Banks have decided to reduce the home loan interest rates after the monetary policy held on Aug 5, 2014. RBI had announced that the Repo and Reverse Repo rates would remain same with slight reduction in SLR. This has improved the liquidity in the banking system.
Following this announcement, SBI, HDFC and PNB have decided to slash their home loan interest rates. SBI has reduced by 0.2% for female borrowers and 0.1% for male borrowers for all loans above Rs. 75 lakh. HDFC has brought a uniform rate of 10.15% for loans below as well as above Rs. 75 lakh. PNB now offers a rate of 10.25% for home loans up to Rs. 2 crore.
Indian bank has stated that it will take a call on this in the upcoming review meet. Few other banks could follow this in the coming days. All in all, this is welcome news for the borrowers.