Did You Take Your Home Loan Before April 2016? It May Get Cheaper Soon
If you bought your home before April 2016 with the help of home loan, here is good news for you. In a directive issued on February 8, the Reserve Bank of India has asked financial institutions to link the old home loans with the marginal cost of funds-based lending rates. It was on April 1, 2016, that the new lending benchmark was launched by the Reserve Bank. Prior to that, home loans were linked with the base rate. The MCLR regime is more in line with the policy changes implemented by the RBI from time to time, unlike the previous base rate regime.