Banks cut mortgage rates over the holiday season. Details here
Several banks across the country cut mortgage rates with the start of the holiday season to make housing more affordable than ever. Recently, India’s three public sector banks – State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) and private lender Kotak Mahindra Bank announced a series of offers home loans.
The demand for home loans has increased due to increased interest in buying homes triggered by the Covid pandemic, which has caused a shift from work and education to housing, as well as a trend of lower housing prices.
Here is a comparison of mortgage rate among banks during the holiday season:
State Bank of India (SBI) mortgage at 6.70%
The SBI said it would offer home loans to its clients at concessional interest rates in two phases. According to SBI (CGM) Managing Director Umesh Kumar, the first phase will operate from September 1 to October 31, while the second phase will be operational from November 1 to December 31.
Customers wishing to take out a mortgage during this period can obtain it with a minimum interest rate of 6.70%, regardless of the amount of the loan.
Previously, a borrower with 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 qualify for a home loan for any amount at a rate as low as 6.70%, the SBI said in a statement.
In addition, the country’s largest public lender has also waived processing fees and interest premiums related to the profession. 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.
Punjab National Bank (PNB) mortgage at 6.60%
The PNB also lowered the interest rate on mortgages above ??50 lakh from 0.50% to 6.60%. Mortgage rates are the lowest among public sector banks, PNB said.
The public lender said the rate would be tied to the applicant’s credit rating. In addition, the bank informed that it already offers full waiver of service fees / processing fees on home loans, auto loans, personal loans, retirement loans, myProperty loans and gold loans. as part of its âBonanza Festival Offerâ.
Real estate loan from Bank of Baroda (BoB) in 6.75%
Baroda’s state-owned bank offers a 0.25% exemption from existing applicable rates for its mortgage loans. The bank’s mortgage rates start at 6.75%. BoB has also waived processing fees on home loans.
Kotak Mahindra Bank mortgage at 6.50%
Kotak Mahindra Bank announced a 0.15 percentage point cut in its lending rate, offering mortgages starting at 6.50%. The private lender said the 6.50% home loan is just a festive period offer and will remain active until November 8. The home loan offer will be available both for new home loans and also for balance transfers, the bank added.
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