Since it is the festive season now, many banks and non-banking financial institutions are announcing their festival offers like lower interest rates on loans and waiver of processing fees. Mortgage lender, Housing Development Finance Corp or HDFC, said that it will be offering home loans at 6.7% interest rate for those with credit scores above 800, according to the lender’s website.
“ This Offer will be applicable to all new loan applications irrespective of the loan amount or employment category. The special rate is linked to borrower’s credit score. This is a close ended scheme and will be valid till 31st October 2021.,” HDFC stated in a press release.
According to HDFC, “before this special offer the rate for salaried customers for loan above Rs 75 lakh and credit score of 800 and above was 7.15 % and for self-employed was 7.30%. Hence, effective cut for these customers could be up to 45 bps for salaried and up to 60 bps for self-employed,” .
HDFC has also reduced its processing fees to Rs 3, 000 plus taxes (from Rs 10, 000 plus taxes).
Banks’ festive season offers
State Bank of India (SBI) is offering festive season home loans at 6.70% irrespective of loan amount, Kotak Mahindra Bank has reduced rates to record lows of 6.5%.
SBI has also waived processing fees on home loans.
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Separately, Kotak’s festive offer of 6.5% is the lowest in the industry and will be valid from September 10 to November 8. The limited festive period offer will be applicable across all loan amounts, and on both fresh loans and balance transfer cases.
Punjab National Bank has waived service charges and processing fees on all retail products.
Bank of Baroda has also launched retail loan offers ahead of the festive season. The bank is offering a waiver of 25 basis points on prevalent interest rates for home and car loans. Home loans for the public lender start at 6.75% and car loans at 7%. The bank is also offering a waiver of processing fees on home loans.