Government or private? Where is the cheapest home loan getting after repo rate cut?

 Business News: This is a relief news for those taking home loans after the recent repo rate cut by the Reserve Bank of India (RBI). The reduction in repo rate directly affects home loan interest rates, which can reduce your monthly EMI. In such a situation, the question arises - the government banks are cheap or private bank more beneficial? Both have their advantages and disadvantages. It is important to know which bank is currently giving home loans at how much interest rate and what is important to take care of.

What is a repo rate and how does it affect?

The repo rate is the rate on which RBI gives loans to banks. When RBI reduces the repo rate, banks also start giving loans to customers at low interest. This has a direct impact on those who want to take home loan or other loans. After this cut in 2025, many banks have now changed their home loan rates.
Government bank: reliable but slow process. Government banks, such as SBI, PNB, and Bank of Baroda usually offer home loans at low interest rates than private banks.

• SBI Home Loan: Starts from 8.30%
• PNB Home Loan: 8.35%
• Bob Home Loan: 8.40%

Benefits:

• low interest rates
• Trust and security
• Lower or waived processing fees

Loss:

• Interest rate slightly higher
• More processing fees
• Possibility of hidden charges
• What should be kept in mind besides the interest rate?
• While taking a home loan, it is important to pay attention to not only interest rate, but also some other things:
• Processing fees
• Loan tenure (period)
• Pre-payment and four-close charges
• Quality of customer service
• Loan transfer facility

It would be wise to choose a bank only by comparing all these aspects.

Where is getting the cheapest home loan?

Currently, government banks like SBI and PNB are offering home loans at the cheapest rate. However, if you have more importance of early approval, online processing and customer care, private banks like HDFC and ICICI can be better options for you. Taking a home loan due to repo rate cuts has become cheaper than before. But deciding whether the government banks are better or private, completely depends on your need, convenience and budget. If you want a low interest rate and have some time, then choose a government bank. At the same time, if you want a loan quickly and want a technology friendly process, then turn to the private bank.
Remember : Choosing the right bank, can make your entire loan experience easier and economical.