Home Loan: What is now a ‘smart’ opportunity to buy a house? How long will you get a cheap loan – Home Loan Interest Rate Cut Best Time to Buy House 2025

Home loan: Is this the best opportunity to buy a house? This question has become very important in the current situation. Because the Reserve Bank of India (RBI) has started the process of cuts in the policy interest rate after a gap of two years. Many government banks are giving home loans at 8% or less interest rates.

Let us understand from experts whether the decision to buy a house will be correct at this time, is there a possibility of further cuts in interest rates. At the same time, we will also know which banks are currently giving the cheapest home loans and how much EMI will be formed on taking loans at the cheapest rate.

After 2 years, the process of reducing repo rate has started

RBI increased the repo rate from May 2022 to February 2023 after the corona epidemic. It increased from 4% to 6.50% i.e. total increased by 2.5%. After that the repo rate remained as it was for 2 years. Then there was a change in February 2025, when the central bank cut the policy rates by 0.25%. After this, the repo rate in April RBI MPC was also reduced and now it has come to 6%.

After the repo rate decreased, many public sector banks gave the benefit to the general public and the interest rate of home loan came down to 8% or below. It has emerged as a good opportunity for many home buyers to take a home loan, who were still hesitant due to higher interest rates.

Can a home loan be cheaper right now?

When the RBI did not cut the repo rate for nearly two years between 2023 and 2025, its biggest argument was that its entire focus is on controlling inflation. However, inflation has been continuously decreasing for the last few months.

Talking about April 2025, the retail inflation based on the Consumer Price Index (CPI) went down to 3.16%. This is the lowest level of the last 6 years. In such a situation, the RBI’s June MPC has also increased the hope of cutting the repo rate. RBI Governor Sanjay Malhotra also indicated that if inflation remains under control, the process of cuts will continue.

Repo rate can be cut up to 1.25%

According to SBI Research, ‘It is a’ Goldenlox period ‘due to low inflation and slow growth in the country i.e. the best time to reduce interest rates. The RBI can cut the repo rate by about 125 basis points (1.25%) by the end of the current financial year.

It can start in June and August 2025 with a total of 75 basis points (0.75%) in the repo rate. If this happens, by the end of the current financial year, those with more than 800 credit scores can also get a home loan at the rate of 6.6%.

Would it be right to wait for home loan to be cheaper?

Atul Manga, co-founder and CEO of basic home loan, says that current geopolitical stress creates some concern about economic stability. However, we should differentiate between a short time uncertainty and long -term investment possibilities. We are in a very extent stable economic environment. Of course, home loan interest rates are above the historic low of 2020-21, but most are stable.

Atul Manga believes that buying a house can be a good decision at this time. He says, ‘Property prices are slowly going up in many parts of the country. In such a situation, waiting for the rates to come down can be like losing many good offers. If your income is stable and you are financially ready, it can be a good time to buy a house. ‘

This is the right time to invest in real estate?

According to Manoj Aggarwal, Chairman and Managing Director of Great Value Realty, it can be quite good for people thinking of buying a house in 2025. He says that due to recent cuts in repo rate, many government banks are now giving home loans at 8% or less interest rates. This has reduced EMI and buying a house has become more accessible.

Aggarwal says, ‘The current interest rates are attractive. If you are financially ready, this may be the right time to buy a house. Many developers are offering attractive offers and discounts. This can make it even more beneficial to buy a house. However, you should consider that your income, credit score and long -term money related responsibility matches the decision to buy a house.

Homemade demand in micro-markets

Ashok Kapoor, chairman of Krishna Group and Chrisumi Corporation, also says that this is a good opportunity to buy and invest a house. Especially for those who are seeing it as a long -term investment. According to Kapoor, property prices are still quite attractive and home loan interest rate remains affordable. In Delhi -NCR major micro -markets, developers are getting better demands, where there is a lot of growth potential. “

Kapoor said, ‘RBI may further cut the policy rates in its upcoming monetary policy meeting, which will further boost buyers’ morale. The rate of home loan is low and the market is also largely stable. In such a situation, people who were still hesitating, which they can now decide to buy.

Which banks are giving the cheapest home loans

According to Bankbazar, Union Bank of India, Central Bank of India and Bank of Maharashtra have an initial interest rate of 7.85%, the lowest compared to all other financial institutions. Most government banks are offering home loans at 8% or less interest rates. However, the interest rate of most private banks and non-banking finance companies (NBFC) is 8% or more.

If you take a loan of ₹ 30 lakh for 20 years at an interest rate of 7.85%, then your EMI ₹ 24,814 month will be made. In this, you have to pay a total of ₹ 59.55 lakh. Out of this, ₹ 29.55 lakh will be interest. Accordingly, you can understand the interest of ₹ 50 lakh and ₹ 1 crore and EMI calculation from the table that went down.

Note: This calculation interest rate is considered to be 7.85% and the duration 20 years. Interest also depends on many aspects such as your credit score and income.

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