Housing Development Finance Corporation Ltd. (HDFC) announced a festive offer for its customers on September 21. With the help of this special offer, customers can now home loans at 6.70 percent effective from 20 September 2021, the bank said in the release.
This new HDFC Home Loan offer will apply to all new loan applications irrespective of the loan amount or employment category. The special rate is linked to the borrower’s credit score. However, it is a temporary offer and is valid
till 31st October 2021, the lender said.
“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 as quoted by Money control.
Not only HDFC, but other banks like Bank of Baroda, Kotak Mahindra, PNB and SBI also reduced home loans rates to 6.70 percent. With the reduction, SBI home loan interest rates now start from 6.70 percent for loans up to Rs 30 lacs and 6.95 percent for loans above Rs 30 lacs and up to 75 lakh. And the loans above Rs 75 lacs would get home loans at 7.05 percent, the bank said.
The women borrowers will also get a special concession of 5 bps, the bank added. The rest of the customers can also apply for a loan from the ease of their home via the YONO App to earn an additional interest concession of 5 bps, SBI said. Earlier, SBI had reduced the home loan rate to 6.7 percent till March 31 as part of a festive offer post which rates were restored to 6.95 percent from April 1.
On September 9, Kotak Mahindra Bank announced that it has reduced home loan rates by 15 base points effective from September 10. Kotak Mahindra Bank Ltd (KMBL) will now offer home loans at an interest rate of 6.50 percent per annum instead of 6.65 percent per annum.