HDFC slashes home loan interest rates

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.

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