Amidst the pandemic, the buying capacity of most people has taken a beating. The scenario thus has also affected people who must have been saving to purchase a new home any time soon.
However, thankfully, banks understand the economics better than any of us and thus have brought down the interest rates on home loans to allow people sustain their dream of purchasing a house.
So if you have been looking out for cheaper home loans, then below are suggestions you might want to consider.
Kotak Mahindra Bank has significantly cut down its interest rate on home loans. The bank currently is lending home loans at the cheapest rate of 6.75 percent. To apply for the loan, one can make use of the Kotak Digi Home Loan feature on the digital platform of Kotak Mahindra Bank.
Besides Kotak, the State Bank of India (SBI) is also offering lucrative home loans at a 6.8 percent interest rate.
If you are taking a home loan for the first time, then you must be made aware that before lending, the banks are supposed to do a credit evaluation too, which defines how much loan one is elegible to get.
Other banks that offer home loan at less than 7% interest rate are:
Currently, literally, all the major banks in the county are offering home loans at a cheaper rate owing to the Reserve Bank of India’s recent repo rate cut. The RBI has kept the repo rate at a record low of 4%, due to which the banks are getting funds from the RBI at a lower interest rate.
Also, do note that the interest rate on your home loan will depend on your credit score too. If your credit score is more than 800, then you can get a home loan at a much lower interest rate. The location and the size of the property you are planning to purchase also matters when taking a home loan.