HDFC cuts home loan rates for festival season, joins SBI, PNB and Bank of Baroda
One of India's leading private bank HDFC announced on Tuesday that it is cutting the home loan rates for the upcoming festival season, Livemint reported. During the offer, those interested in taking the loan can avail it at 6.70 per cent as against the current rate of 6.75 per cent, Livemint report said.
The offer will be applicable to all new loan application irrespective of the amount or a person's employment status. The offer was launched on Monday (September 20) and will continue till October 31, Livemint reported quoting a statement from HDFC.
The offer comes days after Punjab National Bank (PNB) Bank of Baroda (BoB), and private lender Kotak Mahindra Bank announced benefits on home loans during the festival season.
PNB slashed the interest rate on home loan above ₹50 lakh by 0.50 per cent to 6.60 per cent. "PNB has announced that now home loans are offered at 6.60 per cent irrespective of any upper ceiling limit," it said in a statement.
Bank of Baroda too announced a waiver of 0.25 per cent in the existing applicable rates for Baroda Home Loans and Baroda Car Loans. The bank's home loan rates start at 6.75 per cent and car loan rates at 7 per cent.
It has also waived off processing fee on home loans.
The country's largest lender, State Bank of India (SBI), last week announced various festive offers for prospective home loan customers, including a credit score-linked home loans starting at 6.70 per cent, irrespective of the loan amount.
This will result in a saving of 45 basis points (bps) which translates to a interest saving of more than ₹8 lakh, for a ₹75 lakh loan with a 30-year tenure, the bank said.
Earlier, a borrower availing a home loan above ₹75 lakh had to pay an interest rate of 7.15 per cent.
Several real estate developers and consultants said these concessional interest rates on home loans will lead to a strong consumer demand in India's residential property market.