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Home Loan Rates Drop After RBI Cut — Big Relief for Existing Borrowers!

StartupTalky

StartupTalky · 1m ago

Home Loan Rates Drop After RBI Cut — Big Relief for Existing Borrowers!

In response to the RBI's 50 basis-point repo rate cut, major public sector banks, including Bank of Baroda and Punjab National Bank, have reduced their lending rates, providing relief to existing borrowers of floating-rate loans. However, new borrowers might not benefit as significantly due to banks adjusting their spreads. As banks aim to maintain profitability, the fixed deposit returns are likely to decrease, balancing credit availability and economic growth against competition within the Indian banking sector.

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Related News

RBI Policy Impact on Home Loans: EMIs to stay unchanged as central bank holds repo rate at 6.5%

Money Control

Money Control · 1y ago

RBI Policy Impact on Home Loans: EMIs to stay unchanged as central bank holds repo rate at 6.5%

The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5 percent for the sixth consecutive time. This means that home loan interest rates will remain stable for now. Home loan rates currently range from 8.30 percent to 8.75 percent, making it a favorable market for new borrowers. However, existing borrowers may continue to face higher interest rates for a few more months. To mitigate this, borrowers have the options of refinancing their loans to a lower rate, making part-prepayments, or switching lenders to take advantage of lower interest rates.

Public vs private banks: Who offers the cheapest home loans now after RBI's 50 bps repo rate cut? - The Economic Times

Economic Times

Economic Times · 1m ago

Public vs private banks: Who offers the cheapest home loans now after RBI's 50 bps repo rate cut? - The Economic Times

The Reserve Bank of India's latest 50 basis point repo rate cut leads to reduced home loan interest rates, potentially lowering EMIs or shortening loan tenures for borrowers. Public and private banks offer varied rates, requiring borrowers to compare fees, processing speeds, and other terms. With differences in costs and approval times between public and private banks, borrowers are encouraged to assess all aspects before committing to revised home loan agreements.

RBI’s rate cut may not bring immediate EMI relief for all borrowers

Livemint

Livemint · 1m ago

RBI’s rate cut may not bring immediate EMI relief for all borrowers

The Reserve Bank of India (RBI) reduced the repo rate by 50 basis points, hoping to provide EMI relief. However, not all borrowers will see immediate benefits. Loans tied to banks’ internal benchmarks or with fixed interest rates may not see an immediate reduction. Non-banking financial companies (NBFCs) use internal models to decide on passing the benefit of a repo cut. The impact depends on various factors, including loan type and lender.

Bank of Baroda reduces home loan interest rates to 7.45%; offers nil processing fee - The Economic Times

Economic Times

Economic Times · 24d ago

Bank of Baroda reduces home loan interest rates to 7.45%; offers nil processing fee - The Economic Times

Bank of Baroda has reduced its home loan interest rates to 7.45% per annum and waived the processing fee, following a repo rate cut by the RBI. This makes home loans more affordable, reflecting a series of monetary easing actions by the RBI. The reduction follows an earlier cut in June. Concurrently, Punjab National Bank increased its Repo Linked Lending Rate, although adjustments in Bank Spread balanced the overall customer impact.

LIC Housing Finance reduces interest rate in line with recent RBI repo rate cut

Economic Times

Economic Times · 1m ago

LIC Housing Finance reduces interest rate in line with recent RBI repo rate cut

LIC Housing Finance has reduced its interest rate on new home loans by 50 basis points, aligning with the recent RBI repo rate cut. This change makes new home loan interest rates start at 7.50%, effective June 19, 2025. The reduction aims to benefit new home loan customers, enhance affordability, and boost housing demand, particularly in affordable and mid-income segments. The move coincides with LIC Housing Finance's 36th Foundation Day and supports RBI's economic stimulus efforts.

BASIC Home Loan snags $10.6 mn in Series B round

VCCircle

VCCircle · 10m ago

BASIC Home Loan snags $10.6 mn in Series B round

Indian fintech platform BASIC Home Loan has raised $10.6m in a series B funding round led by Bertelsmann India Investments. The round also saw participation from CE-Ventures, Ashish Kacholia, and other existing investors. The Gurugram-based startup intends to use the funding to expand its market presence, enhance its technological capabilities, and build its own lending book. BASIC Home Loan, which was incorporated in 2020, aims to simplify the home loan process for borrowers in tier-II and III cities, using its proprietary technology stack to match lenders and borrowers.

How BASIC Home Loan Is Revolutionising Affordable Housing Finance By Helping 22 Lakh+ Customers

Inc42 · 1y ago

How BASIC Home Loan Is Revolutionising Affordable Housing Finance By Helping 22 Lakh+ Customers

BASIC Home Loan is a fintech startup that aims to make home loans more accessible and affordable in the affordable housing sector. They have developed a proprietary technology platform that matches lenders and borrowers quickly and accurately. The platform also provides training to a network of direct-selling agents, combining digital efficiencies with in-person assistance. This helps streamline the home loan application process and make it more efficient for borrowers in need of affordable housing.

Gold loan risks: RBI exposes irregularities, borrowers beware

Money Control

Money Control · 9m ago

Gold loan risks: RBI exposes irregularities, borrowers beware

- The Reserve Bank of India (RBI) has identified irregularities in granting gold loans, including lack of transparency during auction on default and inadequate due diligence. - The gold loan segment has experienced significant growth, with public sector banks accounting for a majority of the loans in recent years. - Borrowers should conduct research and verification, understand loan terms, and be aware of red flags when availing gold loans. - Essential precautions to take include studying loan offers, comparing interest rates and charges, and being cautious of unsolicited offers with hidden terms. - Lenders have been given three months to review their policies and practices related to gold loans and take corrective measures. Non-compliance may result in supervisory action from the RBI.

Impact of India's large rate cut may be limited, says RBI MPC member Saugata Bhattacharya

Economic Times

Economic Times · 1m ago

Impact of India's large rate cut may be limited, says RBI MPC member Saugata Bhattacharya

The immediate impact of a 25 basis-point rate cut by the Reserve Bank of India might be limited, according to MPC member Saugata Bhattacharya. Despite a larger 50-bp cut earlier to boost growth, Bhattacharya suggests a focus on MSMEs and home loan borrowers will be crucial. Inflation is expected to meet the RBI's 4% target, supporting steady economic growth. Bhattacharya advocates a gradual approach to rate adjustments amidst global uncertainties, emphasizing the importance of effective policy transmission.

Surge in tiny personal loans sparks Indian central bank concern

Reuters · 1y ago

Surge in tiny personal loans sparks Indian central bank concern

India's central bank has expressed concerns over the surge in borrowing by low-income consumers for small personal loans. The Reserve Bank of India (RBI) seeks to tighten controls and implement stricter measures to prevent defaults. Delinquency rates for loans under INR 50,000 are significantly higher than the overall retail loan ratio, leading to worries about potential risks for borrowers. The rise in small loans has outpaced overall bank credit growth, prompting the RBI to monitor certain categories of personal loans. Non-bank financial companies are the largest lenders to this segment, with the possibility of exposure for banks as well.

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