Aug 08, 2024 11:29 AM IST
Owing to RBI maintaining the status quo, the home loan interest rates and equated monthly instalments (EMIs) remain unchanged for borrowers.
The Reserve Bank of India (RBI) kept repo rate steady at 6.5 percent for the ninth time in a row in its Monetary Policy Committee (MPC) review. Owing to RBI maintaining the status quo, the home loan interest rates and equated monthly instalments (EMIs) remain unchanged for borrowers.
Read more: UPI limit increased from ₹1 lakh to ₹5 lakh per transaction
Banks have linked floating-rate retail loans to repo rate in most cases since October 1, 2019. Owing to this, any change in the repo rate directly influences the interest rates on those loans.
Have banks changed home loan rates this year?
This year, HDFC Bank increased home loan rates for new borrowers by 40 basis points (bps) despite repo rates being steady. For HDFC Bank, the lowest interest rate on a ₹50-lakh home loan was 8.35 per cent in January. At present, for HDFC Bank, the lowest rate is 8.75 per cent.
Read more: RBI keeps repo rate unchanged at 6.5%; Inflation, GDP growth forecast for FY25 retained
State Bank of India (SBI) and Bank of India both raised their effective new home loan rates by 10 bps. In April, the lowest home loan rates at SBI and Bank of India for a ₹50-lakh loan were 8.40 per cent and 8.30 per cent, respectively. In May this year, these rates went up to 8.50 per cent at SBI and 8.40 per cent at Bank of India.