SBI, PNB, BoB, Kotak Bank cut home loan rates; check details here

Public and private banks are now offering home loans at record low-interest rates to cash in on the festive season demand and boost the market sentiments.

The offers are aimed to make home loans more affordable in the festive season. Source: Reuters

This festive season both public and private sector banks are in a competition to offer attractive interest rate offers to customers in retail loans. State-run banks like the State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) are now offering home loans at record low-interest rates to cash in on the festive season demand and boost the market sentiments.

Their private peer Kotak Mahindra Bank (KMBL) has also cut interest rates to lure customers.

State Bank of India (SBI)

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India’s largest lender as well as home loan provider, State Bank of India (SBI) has launched a bouquet of festive offers for prospective home loan customers. The offers are aimed to make home loans more affordable in the festive season. In a first-of-its-kind initiative, SBI offers credit score linked home loans at just 6.70 per cent, irrespective of the loan amount.

Earlier a borrower availing a loan greater than Rs 75 lakh, had to pay an interest rate of 7.15 per cent. 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 per cent. The offer results in a saving of 45 basis points, which translates to a huge interest saving of more than Rs 8 lakh, for Rs 75-lakh loan with 30-year tenure.

Further, the rate of interest applicable for a non-salaried borrower was 15 basis points higher than the interest rate applicable to a salaried borrower. SBI has removed this distinction between a salaried and a non-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 basis points to non-salaried borrowers.

The lender has waived off the processing fees completely and offers attractive interest concession based on the credit score of the borrower.

Kotak Mahindra Bank (KMBL)

Kotak Mahindra Bank (KMBL) has also started the festive season by announcing that it has reduced its home loan interest rates yet again by a further 15 basis points (bps) from 6.65 per cent to 6.50 per cent pa. This special rate of 6.50 per cent pa is a limited period festive season offer beginning 10th September and ending 8th November 2021, the lender has mentioned.

Rates for both fresh home loans and balance transfers now start at 6.50 per cent pa, offering the best value to home buyers. This special rate is available across all loans amounts and is linked to a borrower’s credit profile. Further, digital has completely transformed the home loan sanction process. With Kotak Digi Home Loans, home loan applicants can now apply for and receive an instant in-principle sanction letter along with their loan amount eligibility, the tenure of the loan, interest rate and EMI in an end-to-end fully digital, paperless and contactless process.

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Bank of Baroda (BoB)

Bank of Baroda is offering a waiver of 0.25 per cent in the existing applicable rates for home loans and car loans. The bank’s home loan rates start at 6.75 per cent and car loan rates at 7 per cent. It has also waived off processing fee on home loans. The customers can apply for home or car loans by using the lender’s mobile banking application or its website for instant sanction.

Punjab National Bank (PNB)

The Punjab National Bank (PNB) on 17th September announced that it has revised the Repo Linked Lending Rate (RLLR) from 6.80 per cent to 6.55 per cent with effect from 17th September 2021.

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