Home loan: Your CIBIL score should be more than 800 for the home loan at the lowest rate, there has been a decline in the sales of houses in the first quarter of FY 2022. This has also seen a reduction in home loan disbursals.
Home loan: There has been a decline in the sale of houses in the first quarter of FY 2022. This has also seen a reduction in home loan disbursals. But if you are thinking of buying a house now, then housing finance companies including many banks have reduced the rates of home loan. The risk in the home loan portfolio is lower than in the retail loan portfolio of banks. Therefore, home loans are being provided by banks at very attractive rates.
Housing finance companies and bank loans
Most of the housing finance companies and banks are providing home loans in the starting range of 6.65 percent to 6.75 percent. However, for the home loan at the lowest rate, your CIBIL score should be more than 800, and for the salaried employee, the banks are providing you the loan at low rates if you take the insurance coverage along with the loan having low loan to value.
Home loan rates continue to fall
LIC Housing Finance has reduced the initial home loan rate from 6.9% to 6.66%. After the increase in home loan rates in April, SBI’s home loan rates have started from 6.7%. Similarly, Kotak Mahindra Bank and Punjab and Sind Bank have home loan starting from 6.65%. State-run Bank of Baroda and ICICI Bank home loan rates start at 6.75%.
Slightly less risk in home loan
In the retail loan portfolio, the risk in a home loan is slightly lower. If you have a good CIBIL score then customers like you are offered home loans at the lowest rates. Along with the home loan, the emphasis of banks and HFCs is also on selling insurance. Efforts are being made to speed up home loan disbursal and boost real estate with lower rates.
