Real estate loans | Before the holiday season, mortgage interest rates at their lowest: check out the latest offers from SBI, ICICI, BoB, Kotak Mahindra and more

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Before the holiday season, mortgage interest rates at their lowest: check out the latest offers from SBI, ICICI, BoB, Kotak Mahindra and more

New Delhi: As the holiday season approaches, banks across India have started making offers and giving concessions. One of these phenomena that has been circulating recently is mortgage interest rates which are at an all time high across the country.

Despite the changes and revisions that banks and other private sector lenders are putting in place for clients ahead of the holiday season, many borrowers continue to be tied to their old loans, which in turn are tied to the Base Rate or Marginal Cost Lending Rate (MCLR). Most recent loans, on the other hand, are tied to an external benchmark which is the RBI repo rate for most banks.

External benchmarks are used for transparency when it comes to loans indexed to benchmarks. This often leaves lenders with no choice but to reduce the benefits of the reduced repo rate for clients. However, there is hope. Take a look at some of the home finance companies and banks that offer their clients the lowest interest rates on a home loan.

National Bank of India

The State Bank of India (SBI) previously reduced mortgage interest rates to 6.7% for any loan amount. This is the first time that a bank has granted flat rate home loans, the lender said.

Previously, a borrower with a loan greater than Rs 75 lakh had to pay an interest rate of 7.15%. With the introduction of festive offers, a borrower can now qualify for a home loan for any amount at a rate as low as 6.70%. The offer results in a saving of 45 basis points, which translates into a huge interest savings of over Rs 8 lakh, for a loan of Rs 75 lakh with a term of 30 years.

SBI has removed this distinction between a salaried borrower and a non-salaried borrower. The interest rate applicable to a self-employed borrower was 15 basis points higher than the interest rate applicable to a salaried borrower. From now on, no interest premium linked to occupancy is charged to potential borrowers of mortgage loans. This would lead to a new interest saving of 15 basis points for non-salaried borrowers.

HDFC

HDFC has announced that it will offer interest rates on home loans starting at 6.7%. “We are pleased to announce the special mortgage rates for the upcoming holiday season,” said Renu Sud Karnad, Managing Director of HDFC Ltd.

HDFC has announced that it will offer interest rates on home loans starting at 6.7%. “We are pleased to announce the special mortgage rates for the upcoming holiday season,” said Renu Sud Karnad, Managing Director of HDFC Ltd.

National Bank of Punjab

The public lender PNB also reduced the interest rate on mortgage loans above 50 lakh from 0.50% to 6.60%. Mortgage rates are the lowest among public sector banks, the bank said.

ICICI Bank customers can benefit from an attractive interest rate (linked repo rate) from 6.70% and processing fees from Rs 1,100 on new home loans and balance transfer from mortgage loans from other banks.

Baroda Bank

The Bank of Baroda also offers its clients a similar interest rate on home loans, which amounts to 6.75% for a home loan of Rs 75 lakh with a term of 20 years. This was also rolled out ahead of the holiday season, as did SBI.

Yes Bank

Yes Bank has announced that it is lowering mortgage rates to 6.7% per annum during the holiday season for a limited period. The Bank’s 90-day offer provides an additional benefit of 0.05% (the interest rate at 6.65%) for potential female employees who are home buyers.

Kotak Mahindra Bank

Kotak Mahindra Bank cut its interest rate by 15 basis points, bringing it down to 6.50% per annum. This makes it the lowest interest rate charged on home loans in the country. The bank made the announcement saying reduced rates would be offered on all loan amounts for balance transfer and balance transfer cases.

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