Home loan interest rates hiked

Reserve bank of India’s monetary policy committee which met on 6th June, 2018 framed its bi-monthly policy. It had hiked the repo rate by 25 basis points which stands at 6.25%. The reverse repo rate has also risen to 6%. This will lead to rise in interest rates on loans given by commercial banks and hence the borrowers will be impacted badly. There could also be a rise in marginal based lending rate (MCLR) soon. The existing borrowers can compare the different lending rates by the banks (lenders) and hence can transfer their home loans on calculation of their savings. The new borrowers shouldn’t wait for a rate cut because the central bank will increase the rates in the coming future. They can borrow under Pradhan Mantri Awas Yojana(PMAY). It will offer an interest subsidy based on the income level of a person.

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Source- https://economictimes.indiatimes.com/wealth/personal-finance-news/rbi-hikes-repo-rate-by-0-25-home-loans-set-to-become-costly/articleshow/64464121.cms