Cheers for borrowers as lending rates fall at last!

Q: Right after the RBI's decision to keep the repo rates unaffected, 3 ace Indian Banks, which include the State Bank of India, ICICI and HDFC, leaders in the private sector, have cut their base lending rates.

Roshni Pawal, Mumbai

9th April 2015

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Replies (4)

Earlier, this year, there is a significantly rate cuts (twice) by the bank effect the realty market as sales in Pune have settled down over the last 3 qtrs, and the most strength being seen mainly in the budget homes segment. This clearly indicates that the market is manipulated towards budget homes, and reduction in interest rates is a critical factor in affordability. I expect to have sales momentum to start lifting clearly, and also believe that more rate cuts will follow on the heels of the stronger economic signals being felt in the country.

Rajiv Bajaj, Pune

10th April 2015

Comment

Now, the borrowers can enjoy the cutting rate according the their lending banks. In case of SBI's, its new lending rate will come into effect from 10th April, HDFC Banks from 13th April while ICICI Bank will shore up with its new rate in one end, from 10th April for its existing consumers, on the other end, the new borrowers can enjoy this rate from 1st July.

Ashish Bhoite, Mumbai

9th April 2015

Comment

@Shrikant,
There is always a delay between the directives given by the RBI with regards to lowering lending rates, and banks submission with these directives.

Anirudh Patel, Mumbai

9th April 2015

Comment

But this time it is really inspiring that these banks have taken the motivation, leaving other banks with little option but to follow suit.

The housing loan section is an highly competitive one, and it is significant that home loan disbursements in the Pune region had decreased significantly in recent times.

Shrikant Kejriwal, Mumbai

9th April 2015

Hi Roshini,
With these rate cuts by the banks, the current as well as new consumers are expected to benefit a reasonable percentage. Though with this enforcement by the banks, home loans are also expected to see a reduced interest rate along with policy update, which looks to definitely make the real estate sector experience certain gain.

Anirudh Patel, Mumbai

9th April 2015

Comment

Really a good news for the for the consumers. While SBI and HDFC, has approached to cut their lending rates by 15 basis points each, to 9.85%, the other one, ICICI Bank, plans to cut its rate by 25 basis point to 9.75%. There are possibilities that other banks might also join the group soon.

Shrikant Kejriwal, Mumbai

9th April 2015