If you are expecting the EMI of your home loan and car loan to be reduced, then you will have to wait a long time for now. Reserve Bank of India (RBI) Governor Shashikant Das has clarified that in view of the high inflation rate, RBI will not cut interest rates at the moment.
No sign of reduction in interest rates in view of inflation.
Banks decide to reduce interest rates on home loans, car loans, auto loans and education loans only after RBI cuts interest rates. Governor Shaktikanta Das said that inflation is expected to increase in October, and reduction in interest rates amid increased inflation cannot be taken as a risk. This means that at present there will be no reduction in EMI on home loans and auto loans.
There has been no reduction in interest rates for the last 2 years
RBI has not reduced interest rates for the last 2 years. Although some changes were expected during the monetary policy meeting held in October, the RBI governor has already made it clear that the interest rate may remain unchanged for the time being.
Interest rate cuts abroad
It is also worth mentioning here that the Canadian Central Bank has reduced interest rates twice since July, while the European Central Bank has also cut interest rates. The US Federal Reserve has also expressed the possibility of cutting interest rates in its next meeting. However, despite India being one of the largest economies in the world, the environment for cutting interest rates is not being created at the moment due to rising inflation.
Here are the home, car, and education loan interest rates offered by major banks in India as of November 2024. These rates may vary depending on the bank, loan amount, tenure, and customer profile.
Home loan interest rates….
• State Bank of India (SBI): 8.50% to 10.20%
• Bank of Baroda: 8.40% to 10.90%
• Punjab National Bank (PNB): 8.40% to 10.15%
• ICICI Bank: 8.85% to 10.50%
• HDFC Ltd: 8.95% to 10.65%Car Loan Interest Rates
• SBI: 8.70% to 10.50%
• HDFC Bank: 8.85% to 12.75
% • Axis Bank: 8.90% to 13.00%
• ICICI Bank: 8.85% to 12.50%
• Bank of Baroda: 8.50% to 10.70%Education Loan Interest Rates
• SBI: 9.15% to 11.50% (different rates for domestic and foreign studies)
• PNB: 8.85% to 11.85%
• Bank of Baroda: 8.75% to 10.50%
• ICICI Bank: 10.25% to 12.00%
• Axis Bank: 10.75% to 13.00%These interest rates may be based on credit score, loan tenure, and banks’ special terms & conditions.