2 min read.Updated: 18 Sep 2021, 10:08 AM ISTLivemint
Demand for home loans has increased because of a greater interest in home buying triggered by the Covid pandemic
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Several banks in the country have cut their home loan rates with the onset of the festive season in order to make housing more affordable than ever before. Recently, India's three public sector banks--the State Bank of India (SBI), Punjab National bank (PNB), and Bank of Baroda (BoB), and private lender Kotak Mahindra Bank announced a slew of offers on home loans.
Demand for home loans has increased because of a greater interest in home buying triggered by the Covid pandemic, which has caused both work and education to shift to the homes, and also a downward trend in home prices.
Here's a comparison of home loan rates among banks during the festive period:
State Bank of India (SBI) home loan at 6.70%
The SBI said it would be offering home loans to its customers at concessional interest rates in two phases. According to the SBI Chief General Manager (CGM) Umesh Kumar, the first phase will be operated from September 1 to October 31, while the second phase will be operational from November 1 to December 31.
Customers wishing to take a home loan during this period can get it with a minimum floor rate of interest of 6.70%, irrespective of the loan amount.
Earlier a borrower availing of a loan greater than ₹75 lakh, had to pay an interest rate of 7.15%. With the introduction of the festive offers, a borrower can now avail home loan for any amount at a rate as low as 6.70%, the SBI said in a statement.
Besides, the country's largest public lender has also waived off processing fees and occupation-linked interest premiums. SBI has removed this distinction between a salaried and a non-salaried borrower. Now, there is no occupation-linked interest premium being charged to prospective home loan borrowers.
The PNB has also slashed the interest rate on home loan above ₹50 lakh by 0.50% to 6.60%. The home loan rates are lowest among public sector banks, the PNB claimed.
The state-owned lender said the rate will be linked with the applicant's credit score. Besides, the bank informed that it was already offering a full waiver of service charges/processing fees on home loan, vehicle loan, personal loan, pension loans, myProperty loan and gold loans under its 'Festival Bonanza Offer'.
Bank of Baroda (BoB) home loan at6.75%
State-owned Bank of Baroda is offering a waiver of 0.25% in the existing applicable rates for its home loans. The bank's home loan rates start at 6.75%. BoB has also waived off processing fee on home loans.
Kotak Mahindra Bank home loan at 6.50%
Kotak Mahindra Bank has announced a 0.15 percentage point cut in its lending rate, offering mortgages from 6.50%. The private lender said the home loan at a rate of 6.50% is only a festive period offer and will remain active till November 8. The offer on home loans will be available for both fresh home loans and also to balance transfers, the bank added.
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