Home loan interest comes down
Posted on: 02/Apr/2016 11:04:08 AM
The interests on home loans have been lessened due to new bench mark rate. This has come into effect from yesterday. The revision follows a shift in the way banks across the country calculate their lending rates. New rules announced by the Reserve Bank of India in December 2015 take away from banks the freedom to decide when to revise rates.
For example if a house loan is given in the month of April, the interest rate will be 9.3 percent as per the new formula. This will become less next May. But the benefit will not be there immediately. A person has to wait 9 months. Since there will be change in interest every month, there will be 12 different types of interest rates.
ICICI Bank has also announced a one-year MCLR of 9.2 percent but the bank has not yet announced the mark-up at which it will provide home loans. At HDFC Bank, for one year loan, the interest rate will be 9.20 per cent while for two years it will be 9.3 per cent. The rate of interest will be 9.35 per cent for tenor of three years. At present, the base rate of the SBI stands at 9.30 per cent and it provides home loans at 9.55 per cent, after including a spread of 25 basis points.
