New Delhi: Making housing affordable for all, several banks like Housing Development Finance Corporation (HDFC), State Bank of India (SBI), have announced to cut their home loan rates to perk up the demand. “Under this special offer, customers can avail of HDFC Home Loan starting at 6.70 per cent effective September 20, 2021, “the mortgage lender said in a release.
SBI and HDFC home loan offer will be applicable to all new loan applications irrespective of the loan amount or employment category. The special rate is linked to the borrower’s credit score of 800 and above.
Before this special offer, the rate for salaried customers for loans above ₹75 lakh and a credit score of 800 and above was 7.15 per cent and for self-employed was 7.30 per cent.
Hence, effective cuts for these customers could be up to 45 bps for salaried and up to 60 bps for self-employed.
This is a close-ended scheme and will be valid till 31st October 2021, the lender said.
“Housing is much more affordable today than it ever was. In the last couple of years, property prices have more or less remained the same in major pockets across the country while income levels have gone up. Record low-interest rates, subsidies under PMAY, and the tax benefits have also helped.” said Renu Sud Karnad, Managing Director, HDFC Ltd.
SBI home loans at 6.7%
In a first-of-its-kind initiative, SBI is offering credit score linked home loans at just 6.70%, irrespective of the loan amount. Earlier a borrower availing of a loan greater than ₹75 lakh, had to pay an interest rate of 7.15%. With the introduction of the festive offers, a borrower can now avail home loan for any amount at a rate as low as 6.70%. The offer results in a saving of 45 bps which translates to a huge interest saving of more than ₹8 lakh, for a ₹75 lakh loan with a 30-year tenure.
SBI has removed this distinction between a salaried and a non-salaried borrower. The rate of interest applicable for a non-salaried borrower was 15 bps higher than the interest rate applicable to a salaried borrower. Now, there is no occupation-linked interest premium being charged to prospective home loan borrowers. This would lead to a further interest saving of 15 bps to non-salaried borrowers.
“This time, we have made the offers more inclusive and the offers are available to all segments of borrowers irrespective of the loan amount and the profession of the borrower. The 6.70% home loan offer is also applicable to balance transfer cases. We believe zero processing fees and concessional interest rates in the festive season will make homeownership more affordable,” C.S. Setty, Managing Director (Retail & Digital Banking), SBI said.