Good news for homebuyers! Home loan interest rates to remain at all time low

The real estate sector has been hardest hit by the second wave of the COVID-19 pandemic and the home loan interest rate will continue to remain low as the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has kept the key benchmark rates unchanged on June 4, i.e. repo rate at 4% and reverse repo rate at 3.35%.

The low home loan interest rate is definitely going to benefit homebuyers in the near future. Picture this, Pradeep Aggarwal, chairman of ASSOCHAM told News 18 that, “ The low home loan interest rate has been a crucial demand of real estate, and the RBI has helped the sector by maintaining the status quo.”

The COVID pandemic has adversely affected the real estate sector in the last two months and for economic recovery, the RBI has maintained the repo rate unchanged at 4% and reverse repo rate at 3.35%. Moreover, the Central bank has also decided to maintain an ‘accommodative stance’ as long as necessary to mitigate the impact of the COVID-19 pandemic.

“It is the sixth time consequently that RBI has kept the benchmark rates unchanged. While it reflects a response to the COVID-19 pandemic challenges, it is advantageous for home loan borrowers," said Niranjan Hiranandani, national president, NAREDCO. “The floating retail loan rates continue to be at the lowest level over the past two decades and this is likely to continue for some more time," NAREDCO President added.