Ideal time to take a loan | Fusion - WeRIndia

Ideal time to take a loan

Ideal time to take a loan

While it is true that taking a loan is not a great idea, that hasn’t stopped anybody from doing so. If you are looking to take a loan, this is the probably the best time in the year to go ahead with the plan.

The first reason why it is the best time is due to the festive season offers on loans which you can make use of now. State Bank of India which is the largest lender of India has put up quite a few offers for customers. The processing charges on home loans have been removed until the festive season. This could be a good time for you to go for that home loan you have been wanting.

Even Auto loans now have a zero per cent processing charges from State Bank till the end of festive season. Due to these offers, it seems that in case of home loans, the savings can be very attractive. They are like a discount now.

Furthermore, another benefit in this festive season is that you are getting interest rates on loans which are cheaper than normal. Since last year, all of the banks have reduced their lending rates. There are even cases where the drop in lending rates is 75 basis points or 0.75 per cent.

Most of the major banks like State Bank of India, HDFC Bank, ICICI Bank, Bank of Baroda, Canara Bank, Punjab National Bank, Syndicate Bank etc. all reduce their rates. Another reason for the reduction is the reduction of repo rate by the Reserve Bank of India by 50 basis points on September 29.

People wanting a loan might wonder if the rates might go down further. However, it is most likely not possible. RBI has already reduced repo rates by 1.25 percent this year, so it is most likely not possible to see any more cuts.

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