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MUMBAI : HSBC India has reduced its home loan interest rates by 10 basis points (bps) 6.45% per annum for customers who transfer their home loans to the bank.

This special rate, the bank said, is available across all loan amounts, and the bank has also waived off the processing fee for these loans. This special rate of 6.45% per annum will be effective from 1 October to 31 December. Other customers will be able to get home loans at 6.7%, it said.

Raghujit Narula, head wealth and personal banking at HSBC India, said, “We are delighted to celebrate the onset of festive season with special home loan transfer interest rates at 6.45% for our customers. We believe this reduction in the home loans rates will help reduce the interest burden of customers and make home ownership more affordable."

HSBC said its mortgage offering goes up to 30 crore and includes other benefits such as top-up loans, loans against property (LAP) and interest saving variant known as ‘Smart Home’.

Lenders expect a surge in home loan disbursals during the festival season, with mortgage rates touching decadal lows because of slush liquidity and drought in business lending. Anticipating demand for home loans, State Bank of India, Punjab National Bank, Bank of Baroda, and private lenders Kotak Mahindra Bank and Housing Finance Development Corp. (HDFC), Yes Bank have announced attractive home loan rates, which the lenders claim are because of speedier monetary policy transmission.

Home loan rates are now where deposit rates were in early 2019. While deposit rates have also declined since the start of the easing cycle, home loan rates have seen sharper cuts. Since Shaktikanta Das was named governor in December 2018, the Reserve Bank of India has lowered the repo rate by 250 basis points (bps).

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