Interest rates on home loans have reached a 15-year low after the RBI cut the repo rate on Friday. The EMI moratorium has also been extended for the next three months.
Home loan borrowers have found great relief in fulfilling their dream of owning a home. The central bank’s repo rate has been reduced by 0.40%, bringing the home loan interest rate to about 7%.
In addition, people facing cash shortages due to the Corona virus crisis have been given an additional three months to pay the installment. Faced with financial difficulties, they can take advantage of the extended three-month period.
For existing borrowers on home loans up to Rs 30 lakh, SBI’s interest rate will be reduced from the current 7.4% to 7%. Interest rates for women borrowers will be reduced by 0.05%.
Since the home loan interest rate was linked to the repo rate in October 2019, the interest rate has been reduced by 1.4%. The interest rate on a home loan of Rs 30 lakh has now come down to an EMI of Rs 19,959 from Rs 1,896 in October.