India's top banks have reduced home loan interest rates amid RBI's efforts to give a fillip to the economy. Banks such as State Bank of India (SBI), Kotak Mahindra Bank, Axis Bank and Bank of Baroda recently announced that they have reduced the home loan interest rates to attract more buyers and surge demand especially during the festive season. They have also introduced new offers including discounts on processing fees or special benefits for women buyers to attract home buyers.
Home interest rates are at a 15 year low to deal with the setbacks created by the pandemic. State Bank of India, India's largest bank, now offers interest rates starting at 6.90% for a home loan of up to Rs 30 lakh and 7% for above Rs 30 lakh. The borrowers will get an interest concession of 25 bps on a home loan of above Rs 75 lakh, based on their CIBIL score. For women borrowers, the rates would be further lowered by 5 bps.
The bank said, "In an extension of its festive offers announced recently, the SBI offers a credit score-based concession of up to 20 bps, raised from 10 bps earlier, for a home loan of above Rs 30 lakhs and below Rs 2 crore across India." The same concession would also be applicable for a loan amount of up to Rs 3 crore in eight metro cities.
The Bank of Baroda announced that its home loan rates will start at 6.85%, starting Sunday. Similarly, Kotak Mahindra Bank's customers can avail home loans starting at 6.9% per annum this festive season. If borrowers of another bank switch the loan account to Kotak Mahindra Bank, they will be eligible to save up to Rs 20 lakh for transferring the balance, the bank said.
Union bank of India has cut its interest rate by 10 bps for home loans above Rs 30 lakh. Home loans at the Union Bank will start from 7% interest rates. There will be no processing fee on home loans till 31 December, the lender mentioned. Axis Bank is also offering home loans starting at 6.9% per annum.