Owning the home of your dreams could soon become a reality. India’s major lenders – State Bank of India (SBI), Kotak Mahindra Bank and Axis Bank, Bank of Baroda – recently cut mortgage interest rates to boost demand during the holiday season. In addition to the historically low interest rates, there are tons of offers including discounts on processing fees or special benefits for women buyers to attract home buyers.
“Interest rates on home loans are at their lowest level in 15 years. Coupled with the lowest house prices and additional discounts and offers from developers, there are very real savings to be made on the investment. costliest in life, ”said Santhosh Kumar, vice president – ANAROCK Property Consultants.
Take a look at the mortgage interest rates offered by the different banks:
National Bank of India: State Bank of India, India’s largest lender, now offers interest rates from 6.90% for a home loan up to ??30 lakh and 7% for above ??30 lakh. Borrowers will get an interest concession of 25 basis points on a mortgage greater than ??75 lakh, based on their CIBIL score, the lender said.
“As an extension of its recently announced festive offers, the SBI is offering a concession based on the credit rating of up to 20bp, previously raised by 10bp, for a mortgage greater than ??30 lakhs and less ??2 crore across India, ”the lender said. The same concession would also be applicable for a loan amount of up to ??3 crore in eight metropolitan cities. An additional concession of 5 basis points for all home loans will be granted if applied through YONO, he added. A 5 basis point interest concession will be granted to female borrowers, the bank added.
Kotak Mahindra Bank: Customers can now avail home loans starting at 6.9% per annum this holiday season at Kotak Mahindra Bank. If borrowers from another bank transfer the loan account to Kotak Mahindra Bank, they will be able to save up to ??20 lakh for the transfer of the balance, the bank said. In addition, female applicants can obtain special rates on all loan products.
Bank of Baroda: The state-owned bank on Saturday announced a 15 basis point cut in its mortgage rate indexed to home loans. Mortgage rates at the Bank of Baroda will start at 6.85%, from Sunday.
Union Bank of India: The lender said it reduced its interest rate by 10 basis points for home loans above ??30 lakh. In addition, female borrowers will benefit from an additional reduction of 5 basis points in the interest rate on top of this reduction for such loans. Home loans to Union Bank will start from a 7% interest rate. There will be no processing fees on home loans until Dec. 31, the lender said.
Axis Bank also offers home loans starting at 6.9% per annum. Customers can benefit from home loans starting at 6.9% per annum from HDFC bank. The private lender charges 0.5% of the loan amount as a processing fee. However, the fees are capped at a maximum of ??3000. ICICI Bank offers home loans at 6.95%, up to 7.95%.
Never miss a story! Stay connected and informed with Mint. Download our app now !!