Home loan: Is this right time to go for it, as banks may raise rates?
IDBI Bank has already increased its one-year MCLR rate to 8,65 percent, making its loans more expensive for customers. The bank has also increased its two-year and three-year MCLR rate to 8.7 percent and 8.8 percent, respectively
)
06:12 PM IST
If you are thinking of taking a home loan then you must do it as early as possible, as banks are likely to increase their interest rates in near future. IDBI Bank has already increased its one-year MCLR rate to 8,65 percent, making its loans more expensive for customers. The bank has also increased its two-year and three-year MCLR rate to 8.7 percent and 8.8 percent, respectively. This rate has been made effective from May 12. The bank has increased MCLR in the range between 0.5 bps and 0.10 bps.
This is the base rate at which banks provide loans to its customers. If banks get cheaper loans then they also lend at cheaper rates to their customers and vis-a-vis. An increase in the MCLR means, your loans will come at a higher rate, and you will have to shell out more for auto loans, home loans, personal loans or any other loans.
The country's largest lender State Bank of India (SBI) recently increased its home loan rate for up to Rs 30 lakh from 8.35 percent to 8.65 percent. Allahabad Bank is also providing the home loan amount up to 30 lakh at 8.35 percent.
Other banks including Axis Bank and Bank of India are giving home loans up to Rs 30 lakhs at 8.4 percent, according to Bank Bazaar. For home loans between Rs 30 lakh and 75 lakh, Allahabad Bank, Dena Bank and SBI are charging 8.35 percent. These banks are also charging the same rate for loans over Rs 75 lakhs, according to the financial services company website.
ICICI Bank, however, is charging between 8.75 and 8.95 per cent for loans over Rs 75 lakh, while HDFC Bank is providing loans at 8.6 percent for the amount exceeding Rs 75 lakh. As the banks are increasing their loan rates, this is the right time to go for home loan.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
Top 6 Largecap MFs with up to 39% Return in 6 Months: No. 1 fund has turned Rs 20,000 monthly investment into Rs 1,31,527
)
Power of Rs 13,000 SIP: How long will it take to turn Rs 13,000 monthly investment into Rs 5,00,00,000 corpus?
)
Top 5 Midcap Mutual Funds With Best SIP Returns in 7 Years: Rs 13,000 monthly SIP in No. 1 fund has led into Rs 31.02 lakh wealth
)
Rs 19 Lakh Lump Sum Investment in Mutual Funds: How many years can it take to create a Rs 1 crore, Rs 2 crore & Rs 3 crore corpus?
)
10 Stocks To Buy For Long Term: Analysts recommend largecap, midcap, smallcap scrips; Glenmark Pharma, TCS on the list
)
SGB Gold Bond vs Top Gold ETF: Which has given higher return on Rs 5 lakh investment in 5 years? See returns and calculations
)
8th CPC for Paramilitary Forces: How basic pay of BSF's SI, inspector, commandant, DIG & others can be revised at 2.28, 2.57 fitment factors
06:12 PM IST