HDFC slashes home loan interest rates; Change to benefit all existing retail home loan customers&
New Delhi: Housing Development Finance Corporation (HDFC) on Wednesday slashed home loans interest rates by 5 basis points to 6.75%. The changes will be effective from Thursday (4 March), the company said in a regulatory filing.
“HDFC reduces its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from March 4, 2021. The change will benefit all existing HDFC retail home loan customers,” it mentioned in the filing.
Meanwhile, lenders including the State Bank of India (SBI), Kotak Mahindra Bank also recently reduced the interest rates on home loans. The country’s top lender offers home loan interest rates starting from 6.70% per annum. State Bank of India (SBI) cut home loan interest rates further to 6.70% for loans up to Rs 75 lakh. SBI has also cut the rates for home loans between Rs 75 lakh and Rs 5 crore to 6.75%.
These concessional rates will be applicable only till March 31. SBI now offers the lowest home loan rates amongst banks, followed by Kotak Mahindra Bank which offers home loans starting at 6.75%. Both ICICI Bank and HDFC Bank offer home loans at a starting range of 6.80%. SBI had said that it crossed the Rs 5 trillion mark for its home loan portfolio and Chairman Dinesh Khara is hopeful of doubling the portfolio in the next five years.
The lender is also giving a 100% waiver on processing fees. 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.
Kotak Bank also recently cut 10 basis points (bps) in its home loan rates for a limited period, claiming its offering to be the lowest in the market. Customers will be able to avail of home loans for 6.65% till 31 March as part of a special offer after the rate reduction, the bank said in a statement. The 6.65% rate is applicable to both home loans and balance transfer loans across amounts.
