As the real estate market in India is witnessing a surge in activity which is reflected in home sales and property registration, home loans are what buyers are looking for for their finances when buying a new residential unit. Home loan interest rates can vary depending on the borrower’s risk profile, gender and loan amount requested. These can also vary from bank to bank. Here are the interest rates offered by various lenders including HDFC, State Bank of India (SBI), Union Bank of India and Kotak Mahindra Bank:
HDFC, India’s largest mortgage lender, which is in the process of merging with HDFC Bank, offers home loans at an interest rate of between 7.15 and 8.05. The variation in the rate depends on the risk profile of the borrowers such as CIBIL score, gender and loan amount. If you have an excellent CIBIL score, you will get a cheaper interest rate compared to those with lower scores. Also, the higher the loan amount, the higher the interest rates.
These home loan interest rates are applicable to loans under HDFC’s variable rate home loan program and are subject to change at the time of disbursement.
The country’s largest lender, the State Bank of India (SBI), offers interest rates of 7-7.6% on home loans. Besides gender, the bank also has separate interest rates for move-in ready properties.
The Union Bank of India is currently offering an interest rate of between 6.9 and 8.6 percent based on salaried and self-employed borrowers regardless of gender. Private sector lender Kotak Mahindra Bank offers interest rates of 6.55-7.6% on home loans. Besides these interest rates, the lender also charges GST and processing fees, which can be around 0.5%.
While the RBI has raised policy rates to control the high rate of inflation, lenders have recently raised their interest rates for deposits and loans.
The real estate market is recovering
According to a report by real estate consultancy CBRE South Asia, home sales in the March quarter of 2022 jumped nearly 13% quarter-on-quarter to over 70,000 units and sales rebounded significantly d around 40% year-on-year.
“The share of the affordable/budget segment in sales remained stable at 27% in the first quarter of 2022 compared to the fourth quarter of 2021. While the sales of the premium category jumped to 23% in the first quarter of 2022 compared to 16% in the fourth quarter of 2022. , those in the mid-range segment fell to 41% during this quarter. The high-end and luxury housing segments also saw a slight increase in sales on a QoQ basis,” the report said.
India Ratings said the momentum is expected to continue in 2022-23 on strong demand, and home sales could jump around 12% year-on-year in the current financial year.
According to a report by real estate consultant Knight Frank India, the country’s main city, Mumbai, saw a 78% increase in property sales registrations in May to 9,523 units, the best in a decade. It contributed more than Rs 709 crore to state revenue, according to the report. Half of the listings were in the price range of Rs 1 crore and above, while the apartment size ranging between 500 and 1,000 square feet was the most preferred by buyers.
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