These banks are offering home loans below 7% interest rate

 Borrowers of home loans have been benefiting from multi-year low interest rates for quite some time. Things may soon change, as India's largest lender, the State Bank of India (SBI), raised its base rate by 10 basis points (bps) last week. With effect from December 15, 2021, SBI's new base rate is 7.55 percent. A bank's base rate is the lowest rate at which it can lend money to its customers.

It, if you're wanting to buy a house with a home loan, now might be an excellent time to do so. In fact, many banks are now offering loans with interest rates as low as 7%.

For example, the repo-rate linked house loan offered by Union Bank of India starts at 6.4 percent. SBI Term Loans start at 6.65%, whereas HDFC Bank home loans start at 6.95 percent. The Bank of Maharashtra is giving housing loans with interest rates starting at 6.40 percent. For salaried borrowers, these are the house loan rates. Some of the banks that provide reduced interest rates are as follows:

What is repo-rate linked home loan?

The RBI has required banks to tie house loan interest rates to an external benchmark since October 1, 2019. For most banks' house loans, the repo rate has been utilised as a benchmark. These home loan interest rates will move in lockstep with the external benchmark, such as the repo rate, to which they are linked.

  • The Reserve Bank of India (RBI) has instructed banks to tie their retail lending interest rates to one of the following external benchmarks:
  • The repo rate set by the Reserve Bank of India
  • India's government 3-months Financial Benchmarks India Pvt. Ltd. reported the Treasury bill yield (FBIL)
  • India's government 6-months FBIL publishes Treasury bill yields.
  • Any other market interest rate issued by the FBIL as a benchmark

The RBI announced its decision to maintain rates steady following its bi-monthly monetary policy review meeting on December 8, 2021. The current repo and reverse repo rates are 4% and 3.35 percent, respectively.
The repo linked lending rate (RLLR) is a lending rate that is connected to the repo rate of the Reserve Bank of India.

How will your EMI change in the new external benchmark linked lending rate regime?

Some banks have internal risk assessment teams to categorise borrowers based on credit risk, while others rely on credit scores to classify each borrower's risk. According to the RBI circular, if your credit score changes significantly, the bank may adjust the risk premium imposed on your house loan.

Conclusion

There's no need to be discouraged if your personal loan application is turned down. To boost your chances of loan approval, simply work on improving your credit report and following the methods outlined above. Once you've completed this checklist, you're ready to submit your personal loan application.To find about the best pricing and deals, call our toll-free number +91-9477079053. They'll help you in every way they can. Please contact me at Best Home Loan In India if you have any more.

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