Check which bank offers the cheapest interest rate on home loan:
Home Loan Interest Rates: As the RBI has raised interest rates in the country six times in a row, lenders have also raised their lending rates
Even as the real estate sector in the country is witnessing a sharp uptick in demand with both residential as well as commercial realty gaining pace, home loans also become relevant. The RBI has raised interest rates in the country six times in a row, prompting banks, including Axis Bank, SBI and HDFC, to make loans costlier. Higher interest rates on home loans also make the housing cost higher. Here are banks that are offering lower interest rates than others.
Lenders With Their Home Loan Interest Rate Offerings (Annual Interest Rates):
- Axis Bank: 8.75%
- Kotak Mahindra Bank: 8.65%
- Union Bank of India: 8.6%
- Indian Overseas Bank: 8.6%
- Bank of Maharashtra: 8.6%
- Central Bank of India: 8.55%
- Bajaj Finserve: 8.6%
- Aditya Birla Housing Finance: 8.75%
- LIC Housing Finance: 8.6%.
Interest rates on the home loan vary from person to person. If you have an excellent CIBIL score, you will get a cheaper interest rate as compared to those with lower scores. Also, the higher the amount of the loan, the higher the interest rates.
The RBI has been continuously increasing the key repo rate in order to control inflation in the country, thus prompting lenders to raise their lending rates. It has raised the repo rate six times by 250 basis points in total since May 2022 in order to control inflation. In the last MPC meet last month, the RBI raised the key repo rate by 25 basis points to 6.50 per cent. The RBI MPC will meet early next month to decide on the further course of action on interest rate.
Real Estate In India
In a recent survey conducted by the CII, 59 per cent of respondents are strongly inclined to invest in real estate, while only 28 per cent continue to prefer investing in Indian equity markets. Nagpur, Coimbatore and Indore have the highest year-over-year rental demand, propelling the growth of India’s commercial real estate sector. This expansion is also evident in the office leasing market, which is anticipated to increase by 10 per cent to 15 per cent in the coming fiscal year.
In 2022, the office, warehouse, residential, and retail real estate sectors collectively attracted private equity investments totalling $5.1 billion. This demonstrates the industry’s optimism regarding the sector’s growth.
With rising household incomes and an increase in the number of Indians among the world’s wealthiest individuals, the ultra-luxury residential real estate market has been booming, with demand frequently exceeding supply. Even in markets such as Mumbai, Delhi, Bengaluru, and Kolkata which have historically had a healthy pipeline of such units, consumers are increasingly opting for projects with amenities comparable to those provided by international developers.
Read all the Latest Business News here
Leave a Reply