After Reserve Bank of India had taken its decision, the country’s two top most banks, SBI and ICICI declared that the home loans would be cheaper. S.B.I and ICICI lowered its Home Loan rate by 0.10 percent.
The current Home Loan rate of S.B.I. would now be 9.45 percent. The home loan rate for women would be 9.40 percent. Earlier, S.B.I. Used to take an interest rate of 9.55 percent from Men and 9.5 annual interest rate from women. The new rates have been applicable from April 1, 2016. The private sector bank ICICI would give the annual interest rate of 9.40 on loans up to 25 lakhs. Moreover, in the coming days, other banks might also declare decrease in their annual interest rates.
Car loan also gets cheaper. According to SBI official website, the annual interest rate of Car loans is now 9.80. Similarly, on education loan up to seven lakhs, the annual interest rate would be 10.90 percent. The annual interest rate on education loan was now up to 11.20. The new annual interest rate for Skill loan would be 13.10 percent. The banks have removed processing fee from various investment products and have given discounts on various others.
The decrease in interest rate in various government and private banks is due to the announcement of Reserve Bank of India. The chief of Reserve Bank of India, Raghuram Rajan declared the decrease in repo rate by 0.25 percent due to which banks might reduce the annual interest rate on home and car loans.
The central government also asked R.B.I. And Government and private banks to lower their annual interest rate. The financial experts were very sure that the banks might reduce the interest rates and loans like Home loans, car loans, education loans, etc. might get cheaper.
It’s happy news for all those who were planning to buy a house or car. Ordinary people are very satisfied with the decision of more affordable bank loans.