Did you know that it is the best time to invest in property using the best home loan interest rate?
‘April 5th, 2024’ was when the Reserve Bank of India (RBI) held its Monetary Policy Committee (MPC) meeting. During this, the RBI decided that the repo rate would remain the same at 6.5%. A decision that has been taken for the seventh time by the RBI since February 2023.
The major objective of India’s Central Bank to keep the repo rate unchanged is controlling inflation in the economy. Similar to what the US Fed decided to do in March.
More importantly, recently the revenue department of Maharashtra decided to avoid altering the Ready-Reckoner Rates (RRR) for the new fiscal year. It means that the stamp duty on property within the state will remain low since R has a direct relationship with it.
As a result, an ideal environment for people to buy homes within the country has formed.
Please read this ‘Loan Bazaar’ article to learn more about the factors that make home buying a profitable enterprise in the country at the moment.
Why has the RBI decided not to change the repo rate?
It was the RBI Monetary Policy Committee that decided not to alter the current repo rate (RR) of 6.5%. A significant majority prevailed during this meeting with a ratio of 5:1 voting in favor of keeping RR as it stands.
The primary motivation for the RBI doing so is to bring into control inflation in the Indian economy. The current inflation rate is 4.5%. Therefore, India’s Central Bank aims to bring it down to the target of 4% given by the central government of India.
The good news is that over nine months, there was a steady decline in inflation in the country. However, due to the recent significant fluctuations in food prices in India’s economy, the disinflation process considerably slowed down. Therefore, the need of the hour was to accelerate the inflation rate and get it quickly down to the 4% target.
A major reason why the RBI had to use the corrective measure of not changing the RR presently standing at 6.5%.What impact does an unchanged repo rate have on the homebuying industry in India?
The RBI deciding to keep the repo rate unchanged at 6.5% means that the interest rates on home loans will also not be affected at the moment.
A low-interest rate on borrowing to buy a ‘Dream Home’ will only stimulate interest in more individuals intending to purchase a home. Thus, during this period there is a clear possibility that there could be a rise in property sales in the real estate sector.
So, this period with the repo rate unaltered is the ideal time if you are seeking to buy a home for yourself using a home loan. To make your desire to be the owner of your house come true, there are several public/private banks, NBFCs, or fintech brands such as ‘Loan Bazaar’ available.
How do unchanged Ready-Reckoner Rates (RRR) in Maharashtra state affect home buying?
Recently, the state government of Maharashtra decided not to change the Ready-Reckoner Rates (RRR) on property for the new financial year. Now, the value of R has a direct impact on stamp duty.
It only means that the stamp duty on property is on the lower side for the new fiscal year. Therefore, the prices of property too will be low in Maharashtra. Making this period the perfect time for people to get their ‘Dream Home’ at the best home loan interest rate offer.
To understand more about how you can secure a home loan at the lowest interest rate available, please visit ‘Loan Bazaar’ by clicking our website https://loanbazaar.net.in/
