🏠 Should You Take a Home Loan in Mid-2025? Interest Rate Trends Explained
With the RBI expected to announce key policy changes in June 2025, many aspiring homeowners are wondering: Is now the right time to buy a home or continue renting? This guide will help you compare home loan interest trends, understand future predictions, and make smarter decisions — especially with platforms like Vizzve Financial offering fast, affordable housing loans across India.
📉 Home Loan Interest Rates – May 2025 Snapshot
As of now, home loan interest rates are ranging from:
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8.25% to 10.00% (floating) with most private banks and NBFCs
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Government schemes (PMAY) still offer special rates for eligible individuals
RBI’s upcoming monetary policy update in June 2025 may influence interest rates based on inflation and repo rate changes.
🏠 Home Loan vs Renting – What Makes Sense in 2025?
| Factor | Buying (with Loan) | Renting |
|---|---|---|
| EMI Commitment | Fixed monthly EMI | Variable monthly rent |
| Ownership | Long-term asset creation | No ownership |
| Tax Benefits | Section 80C, 24(b), 80EEA | No tax benefit |
| Flexibility | Low (locked into EMIs) | High (easy to shift) |
| Upfront Cost | Higher (down payment) | Low |
| Long-Term Value | Appreciating asset | No ROI |