Home loans set to get cheaper as RBI cuts provisions, risk weights

To spur war among lenders to grab existing loans

Home loans are about to become cheaper with the Reserve Bank of India (RBI) relaxing provisions for individual housing loans. It will not only bring down housing loan rates, but also intensify competition among lenders to acquire existing loans from each other.

State Bank of India Chairman Arundhati Bhattacharya said, “The large cut in inflation projection by the RBI in the monetary policy is in consonance with ground realities and is likely to create room for rate cuts in the latter half of the year. The decision to reduce the risk weights for home loans over the Rs 30-lakh category