Home Loan rates increased again 9.30 (non overdraft SBI)
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This is the second or third time in last 6 months.
Where people invested in real estate since loan were cheap and now regretting since rates increased
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@mandass If your CIBIL score is 750+ (or better 800+), do some checks on the current rates by HDFC Ltd (not bank) & other PSUs... then go to your branch to negotiate.
HDFC Ltd used to give a pre-approved home loan letter some years back - not sure if they still do so. Check & maybe you can use that to negotiate with SBI to get the special rate which is valid till end of March.
This holds good for new applications. Anyways rate of interest for other banks are anyways higher than sbi
I Guess you have taken the Floating Interest Rate Home Loan and Not FIXED Interest Rate Home Loan.
Which simply means, whenever the RBI will increase the REPO Rate lets say by 25 basis points it will eventually affect your Interest Rate (Floating) Home Loan because 2 years back RBI REDUCED REPO RATE, It means when the RBI needs to pump funds into the system, it lowers the repo rate. Consequently, businesses and industries find it cheaper to borrow money for different investment purposes. It also increases the overall supply of money in the economy and now they are increasing it because REPO RATE has directly relation with Inflation and to control Inflation and many other macro economic factors they are doing it.
Banks might try & push for fixed tenors now, but I think home loan borrowers are not as ignorant as they used to be, say 10 years back. So banks might face a hard time if they try to push for fixed rate home loans now.
SBI is cunningly not giving special concessions this month on MaxGain (overdraft loan) & offering concessions only on the normal HL.. so your premium for taking maxgain jumps from 0.40% to 0.80%!! Really bad!
I part payed (majority) actually my home loan account during COVID time(mid 2020-mid 2022) when the rates were low assuming that it will rise in few qtrs down the line. My decision was correct, with new rates my outgo is very minimal and will finish my loan at the end of year 🙂
Should have saved it for fd.. Now fds giving 7.5-8%.. Enjoy loans at 3-4% effectively 😄
Means fd rates also increased
@YoYoDesiBeat hpoe you got the math right.
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I think these rates(around10%ROI) will continue for another 2-3 yrs