Home loan seekers would do well to apply for loans as early as possible according to experts. This is because several banks are already increasing their rates of interest on home loans and many others are expected to follow suit over the next few months. IDBI Bank, for example, has already hiked the 1-year MCLR which now stands at 8.65%. Home loans will be more expensive for borrowers in this rising rate scenario and hence it is best to take a home loan right away without further delays. IDBI Bank has also hiked the 2 and 3-year MCLR rates which now stand at 8.7% and 8.8% respectively.
These rates have already been implemented from the 12th of May, 2018. MCLR has been hiked anywhere between 0.5-0.10 basis points. The MCLR is the base interest rate over which there is usually a spread. In case cheaper loans are obtained by banks, customers will also get lower interest rates and vice versa. Any MCLR increase automatically indicates a higher rate and more costs for your home loan. SBI (State Bank of India) has also hiked home loan rates to 8.65% from 8.35% for loans up to Rs. 30 lakh. 8.35% is the rate currently offered for loan amounts up to Rs. 30 lakh by Allahabad Bank.
Bank of India and Axis Bank are offering loans up to Rs. 30 lakh at 8.4% as per reports. Home loans between Rs. 30-75 lakh are coming at 8.35% from Dena Bank, Allahabad Bank and State Bank of India. The same rates are also applicable for loans exceeding Rs. 75 lakh. ICICI Bank offers rates between 8.75-8.95% for loans exceeding Rs. 75 lakh while this is 8.6% at HDFC Bank. With banks steadily increasing their home loan interest rates, this is definitely the best time to take your home loan.