Different banks are offering home loans for common people including the farming community to buy their own houses. Moreover, home loans have helped people to buy their own dream homes. The lower interest rates on home loans offered by banks have also helped boost real estate sales.
As per report, the Reserve Bank of India (RBI) has lowered its repo rate by 115 basis points (bps) since March 2020. Banks too have passed the benefits, with the highest pass-through offered to fresh loans. On Monday, the State Bank of India reduced its interest rate on home loans.
Kotak Mahindra Bank has recently announced a reduction in its home loan interest rates. Housing Development Finance Corporation (HDFC) on Wednesday reduced home loans interest rates where rates were already at a 15-year-low, as banks compete in a market with low credit demand.
HDFC (Housing Development Finance Corporation)
As per the officials of HDFC, the finance corporation has reduced home loans interest rates by 5 basis points to 6.75%. The changes will be effective from today (4 March).
"HDFC reduces its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from March 4, 2021," the lender said. The change will benefit all existing HDFC retail home loan customers, it mentioned.
Kotak Mahindra Bank:
Kotak Mahindra Bank also offers cheap home loans. Kotak Bank cut 10 basis points (bps) in its home loan rates for a limited period, claiming its offering to be the lowest in the market. Customers will be able to avail of home loans for 6.65% till 31 March as part of a special offer after the rate reduction, the bank said in a statement. The 6.65% rate is applicable to both home loans and balance transfer loans across amounts.
State Bank of India:
SBI offers home loan interest rates starting from 6.70% per annum. This is a limited period offer ending on 31 March. The lender is also giving a 100% waiver on processing fees. The interest concession is based on the loan amount and CIBIL score of the borrower. SBI provides a host of various home loans for the customers.
As per report, SBI says that affordability for the consumer increases immensely with the present offerings as the EMI will be reduced.
SBI Home Loan interest rates are linked to CIBIL score and start from 6.70 per cent for loans up to Rs 75 lakh, and 6.75 per cent for loans above Rs 75 lakh, says SBI official.
