Switch if you can find 50 bps cheaper home loan; lock into current FD rates

Some lenders have lowered their rates over the past couple of months by reducing their spreads

Your loan rate could also depend on the home loan product you choose

While the weighted average interest rate on existing loans has risen for 14 months in a row, fresh loan rates have been volatile

Sanjay Kumar Singh

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The Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5 per cent on August 10, choosing to look through the recent spike in consumer price index (CPI)-based inflation. However, it revised its CPI inflation projection for 2023-24 to 5.4 per cent, 30 basis points higher than the earlier figure. Moreover, it provided an estimate of 5.2 per cent for the first quarter of 2024-25, indicating that CPI inflation is likely to remain above the 4 per cent target rate for a considerable period. Experts say interest rates will remain on hold for a prolonged period and the first rate cut may only materialise towards the middle or the second half of FY25.

Home loan borrowers: Switch or

First Published: Aug 11 2023 | 7:35 PM IST

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