AN OFFER YOU CAN’T REFUSE

There are few things more pleasing to a borrower than low interest rates. This is especially true for those who have taken home loans—for a majority of such borrowers, this is the largest liability they will take on in their lives, and any fall in interest rates brings substantial savings. Owing to the pandemic and subsequent economic restrictions, the interest rate in India has touched a historic low. The Reserve Bank of India’s (RBI’s) repo rate—the benchmark used to fix other interest rates—touched 4 per cent in May 2020, the lowest level since 2001. This has led to home loan rates falling as well, with the lowest rates on offer at around 6.7 per cent.

Besides helping in creating an appreciating asset at a lower cost, home loans also offer