Lower rates an opportunity to re-negotiate your home loan interest

Start by shifting to repo-linked rates, then seek the lowest rate being offered by lender

Introduced in May 2017, the scheme had ended on March 31, 2020
In current times, there is a strong case to move for two reasons: Home loan rates are at multi-decade lows and many would be feeling the pinch after the recent salary cuts and/or job losses.

The Covid-19 crisis has hurt borrowers in many ways. The only respite some may have got is the reduction in the rate of interest on home loans. Most lenders have cut rates after a nudge from the government and the Reserve Bank of India. Also, with the system flush with liquidity, lowering rates may be the only way to attract new borrowers. “If there is a difference of 75 basis points (bps) or more between the existing rate and the rate that our client is paying, based on calculations for shifting and other costs, we advise clients to move,” says Suresh Sadagopan, ...