It is time for the home loans interest rates hike. Already leading home loans provider HDFC and ICICI has rolled back the two year fixed rates scheme. Few weeks back RBI had hiked the CRR rates by 0.75%. It reduces the liquidity in the system and tightens the monetary policy. It leads to banks revise their interest rates.
As of now SBI is not planning to increase the home loans rates for the next few months. Most of the private players already started looking into the possible hike in the rates. RBI’s new base rate system also will harden the interest rates for the customers. Some people say the interest rates will be increased based on the incoming deposits to the banks from customers.