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Several banks like the State Bank of India (SBI), Kotak Mahindra and Bank of Baroda (BoB) are offering loans at record low-interest rates to cash in the spending rush ahead of the festive season.

SBI cuts home loan rates

State Bank of India (SBI) on Thursday said it will charge home loan borrowers an interest of 6.7% based on their credit score, irrespective of the loan amount. This is part of the bank’s offers during the festive season to nudge demand and push credit growth. At present, borrowers with home loans over 75 lakh had to pay an interest rate of 7.15%, while others paid less. Since 1 May, the bank’s home loan rate for borrowers up to 30 lakh was at 6.8% and for those taking loans above 30 lakh and up to 75 lakh, the rate was at 7.05%, according to its website.

 “We are pleased to launch the festive offer for our prospective home loan customers. Generally, the concessional interest rates are applicable for a loan up to a certain limit and are also linked to the profession of the borrower. This time, we have made the offers more inclusive and the offers are available to all segments of borrowers irrespective of the loan amount and the profession of the borrower. The 6.70% home loan offer is also applicable to balance transfer cases. We believe zero processing fees and concessional interest rates in the festive season will make homeownership more affordable. Our country has shown tremendous resilience during the pandemic. Being the Banker to every Indian, we, are committed to doing our bit in reviving the economy by enabling housing for all," C.S. Setty, Managing Director (Retail & Digital Banking), SBI said.

Kotak Mahindra Bank cuts home loan rates 

Kotak Mahindra Bank has reduced its home loan interest rates by 15 basis points (bps) from 6.65% to 6.50% p.a starting tomorrow. This special rate of 6.50% p.a. is a limited period festive season offer beginning 10th September and ending 8th November 2021.

“Rates for both fresh home loans and balance transfers now start at 6.50% p.a., offering the best value to home buyers. This special rate is available across all loans amounts and is linked to a borrower’s credit profile," the lender said in a statement.

Bank of Baroda cuts home loan rates

Bank of Baroda on Thursday announced loan offers under which it has waived home and car loan rates. As per the revised rates, the lender is offering a waiver of @0.25% in the existing applicable rates for home and car loans. In addition to that, the bank is also offering a waiver of processing fees in home loans. Now, home loan rates will start at 6.75% and car loan rates start at 7.00%.

“ With the introduction of these retail loan offers for this festive season, we intend to bring festive cheer among our existing loyal customers and also offer new to bank customers an attractive proposition for availing home loans and car loans who will be benefited from lower rates and waiver of processing fee on offer," H.T.Solanki, GM- Mortgages & Other retail assets, Bank of Baroda said.

PNB waives service charges, processing fees on retail products

Another public lender Punjab National Bank (PNB) has done away with processing fend service charges on all loan amounts and on retail loans.

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