Housing loans have helped prospective homeowners in purchasing their dream homes. The home loan market in India is further expected to register a staggering CAGR of 22.5% over the next five years (2025-2030). In 2025 alone, the Reserve Bank of India (RBI) cut the repo rate thrice, while the central bank has chosen to keep the repo rate unchanged at 5.5% during the latest MPC meeting. All of these work in favour of borrowers seeking home loans, as they can enjoy lower interest rates, translating to lower EMIs.
However, despite the rising awareness and easy access to financial information, some borrowers remain sceptical of home loans, clinging to unfounded beliefs and myths. This can lead to making wrong financial decisions and missing lucrative opportunities. For example, some still believe opting for a home loan balance transfer isn’t beneficial, even though it has traditionally helped borrowers save lakhs of rupees while repaying loans.