Major home lenders HDFC, SBI and Bank of Maharashtra have slashed home loan rates ahead of the festive season in a bid to attract more customers.
The country’s largest lender, the State Bank of India, cut the interest rate by 0.25%. The base interest rate is currently 8.40%.
On additional loans, the bank reduced rates by 0.15%. For home loans, the lender offers a 0.30% reduction in interest rates. In addition, it has also waived home loan processing fees until January 2023. The concession will also be applicable to customers who wish to transfer their existing home loans to other banks and finance companies.
|TARGET SCORE||Rates before||Current rates||Festive Concession|
|>= 800||8.55%||8.40%||15 basis points|
|750 – 799||8.65%||8.40%||25 basis points|
|700 -749||8.75%||8.55%||20 basis points|
Bank of Maharashtra also cut interest rates on home loans by 30 to 70 basis points. The current base rate for home loans is 8% per annum.
Private mortgage lender HDFC Bank, meanwhile, offers a standard interest rate of 8.4% on home loans to all customers with a credit score of 750 and above. Here, the bank also does not consider the amount, and the offer is valid until November 30, 2022.
Previously, the bank offered rates between 8.60 and 9%, depending on the amount and the customer’s credit score.
As part of its Diwali special, Bajaj Housing Finance Limited has also reduced its interest rate on home loans to 8.2% per annum for salaried and professional employees. The wholly owned subsidiary of Bajaj Finance Limited will be running this festive special from October 14 to November 30 and only applies to select locations.
The festive period around Navratri and Diwali is considered auspicious. Customers usually buy gold, silver, and even houses and cars to celebrate prosperity in life. Lenders across the country are offering exciting deals with plenty of lucrative deals to lure customers despite Reserve Bank of India‘s hike in repo rates. Typically, when the central bank revises its repo rates, banks and finance companies change their interest rates.