Loans expected to be cheap in 2015 | Fusion - WeRIndia

Loans expected to be cheap in 2015

If you are planning to take a loan, it looks like 2015 will be in your favour. Loans are expected to become cheaper in this year. In 2014, interest rates have stayed high which was favourable for depositors.

However, this year is expected to be in favour of borrowers. HDFC bank has reduced its home loan rates by a marginal 15 basis points. In the budget, there was some relief for home loans customers. The deduction limit for home loans is raised from Rs 1.5 lakhs to Rs 2 lakhs. However, this is only beneficial for loans above Rs 15 lakh. This is because loans less than Rs 15 lakh will result in interest less than Rs 1.5 lakh a year.

In 2015, many experts are expecting rate cuts, however, it is not clear when this might happen. It is recommended to make use of the high investment rates by investing in fixed deposits until the interest rates are reduced.

Other changes in banking could include having to submit only one proof of address when opening a bank account or during a periodic updates. Banks are also expected to stop making penal charges but instead limit the services for bank accounts with balance less than minimum balance.

Image by Pete Linforth from Pixabay (Free for commercial use)

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