News Image

Opportunities don’t come knocking on your door very often. However, when they do, you’ve got to be ready to optimise it to the fullest. The aftermath of the Covid-19 pandemic situation has established the fact that owning an apartment is way better than dealing with the uncertainties of living in rented accommodation. People are also realising the importance of having real estate, as an asset class in their investment basket, as a more reliable option offering steady returns compared to the highly volatile stock market that comes with heightened risks.

 

Driving this trend will be the Reserve Bank of India’s (RBI) monetary policy decision earlier in March 2020 to slash repo rates by 0.75 basis points (bps). This move by the Indian central bank has made home loans significantly attractive presenting potential home buyers with an opportunity that cannot be missed. The steep cut has brought interest rates on home loans by public and private sector banks to their lowest, between 7.20% and 8.05%, in over a decade.

 

It’s definitely good news for those chasing a life goal to own a house, more so for those waiting for the right time to take the plunge. If you’re among them, then wait no further.

 

That’s because home loans at prevalent interest rates allow for considerable savings while creating an asset for end-use or investment purpose. Furthermore, the borrower gets to use the savings resulting from a reduced equated monthly instalment (EMI) to avail a top-up loan, also available at lower interest rates.

 

The additional funds can be used for undertaking interiors related work for the apartment being purchased. Alternatively, a lower interest rate also gives borrowers an option to raise a higher amount of loan. This helps widen the choice in terms of a bigger home with better amenities and lifestyle facilities in a prominent neighbourhood.