About Home Loan Rates in India
Most home loans in India are now linked to the RBI repo rate (External Benchmark Lending Rate or EBLR). When RBI changes the repo rate, your home loan EMI changes accordingly. The actual rate you get depends on your credit score, loan amount, and relationship with the bank.
A difference of just 0.25% in home loan rate can save you lakhs over the loan tenure. For a Rs 50 lakh loan over 20 years, each 0.25% reduction saves approximately Rs 2.5 lakh in total interest. Always negotiate with the bank for a lower spread.