How much home loan interest rates have fallen in last one year

Indian banks have reduced rates on home loans by as much as 150 to 200 basis points only in the last year alone. One basis point is one-hundredth of a percentage point. The cut has been steeper this year with the Reserve Bank of India cutting the benchmark 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 waiver in processing fee to lure home buyers.

ET takes a look at the steep fall in interest rates on home loans for salaried borrowers in the last one year.

Banks lure buyers with cheap loans

Interest rate on loan amount up to Rs 30 lakh Interest rate on loan amount between Rs 30 lakh – Rs 75 lakh
Union Bank 6.70% 7%
SBI 6.90% 7%
HDFC 6.90% 7.20%
ICICI Bank 6.90% 7%

Interest rates as on Oct 2020

Interest rates same time last year

Interest rate on loan amount up to Rs 30 lakh Interest rate on loan amount between Rs 30 lakh – Rs 75 lakh
Union Bank 8.25% 8.35%
SBI 8.05% 8.20%
HDFC* 8.35% 8.65%
ICICI Bank* 8.90% 9.30%

Interest rates as on Oct 2019
(*HDFC interest rates are linked to prime lending rate while ICICI Bank was linked to marginal cost lending rate. While SBI & Union Bank are linked to external benchmark based lending rate)

Source: Banks’ websites


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