Home Loan: RBI's big decision, now these banks are giving cheap home loans..

RBI Latest Update: Recently RBI has reduced the repo rate. Due to this, banks across the country have also changed the home loan interest rate. Due to the reduction in interest rates, it has become even easier to take a home loan.

RBI has recently cut the repo rate by 50 bps. The central bank has cut the repo rate by 100 bps in three times. After this, many government and private banks have cut interest rates.

Good news is coming for home loan takers. RBI has recently cut the repo rate by 50 basis points. This is the third consecutive time this year that the central bank has reduced interest rates. In this way, interest rates have been reduced by 100 bps in the first six months only.

Repo rate is the interest (Repo rate update) rate at which RBI gives loans to banks. This rate is very important for banks in deciding the rest of the interest rates. Due to the reduction in repo rate, the interest rates of home loans are also expected to come down. This will reduce the monthly installment (EMI) of the people or the time to repay the loan will be reduced.

If your home loan is linked to the repo rate, then you will see a reduction in interest in the coming months. Many banks have already started changing their repo-linked lending rates. It is expected that interest rates are going to come down further.

SBI, the country's largest government bank, has reduced its lending rates. Interest rates may vary. However, it depends on the credit score of the loan taker, how long the loan has been taken, and what are the policies of the bank.

Difference between private and government bank loans-

After RBI reduced the repo rate, Canara Bank, Union Bank, and Indian Overseas Bank have also reduced lending rates. Due to this the EMI of the home loan will be reduced.

Loan takers (Home Loan EMI) should also pay attention to some other things, such as processing fees, prepayment penalties, loan time, and customer service. Usually government banks charge less fees but their working method can be a little slow.

Apart from this, private banks pass the loan quickly, but their fees are slightly higher. Because of this, it is very important to compare the interest rates and terms of all the banks before taking a loan. This will help you choose the best home loan.

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