Don’t just consider the interest rates when taking a home loan
Don’t just consider the interest rates when taking a home loan Interest rates on home loans have been falling ever since the lockdown, with the Reserve Bank of India (RBI) opting for deeper cuts in the policy rates to revive demand and economic activity that has taken a beating due to covid-19. In its last monetary policy meeting, the central bank reduced the repo and reverse rates by 40 basis points (bps) each to 4% and 3.35%, respectively. One bps is one-hundredth of a percentage point. New customers can now get home loans at much lower rates than what was available earlier. “The sub-7% is the lowest interest rate on floating home loan in the last 15 years,” said Gaurav Gupta, CEO, Myloancare, a marketplace for loans and credit cards. While interest rates are one of the key factors borrowers look at when choosing a lender, it’s important to consider some other aspects too. In a falling interest rate scenario, existing borrowers may feel stuck with higher rates but there may b...