Skip to main content

After RBI rate cut, check latest home loan interest rates of top banks for loans above Rs 75 lakh

By

 The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points from 6.50% to 6.25% in its monetary policy review as announced on February 7, 2025. After the RBI repo rate cut, banks such as SBI, Canara Bank, PNB, and Union Bank among others have cut their repo linked lending rates. Most other banks are also expected to cut their lending rates in line with the RBI rate cut. After banks cut their lending rates, their home loan borrowers will have to pay less interest. Normally, when a lender cuts the lending rate, borrowers get two options: Either to go for a reduction in EMIs or reduce the tenure of the loan. The second option will help the borrowers clear their home loan outstanding faster. In case, the borrower goes for reduction in EMI then the lower lending rate of the lender would mean lower Equated Monthly Installment (EMI) for borrowers.

 

EMI is the amount you will pay on a specific date each month till the loan is repaid in full.A repo rate-linked home loan is a floating-rate home loan where the interest rate is directly tied to the RBI’s repo rate. *Extra Interest rate concession of 5 bps to borrowers opting for insurance policy and extra 0.10% on green home projects. **0.05% interest rate concession for balance transfer/ready to move proposals, Govt./PSUs/Top Corp. employees and salary account holders. What should existing home loan borrowers do now Lenders are likely to offer you the option to go for an EMI cut or for a tenure cut following the RBI’s repo rate cut. In such a case, it will be a better option for you to go for a tenure cut by keeping the EMI unchanged as it will save you on the total interest amount.

 

 

 

 

- Business Standard 01thmarch, 2025

Comments

  1. Sindoor Property Real Estate26 June 2025 at 11:07

    Sindoor Property Real Estate brings you handpicked plots for sale in Dwarka Expressway, the upcoming hotspot for residential and commercial development in Delhi-NCR. With seamless access to the airport, metro, and expressway, our plots offer a perfect mix of location, affordability, and investment potential.

    ReplyDelete

Post a Comment

Popular posts from this blog

Data storage norm splits digital payments industry

By
Data storage norm splits digital payments industry  India’s nascent digital payment industry could be thrown into disarray due to the demand by the Reserve Bank of India (RBI) that all user data be stored within the country, fears an industry grouping, which has termed the decision as “heavy-handed”, even as others, including the country’s largest digital payment provider Paytm, have hailed the move.  In a bid to narrow the growing schism, the industry is planning to send a formal representation to the regulator highlighting its concerns, a top official told ET.  “We are trying to build a consensus on the issue," said the person adding that the representation to the central bank will be ready this week.  RBI on April 6, mandated all payment companies—global and local—to set up data storage facilities within India by October. The stringent six-month deadline has attracted the ire of several sections of the industry that fear it will lead to a disruption of wel...
18 comments
Read more

Offer’s for all of you

By
Great Bumper Dhamaka Offer’s for all of you... It's Time to see your Business Online, WebeCreator Offer Website Designing with domain & Email @ nominal charges. For a year For More information visit us http://goo.gl/KlpppF call on 9890151261/9773197533  drop a mail to sales@webecreator.com
Post a Comment
Read more

Sebi to finalise options in commodities today

By
The Commodity Derivatives Advisory Committee of the Securities and Exchange Board of India ( Sebi) will meet on Friday with senior officials of the latter, to give a final shape to the rules on options trading in commodity futures, beside revising the warehousing norms to ensure good delivery on settlement. The decision taken, after discussing with the advisory committee, will be placed before the regulator’s board, to finalise the regulations. According to knowledgeable sources, three commodities in each segment, agricultural and non- agricultural, have been proposed for introducing options. It appears commodities from the soya and guar segments are preferred in the former. From the non- agri segment, it is likely that gold, silver and crude oil will be finalised. All these These have better liquidity and both the National Commodity and Derivatives Exchange and the Multi Commodity Exchange, respectively, will be able to introduce the options. In the equity segments, options ar...
17 comments
Read more