HDFC reduces interest rates on home loans; Change to the benefit of all existing retail home loan customers
New Delhi: The Housing Development Finance Corporation (HDFC) on Wednesday cut mortgage interest rates by 5 basis points to 6.75%. The changes will take effect from Thursday, March 4, the company said in a regulatory filing.
âHDFC is reducing its Retail Prime Rate (RPLR) on home loans, against which its Variable Rate Home Loans (ARHL) are compared, by 5 basis points, effective March 4, 2021. The change will benefit all existing HDFC commercial housing. credit customers, âhe said in the file.
Meanwhile, lenders, including the State Bank of India (SBI), Kotak Mahindra Bank, have also recently cut interest rates on home loans. The country’s leading lender offers interest rates for home loans starting at 6.70% per annum. The State Bank of India (SBI) further reduced mortgage interest rates to 6.70% for loans up to Rs 75 lakh. SBI also cut mortgage rates between Rs 75 lakh and Rs 5 crore to 6.75%.
These concessional rates will only be applicable until March 31. SBI now offers the lowest mortgage rates among banks, followed by Kotak Mahindra Bank which offers mortgage loans starting at 6.75%. Both ICICI Bank and HDFC Bank offer home loans starting at a range of 6.80%. The SBI had said it had passed the 5,000 billion rupee mark for its mortgage portfolio and President Dinesh Khara hopes to double the portfolio within the next five years.
The lender also grants a 100% waiver on the processing fee. The interest reduction is based on the loan amount and the borrower’s CIBIL score. SBI believes it is important to offer better rates to customers who maintain a good repayment history.
Kotak Bank also recently cut its mortgage rates by 10 basis points (bps) for a limited period, saying its offer is the lowest in the market. Customers will be able to take advantage of 6.65% home loans until March 31 as part of a special offer after the rate cut, the bank said in a statement. The rate of 6.65% applies to both mortgage loans and balance transfer loans by amounts.