Most banks have reduced their lending rates by 0.25% and the new rate for most banks is at 9.9%
Recently many banks, including SBI, HDFC Bank, Axis Bank and ICICI Bank have cut their base rates or the minimum rate of interest they charge to their customers.
NBFCs such as India Infoline Housing Finance (IIHFL), DHFL and India Bulls have also cut their base rates. Most banks have reduced their lending rates by 0.25% and the new rate for most banks is at 9.9%. IIHFL has cut home loan rates by 0.25 per cent to 9.9 per cent. It expects home loan interest rate cut to benefit affordable housing segment borrowers.
According to Rishi Mehra, Co-Founder, Deal4loans.com, “A cut in interest rates would prompt customers to apply for home loans. Now for a Rs. 30 lakh loan, the EMI will be Rs. 28,752 for 20 years against a rate of 10.15% per annum it was Rs. 29,249 for a similar tenure.”
Lower EMIs, would attract customers to enter realty market. For instance, during 2008-09, when rates were 8%-9% the demand for buying property was much higher. Now with reduced rates, we anticipate a rise in demand, Mehra added.
| Bank | New Rates |
| ICICI Bank | 9.90% |
| SBI | 9.85%(For Women Borrowers) 9.95% (for others) |
| HDFC | 9.90% -10.40% |
| Axis Bank | 9.95% |
| DHFL | 9.90% |
| Indiabulls | 9.90% |
NBFCs such as India Infoline Housing Finance (IIHFL), DHFL and India Bulls have also cut their base rates. Most banks have reduced their lending rates by 0.25% and the new rate for most banks is at 9.9%. IIHFL has cut home loan rates by 0.25 per cent to 9.9 per cent. It expects home loan interest rate cut to benefit affordable housing segment borrowers.
According to Rishi Mehra, Co-Founder, Deal4loans.com, “A cut in interest rates would prompt customers to apply for home loans. Now for a Rs. 30 lakh loan, the EMI will be Rs. 28,752 for 20 years against a rate of 10.15% per annum it was Rs. 29,249 for a similar tenure.”
| Loan Category | Top Up Amount (Rs) | ROI | Tenure | EMI | Total Interest paid |
| Home loan | 30 lakh | 10.15% | 20 | 29,249 | 4,019,862 |
| 30 lakh | 9.90% | 20 | 28,752 | 3,900,520 |
Lower EMIs, would attract customers to enter realty market. For instance, during 2008-09, when rates were 8%-9% the demand for buying property was much higher. Now with reduced rates, we anticipate a rise in demand, Mehra added.
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