This increase, however, is applicable only to newly sanctioned loans and not existing loans, which means older borrowers will not be impacted by these hikes.
RBI MPC announcements today: A 0.5% drop in your home loan interest rate can save you Rs 3.83 lakh if the interest rate on your Rs 50-lakh loan for 20 years comes down from 9% to 8.5%. This will give much needed relief to old home loan borrowers who have seen their interest rate rise sharply within the last 3 years.
The home loan industry is luring in customers during the festive season by reducing home loan interest rates, waiving processing fees, and waiving EMIs and loan prepayment charges. This is a good time for borrowers to weigh options and choose the lender with the best conditions.