The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) met from August 4 to August 6 and made an important decision about interest rates. The MPC decided not to change this rate it will remain at 5.5%. RBI Governor Sanjay Malhotra delivered his fourth monetary policy statement since taking over from Shaktikanta Das.
They also said their policy stance is ‘Neutral which means they are not planning to raise or cut rates immediately, they will watch how the economy is doing and decide later. A neutral stance gives the RBI flexibility to adjust policy in either direction, depending on inflation and growth trends. The announcement was made by RBI Governor Sanjay Malhotra, who took over after Shaktikanta Das.
Over the past three months, the MPC had cut the repo rate three times in a row, bringing it down by a total of 100 basis points (1%). This was likely done to boost economic activity by making borrowing cheaper for businesses and consumers.
Since the central bank has kept the repo rate unchanged, so loan rates remain largely stable. However, borrowers should compare lenders to secure the best terms. Based on data from Paisabazaar.com, Home Loan Interest Rates of different banks.
Public Sector Banks (Government-owned banks)
-
State Bank of India, Punjab National Bank, Canara Bank interest rates start at 7.50%.
-
Union Bank of India, Bank of India interest rates start from 7.35% and can go up to 10.10% or more, depending on customer credit score
-
Indian Overseas Bank, Indian Bank, Central Bank of India interest rates range from 7.35% to 7.40%
Private Sector Banks
-
ICICI Bank, HDFC Bank interest rates start at 7.50%and7.90% respectively.
-
Kotak Mahindra Bank, South Indian Bank interest rates start from 7.75% and can go up to 7.99% or more
Axis Bank, Bandhan Bank, CSB Bank interest rates can go up to 15%, based on customer credit risk.
Housing Finance Companies (HFCs)
- LIC Housing Finance, Bajaj Housing Finance, ICICI Home Finance interest rates is between 7.35% and 7.50%.
- PNB Housing Finance, Aditya Birla Capital, Godrej Housing Finance interest rates is between 8.25% and 8.55%.
- SMFG India Home Finance, Sammaan Capital has the higher rates i.e. from 8.75% to over 10%.
Every banks and housing finance companies has different interest rates, fees, and terms. It’s important for borrowers to look at multiple options instead of choosing the first one they find. Even a small difference in interest rate can make a big impact over the life of a home loan. Borrowers should compare offers carefully, factoring in any concessional rates (for women or insured borrowers) and choose lenders that best suit their credit profile and financial needs.