The Reserve Bank of India (RBI) recently reduced the repo rate by 25 basis points to 6.25%, and in response, several government-owned banks have cut their home loan interest rates. Specifically, State Bank of India (SBI), Punjab National Bank (PNB), Union Bank of India (UBI), and Bank of Maharashtra (BoM) have reduced their home loan interest rates.
Bank of Maharashtra is offering repo-rate linked home loans starting at 8.10%, with the highest interest rate being 10.65% for non-salaried borrowers and 10.15% for salaried borrowers. The bank has also waived processing fees on home and car loans. Union Bank of India is offering floating-rate home loans starting at 8.1% with a maximum rate of 10.50%. Punjab National Bank has revised its interest rates for home loans starting at 8.15% per annum. SBI, the country’s largest lender, has cut its lending rate for home loans by 25 basis points to 8.25%, with the external benchmark lending rate declining by 25 bps to 8.9%.
These rate cuts by government-owned banks are a significant development, as it indicates that they are passing on the benefits of the RBI’s repo rate cut to their customers. This will lead to reduced interest payments for homeowners, making it more affordable for them to own a home. The move is also likely to boost the real estate sector, as more people may be encouraged to buy or invest in property. Overall, this is a positive step towards stimulating economic growth and making credit more accessible to individuals and small businesses.