The home loan is very common type of loan that is availed by the common man for the purchase of home.

The home loan market is again heading towards sudden rise in interest rates as Reserve Bank of India has declared the hike in policy rates. This hike is of 25 basis points and may reflect in the home loan interest rates of major home loan providers. The hike in rate by RBI has come as a surprise for most of the home loan providers.

The experts speculate a rise in home loan rates following this hike but the home loan giants like HDFC and SBI still deny any immediate rate hike. The hike in rate will directly affect the banks that offer loan on the basis of the money market and hence their rate of interests will surely go up.

There are no further rate hikes expected as the Central Bank Governor has called it the last rate hike if the inflation eases out. The current hike is the part of the monetary policy being introduced to boost the slow economic growth. If these moves succeed in giving the push to the economy and also in controlling the inflation then the further hikes may not occur. The borrowers have all reasons to rejoice as this last hike can make the rates steady for a while.

The home loan market is witnessing continuous ups and downs due to this fluctuating RBI rate. The home buyers are also waiting for the steady market to take their buying decision. The property market is going slow due to these uncertainties faced by the buyers. The demand-supply curve in case of the property market is going downward and this hike may take it further down but if the home loan majors are to be believed then there would be no consequent rise in home loan rates.


The home loan is very common type of loan that is availed by the common man for the purchase of home.