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HDFC on September 21 said it will offer home loans at 6.7 percent as part of a festive offer, joining a bunch of mortgage lenders that have cut interest rates to perk up demand.
Under this special offer, customers can avail HDFC Home Loan starting at 6.70 percent effective 20th September 2021, the bank said in a release.
This offer will be applicable to all new loan applications irrespective of the loan amount or employment category. The special rate is linked to the borrower’s credit score.
This is a close-ended scheme and will be valid till 31st October 2021, the lender said.
“Housing is much more affordable today than it ever was. In the last couple of years, property prices have more or less remained the same in major pockets across the country while income levels have gone up. Record low-interest rates, subsidies under PMAY, and the tax benefits have also helped.” said Renu Sud Karnad, Managing Director, HDFC Ltd.
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Recently, a clutch of banks including State Bank of India (SBI), Bank of Baroda, Kotak Mahindra, and PNB had slashed home loan rates.
On Saturday, SBI said it has reduced home loans rates to 6.70 percent. Also, women borrowers will get a special concession of 5 bps, the bank said in a release.
With the reduction, SBI home loan interest rates now start from 6.70 percent for loans up to Rs 30 lacs and 6.95 percent for loans above Rs 30 lacs and up to 75 lakh. The big-ticket loans above Rs 75 lacs would get home loans at 7.05 percent, the bank said. Customers can also apply for a loan from the ease of their home via the YONO App to earn an additional interest concession of 5 bps, SBI said.
Earlier, SBI had reduced the home loan rate to 6.7 percent till March 31 as part of a festive offer post which rates were restored to 6.95 percent from April 1.
Kotak Mahindra Bank announced on September 9 that it has reduced home loan rates by 15 base points effective September 10. Kotak Mahindra Bank Ltd (KMBL) will now offer home loans at an interest rate of 6.50 percent per annum instead of 6.65 percent per annum.
Banks have shifted aggressively to home loans during Covid times to cut risks of risky corporate loans.
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