Home loan rates cut ahead of festive season: HDFC joins SBI, BoB, PNB and Kotak Bank

Several banks have recently announced attractive home loan rates looking ahead to the festive season.
House on a palm
House on a palm
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Housing Development Finance Corporation (HDFC) has unveiled its special limited offer for the upcoming festive season, where customers can avail a HDFC Home Loan starting at 6.70% from September 20, 2021. This offer will cover all new loan applications irrespective of the loan amount or employment category, and the special rate is linked to the borrower’s credit score. This offer will be valid till October 31, 2021.

"We are pleased to announce the special home loan rates for the upcoming festive season. Housing is much more affordable today than it ever was. In the last couple of years, property prices have more or less remained the same in major pockets across the country while income levels have gone up. Record low-interest rates, subsidies under PMAY and the tax benefits have also helped,” said Renu Sud Karnad, Managing Director, HDFC Ltd. 

Looking ahead to the festive season, several banks including State Bank of India (SBI), Bank of Baroda (BoB), Punjab National Bank (PNB) and Kotak Mahindra Bank have announced attractive offers on home loans.

SBI has launched credit score-linked home loans at 6.70%, irrespective of the amount. Prior to the festive offer, a borrower availing a loan greater than Rs 75 lakh had to pay an interest rate of 7.15%. Besides, the SBI has removed the distinction between a salaried and a non-salaried borrower. "Now, there is no occupation-linked interest premium being charged to prospective home loan borrowers. This would lead to a further interest saving of 15 bps to non-salaried borrowers,” it said. 

“We have made the offers more inclusive and the offers are available to all segments of borrowers, irrespective of the loan amount and the profession of the borrower. The 6.70% home loan offer is also applicable to balance transfer cases. "We believe zero processing fees and concessional interest rates in the festive season will make homeownership more affordable,” SBI's Managing Director, Retail & Digital Banking, CS Setty said.

Kotak Mahindra Bank Ltd. has announced the reduction of its home loan interest rates by 15 basis points (bps) to 6.50%. This special rate of 6.50% per annum is a limited period festive season offer for the period of September 10 to November 8, 2021. The reduced rate would be available across all loan amounts and is linked to a borrower's credit profile. The revised rate would be applicable on both fresh home loans and balance transfer loans.

Ambuj Chandna, President, Consumer Assets, Kotak Mahindra Bank said: "People are looking for comfortable residences where the entire family can work, entertain and spend quality time together. Kotak's incredible 6.50% home loan interest rate now makes owning one's dream home even more affordable.”

Bank of Baroda is presently offering a waiver of 0.25% in the applicable rates for home loans and car loans. The bank’s home loan rates start at 6.75% and car loans at 7%. The bank has waived off processing fee on home loans. PNB has revised the Repo Linked Lending Rate from 6.80% to 6.55% with effect from September 17.

With IANS inputs

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