Due to fall in RBI norms, BOB, BOI, Bank of India and Bank of Maharashtra have come up with a plan to reduce the interest rates on home loans.
Union Bank from BOB to BOI: At the 2020 December policy meeting, interest rates were reduced by 25 basis points to 5.25%. As a result, many banks have planned to reduce interest rates on home and auto loans, which will also encourage consumers to take new loans by reducing EMIs. Since the maximum period of the interest rates is linked to the base rates like MCLR (வங்கு நிக்கராட்டர் கருரம்), this will have a direct impact on the EMI.
பாண்டே பாரோடா has introduced a plan to reduce interest rates.
Due to reduction in interest rates by RBI Bank, its Benchmark Retail Loan Lending Rate (BRLLR) has reduced from 8.15% to 7.90%. This new rate will come into effect from 6 December 2020. The bank said that this will make it easier for the users to repay the loan. The 20 year home loan EMI of Rs 50 lakh will be around ₹41,511, the bank said, adding that ₹4.5 lakh will be saved in the total repayment amount.
Indian Bank has announced new rates
Bank of India has announced to reduce the Repo-Based Lending Rate (RBLR) by 25 basis points. The new rate will be 8.10%, which will come into effect from December 5. The bank said that this is a result of the interest rate reduction given by RBI. It also states that the 20 year home loan EMI for Rs 50 lakh will be around ₹42,134, saving ₹3 lakh on the total repayment amount.
Indian Bank Home Loan Rate
Bank of India has reduced its home lending rate to 7.95%. This EMI for a 20 year loan of Rs 50 lakh will be approximately ₹ 41,666. ₹4.1 lakh will be saved in the total repayment amount. This ratio reduction will benefit new and old borrowers.
Maharastra Bank’s Home Loan Savings
Maharastra Bank has reduced its home loan ratio from 7.35% to 7.10%. Moreover, expenses have also been reduced by 7.45%. In order to reduce the initial expenses, the bank has decided to cancel the expenditure amount. The 20 year home loan EMI for Rs 50 lakh will be approximately ₹ 39,066. ₹10.38 lakh will be saved in the total repayment amount, which is more than others.
Impact on EMI
There is a direct impact on EMI due to reduction in interest rates. Maharashtra Bank’s EMI will reduce by around ₹4,300 per month. EMIs from Indian Bank and Indian Bank will be reduced by around ₹1,700-₹1,900 per month. Indian Bank EMI will be around ₹1,250-less. As a result, the amount of alternate repayment to the beneficiaries will be reduced.
opportunity for new users
With the new rates, new customers will be encouraged to avail home and auto loans. Repaying long term loans at low interest rates will be beneficial to the borrowers. Some customers expect the EMI amount to be reduced, which will help them save on the total repayment amount.
consultants’ advice
Consultants have said that many banks will reduce interest rates in the future, which they say will help the consumers in the interim budget. He emphasizes that it is important to know about the bank’s new rates and EMI calculator before availing the loan or changing the loan terms.
bank and rate comparison
The new rates from major banks and their comparison for ₹50 lakh home loan EMI are given below:
- Maharakashtra Bank: 7.10%, EMI ₹39,066, Total Repayment Amount ₹43,75,754, Savings ₹10,38,124
- பாண்டே பாடோடா: 7.90%, EMI ₹41,511, Total Repayment Amount ₹49,62,727, Savings ₹4,51,151
- Indian Bank: 8.10%, EMI ₹42,134, Total Repayment Amount ₹51,12,092, Savings ₹3,01,787
- Indian Bank: 8.10%, EMI ₹42,134, Total Repayment Amount ₹51,12,092, Savings ₹3,01,787
This will benefit existing and new home loan buyers. EMI calculation users should be careful to take advantage of the new rates of the bank. It is best to borrow money once in a while to benefit from the low interest rates and cancellation of expenses.
Comments are closed.