Make home while the interest rates shine

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Very few would believe that when India became independent, petrol used to cost 27 paise a litre, or that a 10 gram gold coin was below Rs 100. Similarly, none would have believed at the turn of this century that home loans would slide to below 7% two decades later. The consumer of home loans never had it so easy. If you are still living in a rented accommodation, this might be the proper time to buy a house or an apartment.

Interest rates of home loans are at the lowest lows in the country now and a number of banks and NBFCs are offering rates that are much lower than 7%. The titans of the industry like State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, LIC Housing Finance, Bank of Baroda, Punjab National Bank, offer rates that start considerably lower than 7%. In view of the pandemic-lashed depressed sentiment, LIC Housing Finance is offering 6.66% rates till the end of August.

Prominent real estate developers are also sitting on a large number of unsold apartments. Considering both the supply scenario and finance offers taken together this is just about the best time to go for a dwelling unit.

LIC Housing Finance, a major player in this segment, is offering a rate of 6.66% till August 31, considering the depressed sentiment. This is the time for potential buyers to take advantage of the interest rates before they creep up again.

Moreover, the repayment period can be as high as 30 years for many lenders. The additional sweetner is the tax deductibility on the repayment every year till the entire loan is extinguished. A house also shields one from rising rents and whims and fancies of the owner while EMIs are fixed.