate and reverse repo rate were cut by 0.40 percent by RBI. This brought the repo rate to 4 percent and the reverse repo rate to 3.35 percent.
Even before this, the central bank had cut the repo rate by 0.75 percent. Home loans have become cheaper due to continuous reduction in interest rates by RBI. At present, about 11 banks like SBI and HDFC Bank, the largest public sector banks in the country, are providing home loans at less than 7 percent interest rate to customers.
In addition, many banks have recently reduced the floating interest rates of their home loans to below 7 per cent, but the banks are providing home loans at the lowest rate to only those customers who have a good credit score. That is, their credit score is above 750. Banks increase the interest rate of home loan in case of bad credit score.
The RBI has linked home loans of many lending institutions and banks to the repo rate. Due to this, along with the reduction in the repo rate, home loans have also become cheap. However, when the repo rate increases, home loans will become expensive and you will have to pay more EMI.
Which banks are offering cheap home loans
There are altogether 11 such banks in the country that are providing home loans at less than 7 percent interest rate. These banks include
- Union Bank of India (UBI),
- Central Bank of India (CBI),
- Bank of India (BoI),
- Punjab & Sind Bank,
- Canara Bank,
- HDFC Bank,
- ICICI Bank,
- Reserve Bank of India (SBI),
- HDFC Limited,
- Bank of Baroda (BoB) and
- Punjab National Bank (PNB)
Whose interest is it?
Union Bank of India (UBI) is providing home loans to its customers at the lowest rate. UBI is offering home loans to its customers at an interest rate of 6.70 percent.
Likewise, the rate of home loan in Central Bank of India and Bank of India is 6.85 percent while the Punjab and Sindh Bank and Canara Bank are providing home loans to customers at an interest rate of 6.90 per cent.
At the same time, HDFC, ICICI Bank, SBI and HDFC Limited are providing home loans to people at an interest rate of 6.95 per cent.
Apart from these, Bank of Baroda and PNB are offering home loans to customers at an interest rate of 7 percent.
Ms Kalinga