Kotak Mahindra Bank on March 1 reduced the home loan interest rate by a further 10 basis points (bps) to 6.65 percent per annum – the lowest in the market. This is a special rate that is applicable till March 31, 2021, the bank said in a statement, adding the rate is applicable across all loan accounts.
The private lender said the interest rates are linked to borrowers’ credit score and the Loan to Value (LTV) ratio. The bank said the rates will be applicable for both the salaried and self-employed customer segments.
Also read: Kotak Mahindra Bank reduces home loan interest rate to 6.65% till March 31
“Kotak continues to set the pace as the price leader in the home loan market and we are delighted to offer consumers a special year-end bonus in the form of even lower home loan interest rates. This is indeed the best time to buy a home,” Kotak Mahindra Bank’s President–Consumer Assets Ambuj Chandna said.
The move comes hours after the State Bank of India (SBI) reduced the rate on home loans to 6.70 percent till 31 March, the bank said in a statement.
The lender is also giving a 100 percent waiver on processing fees, it said.
Also read: SBI reduces home loan rate to 6.7 % till March 31
The interest concession is based on the loan amount and CIBIL score of the borrower. SBI believes that it is important to extend better rates to customers who maintain good repayment history, the bank said.
“SBI, being the market leader in home finance, takes ownership in bolstering consumer sentiments. The affordability for the consumer increases immensely with the present offerings as the EMI will be reduced,” the bank said.
SBI Home loan interest rates are linked to CIBIL score and start from 6.70 percent for loans up to Rs. 75 lakh and 6.75 percent for loans above Rs. 75 lakhs, the bank said.
Customers can also apply from the ease of their home via YONO App to get additional interest concession of 5 bps. On the eve of International Women’s day, a special 5 bps concession is being made available to the women borrowers, the bank said.
The home loan portfolio of the bank has crossed the milestone of Rs. 5 lakh crore, it said. As of December 31, 2020, the bank has a deposit base of over Rs. 35 lakh crore and advances of more than Rs. 26 lakh crore with a CASA ratio of about 45 percent. SBI commands over 34 percent market share in home loans and around 33 percent in the auto loans segment, the bank said.
Home loan rates were already at a 15-year-low, as banks compete in a market with low credit demand.