Even though the Reserve Bank (RBI) has kept the Repo Rate unchanged at 6.25%, the State Bank of India (SBI), on April 3, 2017, cut its lending rate by 0.15% to 9.10%.
This decision, which will come into effect immediately, will lower EMIs for borrowers - making it even more easier to invest in a first and second residence.
- The bank has also made other announcements that'll further help home buyers. They are:
- Base rate has been reduced by 0.15%, from 9.40% to 9.25%
Benchmark Prime Lending Rate (BPLR) has also been cut by similar percentage points – from 14% to 13.85%
So, what does mean for the home buyers and how exactly will it help them?
With this move, people – new and also existing borrowers - who have taken up loans for housing, cars, etc. can negotiate with the banks to either lower the EMI or reduce the tenure of the loan.
In November last year, SBI reduced home loan rates to the lowest in 6 years. And now, with this move, home-buying has become even more pocket-friendly.