Several banks in the country cut their mortgage rates with the start of the Christmas season to make housing more affordable than ever. Recently, India’s three public banks – State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB), and private lender Kotak Mahindra Bank – announced a range of home loan offers.
Home loan demand has risen due to the increased interest in home purchases sparked by the Covid pandemic, which has resulted in both work and education moving into homes, and also due to a downward trend in house prices.
Here is a comparison of Home Loan Interest Rates between banks during the holidays:
State Bank of India (SBI) home loan at 6.70%
The SBI said it would offer two-stage home loans to its customers at discounted rates. According to SBI Chief General Manager (CGM) Umesh Kumar, the first phase will operate from September 1 to October 31, while the second phase will operate from November 1 to December 31.
Customers who want to take out a home construction loan during this period can get it at a minimum interest rate of 6.70% regardless of the loan amount.
Previously, a borrower has drawn more than a loan â¹75 lakh, had to pay an interest rate of 7.15%. With the launch of the festive deals, a borrower can now get a home loan for any amount at an interest rate of only 6.70%, the SBI said in a statement.
In addition, the country’s largest public lender waives processing fees and job-related interest surcharges. SBI has removed this distinction between an employed and a non-employed borrower. Now there is no professional interest rate charge applied to potential home loan borrowers.
Punjab National Bank (PNB) home loan at 6.60%
The PNB has also lowered the home loan interest rate above â¹50 lakh by 0.50% to 6.60%. The PNB claimed that mortgage rates on home loans are the lowest among public banks.
The state lender said the interest rate is linked to the applicant’s creditworthiness. The bank also announced that it is already offering a complete waiver of service / processing fees for home loan, vehicle loan, personal loan, annuity loan, myProperty loan and gold loan as part of its âFestival Bonanza offerâ.
Bank of Baroda (BoB) home loans at 6.75%
The state-run Bank of Baroda is offering a 0.25% interest rate waiver on their home loans. The bank’s mortgage rates start at 6.75%. BoB has also waived the home loan processing fee.
Kotak Mahindra Bank Home Loan at 6.50%
Kotak Mahindra Bank has announced a 0.15 percentage point reduction in lending rates and offers mortgages from 6.50%. The private lender said the 6.50% home loan is a holiday offer only and will stay active through November 8th. The home loan offering will be available for both new home loans and balance transfers, the bank added.
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