Should I take home loan right now or wait for interest rate reduction?

POSTED BY Janak ON August 4, 2012 7:34 am COMMENTS (2)

Recent report suggest that there will be reduction in interest rate by banks.
http://profit.ndtv.com/News/Article/sbi-cuts-home-loans-by-0-25-auto-loans-by-0-50–308696
SBI has already announced it and many others might follow.

In my case, home loan is sanctioned and I am yet to sign documents. Should I go ahead and take home loan at current rate? OR.. should I wait for 1-2 weeks for interest rate to go down further?

Any idea how much reduction it will be?
Will LIC and HDFC also follow similar trend?

2 replies on this article “Should I take home loan right now or wait for interest rate reduction?”

  1. BRSINGH says:

    I think ur bank should have sanctioned at a particular rate. So any reduction to happen in future will happen. You can take the loan now itself as applying loan is a lengthy process. Just wait for the rate to reduce and after that only take the disubarsal from loan so that you dont have to pay less interest now. But you never know, the rate may increase in future also. So if you really need loan then go for it.

    LIC & SBI follow the rate cuts quickly. Private banks are basically cheaters when they need to reduce interest rate.

    1. Janak says:

      Yes, they have already sanctioned loan at 11% for 3-year fixed rate and then floating.

      I am wondering if its advisable to wait for one more month when interest rate reduces further or just start disbursement.

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