In this festive period, public and private sector banks are competing to offer attractive interest rate offers to retail loan customers. State-owned banks like the State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) are now offering home loans at record interest rates to take advantage of holiday demand. end of the year and stimulate the market. feelings.
Their private counterpart Kotak Mahindra Bank (KMBL) also cut interest rates to attract customers.
State Bank of India (SBI)
The largest lender and provider of home loans in India, the State Bank of India (SBI) has launched a bunch of festive offers for potential home loan clients. The offers aim to make home loans more affordable during the holiday season. In a one-of-a-kind initiative, SBI offers home loans tied to credit score at just 6.70% regardless of the loan amount.
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 percent. 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.
In addition, the interest rate applicable to a self-employed borrower was 15 basis points higher than the interest rate applicable to a salaried borrower. SBI has removed this distinction between a salaried borrower and a non-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.
The lender has waived the processing fee completely and offers an attractive interest reduction based on the borrower’s credit rating.
Kotak Mahindra Bank (KMBL)
Kotak Mahindra Bank (KMBL) also started the holiday season by announcing that it has further reduced its mortgage interest rates by an additional 15 basis points (bps) from 6.65 percent to 6, 50 percent per year. This special rate of 6.50% per annum is a limited offer for the holiday season beginning September 10 and ending November 8, 2021, the lender said.
Rates on new home loans and balance transfers now start at 6.50% per annum, providing the best value for homebuyers. This special rate is available for all loan amounts and is linked to the borrower’s credit profile. In addition, digital technology has completely transformed the process of sanctioning home loans. With Kotak Digi Home Loans, home loan applicants can now apply for and receive an instant principle sanction letter along with their eligibility for loan amount, loan term, interest rate and EMI in a system of Fully digital end-to-end, paperless and contactless process.
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Baroda Bank (BoB)
Bank of Baroda offers a 0.25% exemption from existing applicable rates for home loans and car loans. The bank’s mortgage rates start at 6.75% and auto loan rates start at 7%. It also waived processing fees on home loans. Customers can apply for home or auto loans using the lender’s mobile banking app or website for instant sanction.
National Bank of Punjab (PNB)
The Punjab National Bank (PNB) announced on September 17 that it had revised the Repo Loan Rate (RLLR) from 6.80% to 6.55% effective September 17, 2021.