The impact of RBI’s repo rate decreasing has started appearing on the interest of the home loan. The interest rates on the home loans of many banks have come down to 8 per cent. Public sector banks have shown haste in reducing interest rates on home loans. They have reduced the interest of home loans for new and old customers. This is good news for people planning to take a home loan. Also, people who have taken home loans have also got a lot of relief from this. People who have taken home loans were expecting their EMI to decrease for a long time.
RBI has reduced the repo rate twice this year
The RBI started a process of reduction in interest rate earlier this year. After several years, for the first time in February, he had reduced the repo rate by 25 basis points. Then in April he reduced the repo rate 25 basis points. Due to this, the repo rate has come down from 6.5 per cent to 6 per cent. It is said that even now some banks have not reduced the interest rates of home loans. The reason for this is not known.
Interest rate event required after reduction in repo rate
MortGageworld founder Vipul Patel said, “Some banks have increased the spread. This has not given the benefit of interest reduction to new home loan customers. However, in RBI rules, it has been said that banks will also have to give full advantage of reducing repo rate to the current customers of home loans.” However, it is a matter of concern that some banks do not reduce interest rates even after decreasing the repo rate.
Private banks did not reduce interest rate
In January this year, ICICI Bank was offering loans to home loan customers at 8.75 per cent interest rate. In February and April this year, there has been no decrease in the interest rate of the home loan of ICICI Bank, despite the lack of 25-25 basis points in the repo rate. This information is received from the bank of 9 May of Bank Bazar. Axis Bank has also not reduced interest rates for home loan customers. However, HDFC Bank has reduced the interest rate of home loan by 25 basis points.
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Banks decrease interest according to their policy
Bank Bazar CEO Adil Shetty said that banks reduce the interest rates of home loans according to their policy and business priority. This time public sector banks have shown agility in reducing interest. Jenith Finserv founder Anuj Kesarwani said that many public sector banks have given full advantage of the reduction in interest rate to customers. However, private banks have not done so yet.