Pritam, home loan rates of interest are already at the cheapest levels in almost one decade I feel. Most banks have already cut their rates of interest after successive repo rate cuts by the Reserve Bank. However, yes, you are right that some banks in India have been cutting on their MCLR in the last few weeks or days. Sometime back Union Bank of India, where a friend works, cut the MCLR by 5 basis points for all its tenors. 1-year MCLR is now 7.20% and it was 7.25% earlier. Indian Overseas Bank I have heard, has slashed the MCLR by 10 basis points also. This is reportedly effective already. Bank of Maharashtra is also among banks cutting MCLR; it has reportedly reduced by 10 basis points for some tenors.
All these updates have happened last week as far as I know. Also, Central Bank of India has cut MCLR too. 5 basis points reduction will be applicable for all durations and this is effective already. 1-year MCLR is now 7.10% and it was 7.15% earlier. Sounds like a good time to take a home loan?
Guys I will only consider going for home loan when the big guys like SBI and HDFC or even ICICI start cutting rates once again. They have cut in the past and may do again. Once that happens, I will know that the system is favoring a low-interest regime.