“Owning a home is a keystone of wealth… both financial affluence and emotional security” – Suze Orman.
Being a homeowner has been a common desire for millions of people, but somewhere this longing takes a back seat in the world full of choices – i.e., spending on luxury and being adventurous. Living in unprecedented times of the COVID 19 pandemic, there has been a rising acceptance of the fact that – owning a home brings stability and security.
People across the world are seen grappling for jobs and security, and paying huge rents has been a burden as it’s futile and there is no asset building. In such circumstances owning a home not only takes the burden off but proves to be way more secured. In fact, the benefits of homeownership have proven to be matchless to other popular investment options.
For many, the decision to buy a home depends on whether one can get a home loan on time – and you have to believe there cannot be a better time than NOW to get your home loan.
Why Is Now The Right Time To Take A Home Loan?
According to an ANAROCK Consumer Sentiment Survey to gauge homebuyers’ preferences during the pandemic, a majority of participants (48%) consider real estate as the best asset class for investment in the current situation, largely due to lower risks attached. In addition, a public poll conducted by a finance and digital expert on Twitter revealed 76% of the respondents picking the safety of a home over other asset classes. If statistics are to be believed, it is a testament to the growing interest of owning a home in the country. And, with interest rates on a downward trajectory, this indeed is the best time to avail of a home loan.
Home Loan Rates At A 15-Year Low
Last year the Reserve Bank of India (RBI) cut down the repo rate by 40 basis points (100bps=1 percent), bringing down the repo rate to an all-time low of 4 percent. Repo rate is the rate at which the RBI lends funds to commercial banks. The RBI took this decision by advancing the monetary policy meeting from the first week of June to May 22, 2020. The RBI has slashed the repo rate by 115 bps ever since the lockdown began. This move by the RBI has been great news for all those planning to take a home loan for purchasing their dream home. This is because interest rates are now headed downwards reducing EMIs and making homeownership much more affordable.
Now, let’s highlight the perks of taking a home loan now:
- Owning a home builds a high sense of comfort for yourself and your family.
- With interest rates at an all-time low, you can save a considerable amount of money and look at a bigger / spacious property without any increase in EMI outflow.
- Use the saving resulted from reduced EMI to avail of a top-up loan, which will also come at a lower interest rate.
- You can furnish your dream house and make the investment complete.
- There is more for buyers looking at property for investment purposes, think of the attractive rental incomes from your property.
Not ending at that, several reputed developers are polishing the available benefits with additional offers and value additions, making the purchase now is a total win-win for the consumers.
A Look At The Home-Loan Interest Rates
The offer does look tempting, but it may be quite confusing for a home buyer to select the best financial institution to borrow the home loan from. To make things easier for borrowers, we list here the few of the best banks to get a home loan from in 2021.
- SBI home loan interest rate
| Rate of interest on home loans | Best rate* | Highest rate* |
| For salaried individuals | 6.7% | 7.05% |
| For self-employed individuals | 7% | 7.40% |
*Rate applicability from May 1, 2021
Longest tenure: 30 years
Processing fees: 0.40% of the loan amount, subject to a minimum of Rs 10,000 and a maximum of Rs 30,000 with GST. For projects where the bank has a tie-up with the builder, the rate will be 0.40% subject to a maximum of Rs 10,000 plus taxes.
- HDFC home loan interest rate
| Rate of interest on home loans | Best rate* | Highest rate* |
| For salaried individuals | 6.75% | 7.40% |
| For self-employed individuals | 6.75% | 7.85% |
*Rate applicability valid from March 4, 2021
Maximum tenure: 30 years
Processing fees: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.
- ICICI Bank home loan interest rate
| Rate of interest on home loans | Best rate* | Highest rate* |
| For salaried individuals | 6.75% | 7.95% |
| For self-employed individuals | 6.95% | 8.05% |
*Rate applicability from March 5, 2021
Maximum tenure: 30 years
Processing fees: 0.50% of the home loan amount.
- LIC Housing Finance home loan interest rate
| Rate of interest on home loans | Best rate | Highest rate |
| For salaried individuals | 6.90% | 7.80% |
| For self-employed individuals | 7% | 7.90% |
Maximum tenure: 30 years
Processing fees: 0.25% of the loan amount, with the upper limit, capped at Rs. 10,000.
- Union Bank home loan interest rate
| Rate of interest on home loans | Best rate | Highest rate |
| For salaried individuals | 6.70% | 7.15% |
| For self-employed individuals | 6.90% | 7.35% |
Maximum tenure: 30 years
Processing fees: 0.50% of the total loan amount with the upper limit capped at Rs 15,000.
- Axis home loan interest rate
| Rate of interest on home loans | Best rate | Highest rate |
| For salaried individuals | 6.90% | 8.40% |
| For self-employed individuals | 7% | 8.55% |
Maximum tenure: 30 years
Processing fees: Up to 1% of the loan amount, with the minimum amount capped at Rs 10,000.
While evaluating the loan offers and options, the lowest interest rates matter but the overall effectiveness of the bargain also plays a role in grabbing a good deal. So don’t hesitate to ask and bargain wherever possible.
Final Words
For most aspiring home-buyers, it is a once-in-a-lifetime opportunity. In fact, this could be the only opportunity of getting home loans at such low rates. Looking at the current market scene, it is largely a buyer’s market. So, invest now and realize your dream of owning your very dream house.