Living in the COVID-19 pandemic era has created a lot of tensions for working professionals as they are struggling to retain their jobs and manage monthly expenses. Many NRIs had to return to their native in India owing to the global financial crisis and job losses. However, amidst all the gloom, there is a ray of hope for those who are dreaming about buying their own home in India. This year the home loan interest rates have touched a historical low as a result of RBI’s revised monetary policies to boost economic growth in India. State Bank of India, one of the largest banks in the country now offers interest rates as low as 6.9% which is a record drop as compared to the previous years. A lower interest rate will not only reduce the interest paid on the loan but also the monthly EMI burden. Most of the banks are now offering 80-90% of the loan amount, so you don’t have to pay a huge amount of money upfront.
Few examples of Home Loan interest rates by Leading Banks:
Additional Benefits with RBI’s Repo rate cut
Besides the interest rate reduction, another favorable factor for prospective homebuyers is the repo rate reduction announced by RBI during the nationwide lockdown. With the repo rate cut by 40 basis points (100bps=1 percent), the repo rate now stands at an all-time low of 4% and the reverse rate is at 3.35%.
Considering all these aspects, homeownership is becoming more and more affordable for the common man. Having a permanent home is not just a dream come true but it is also a way of securing your family’s future. Real estate is a perfect investment option in these uncertain times as it promises you good returns. Even if you are not planning to stay in the home, you can earn money through rental income.