Home loan Rate cut by Indian banks?

After HDFC bank decides to go for a rate cut in their HDFC bank home loan rates for the new customers instead of the existing ones, it was once in last 5 years that a bank in India has actually reduced the floating home loan rates for the first time ever since 2003.

After RBI declared that it is not going for a rate cut and clearly told the banks that the market is open for them to battle it out, it was HDFC bank that took the initiative and cut the home loan rates. However, now other banks are expected to follow suit.

As per the news from CNBC webcast, Bank of Baroda and bank of Maharashtra are planning to go for a home loan rate cut in the floating home loan segment. Following the move by HDFC, there have been many speculations about the rate cuts from other banks – especially the private banks.
Though ICICI bank has clearly denied the possibility of a home loan rate cut in any form, Bank of Baroda (BoB) and bank of Maharashtra (BoM) are said to be in the deciding phase about whether to go for a rate cut or not. There are also rumors that even Union Bank might come up with a rate cut.

If that happens, then it will be a big respite for the floating rate home loan borrowers who have witnessed only an upward trend for the home loan rates in the last few years. Though the news is not confirmed, still in rumour stage, let’s hope that thing work in favour of the common man.

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