INSUBCONTINENT EXCLUSIVE:
Several banks offer easy home loans starting as low as 6.75 per centBuying or building a house has been that one dream most Indians have had
in their entire life cycle
Taking that into account, government policies have regularly been updated to suit the changing needs of home buyers and the dynamics of the
That's probably one of the reasons why home loans qualify for tax deduction under section 80C
Home loans also ensure multiple other tax benefits
Since the sector has been badly hit by the pandemic, most banks and other finance companies have reduced their interest rates to historical
lows to encourage people to invest more in the sector and revive housing demand.In this background, realtors welcomed the recent decision by
the Reserve Bank of India (RBI) to keep policy rates unchanged and said the low-interest regime for housing loans is likely to continue for
Housing loans can be taken for buying or constructing a new house or even repairing an old one.People take the interest rate on their
housing loans seriously as it impacts the final cost of the house and also the EMI outgo
They prefer high-value loans for longer tenures, so even a little change in interest rate can lead to big savings or unwanted expenses
Banks usually offer home loans at floating rates, which change from time to time based on external benchmarks
Most banks follow RBI's repo rate as their external benchmark
Floating rates offer another benefit: there's no penalty on paying early.Some though offer home loans at a fixed rate, where the interest
rate does not fluctuate with the changing market forces
Another benefit of the fixed loan is stability: you can plan your repayment for the loan tenure as the monthly installment will remain the
However, lenders charge a little higher rate for this type of home loan
It's wise to take this type of home loan when the interest rate is low so that you get the most benefit.Several banks offer easy home
loans starting as low as 6.75 per cent
Some banks levy a processing fee on home loans, so people should do detailed research about which bank is charging how much fee to approve
