RBI Cuts Repo Rate: Glimpse Of Home Loan Interest, EMI In Top Banks For February 2019

    Date:

    Share post:

    The Reserve Back To India brought cheer in the real estate industry when it announced a cut in the repo rate by 25 basis points. The positive announcements made in the interim budget 2019, along with the recent reduction in the repo rate, is expected to boost the growth of residential realty.

    After the announced cut, the repo rate now stands at 6.25 per cent, whereas the reverse repo rate is six per cent. However, quite contrary to the popular notion, the cut may not translate into lower home loan interest rates immediately, as banks usually take time to adjust their marginal cost of funds-based lending rates (MCLR).

    Also, even after the lending bank adjusted the home loan rate, the immediate beneficiary of the rate cut would be new home buyers, because existing home loan borrowers will get the benefit only when the MCLR linked to their loan is reset.

    In the coming months, RBI’s repo rate cut may reflect in the form of softening in the interest rates across banks. Here are the present interest rate range, EMI and processing fees charged by various banks for home loans:

    Lending Bank Floating Interest Rate EMI per Rs 1 Lakh for 20 years
    Axis Bank 8.9-9.15 893-909
    Bank Of Baroda 8.75-9.75 884-949
    Bank Of India 8.7-9.6 881-939
    Canara Bank 8.75-8.95 884-897
    HDFC Ltd. 8.9-9.8 893-952
    PNB 8.75-8.85 884-890
    SBI 8.75-9.35 884-922
    Syndicate Bank 8.75 884
    United Bank 8.65 877
    ICICI Bank 9.1-9.3 906-919
    IOB 8.7-8.95 881-897

     

    Note:- The actual interest rate may vary, based on the credit profile of the loan applicant. Data in the table is only for illustration purpose.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Related Posts

    Latest posts

    5 Factors That Make Property Selling Easy with the Help of a Strategic Partner

    Written By - Nitin Gupta: Founder and Managing Director, Maestro Realtek Are you looking to sell your property quickly...

    Warning Issued by MahaRERA: 212 Housing Projects Launched After Jan 2023 Under Scrutiny

    The Maharashtra Real Estate Regulatory Authority (MahaRERA) has expressed concerns about more than 212 housing projects launched between...

    What’s Behind the Surge in Home Sales in Chennai?

    By Rohan Patil Chennai's homebuyers are on a buying spree, with approximately 10,300 homes sold in the city during...

    Luxury Housing Project Set to Launch in Noida Amid High Demand; 160 Flats Available in First Phase

    Noida, the neighboring city of Delhi, is gearing up for the introduction of a luxury housing unit, addressing...