HDFC slashes home loan interest rates
Shares of Housing Development Finance Corporation (HDFC) slumped more than 2% after the private sector mortgage lender lowered interest rates by 5 basis points to 6.75%. The changes will be effective from Thursday 4 March.
HDFC has reduced its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL).
Meanwhile, lenders including the State Bank of India (SBI), Kotak Mahindra Bank also recently reduced the interest rates on home loans. The country’s top lender offers home loan interest rates starting from 6.70% per annum.
SBI cut home loan interest rates further to 6.70% for loans up to Rs 75 lakh. SBI has also cut the rates for home loans between Rs 75 lakh and Rs 5 crore to 6.75%. These concessional rates will be applicable only till March 31. SBI now offers the lowest home loan rates amongst banks, followed by Kotak Mahindra Bank which offers home loans starting at 6.75%. Both ICICI Bank and HDFC Bank offer home loans at a starting range of 6.80%. SBI crossed the Rs 5 trillion mark for its home loan portfolio and Chairman Dinesh Khara is hopeful of doubling the portfolio in the next five years. The lender is also giving a 100% waiver on processing fees. The interest concession is based on the loan amount and CIBIL score of the borrower.
Kotak Bank also recently cut 10 basis points (bps) in its home loan rates for a limited period, claiming its offering to be the lowest in the market. Customers will be able to avail of home loans for 6.65% till 31 March as part of a special offer after the rate reduction. The 6.65% rate is applicable to both home loans and balance transfer loans across amounts.
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.