Govt waives interest on interest for loans up to Rs 2 crore
Is this the right time to buy a house or an apartment? Banks and non-bank finance companies are on a rate reduction spree to get you better real estate deals.
Home loan rates in India are at a 15-year low and banks and mortgage lenders are trying to attract prospective home buyers, asking them to shed their risk aversion and buy their dream homes. Kotak Mahindra Bank has cut home loan rate twice in a month to a historic low level of 6.75% which has been brought into practice from November 1.
“Home Loan at 6.75%! Covid has made our home the centre of life. Lower prices, lower stamp duty, low-interest rates could support home values going forward, like old times,” tweeted Uday Kotak, MD of Kotak Mahindra Bank.
Likewise, HDFC Bank, India’s largest home financier also recorded its second-highest monthly disbursements ever in October.
“This is the best time for anyone to buy a house. Interest rates are as low as they can get — it is very unlikely that there will be a further reduction in interest rates. Reduction in stamp duty rates has also helped to gain more buyers additionally many developers are giving discounts on property prices. Given all of that, it is the best time according to Keki Mistry, CEO of HDFC.
Indian banks reduced home loan rates by as much as 150 to 200 basis points in the last year alone. One basis point is one-hundredth of a percentage point. The reduction has been steeper this year, with the Reserve Bank of India cutting the repo rate by as much as 115 basis points and most banks linking their interest rates with the repo rate.
With the festive season in full swing, most top banks are offering concessionary rates on home loans along with a waiver of processing fees and developer’s festive offers to lure home buyers.
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