Ahead of the festive season, India’s top lenders — State Bank of India (SBI), Kotak Mahindra Bank, and Axis Bank — is offering huge concessions on home loan interest rates to boost demands. State Bank of India, India’s largest lender, has recently announced a concession of up to 25 basis points (bps) in home loan interest rates. The borrowers will get an interest concession of 25 bps on a home loan of above ₹75 lakh, based on their CIBIL score the lender 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 ₹30 lakhs and below ₹2 crore across India,” the lender said.
The same concession would also be applicable for a loan amount of up to ₹3 crores in eight metro cities. An additional 5 bps concession for all home loans will be given if applied through YONO, it added. An additional 5 bps interest concession will be provided to women borrowers, the bank further mentioned.
SBI now offers interest rates starting at 6.90% for a home loan of up to ₹30 lakh and 7% for above ₹30 lakh.
“With SBI’s lowest interest on home loans, we believe this move will facilitate and encourage home buyers to plan their dream house,” C S Setty, MD (Retail and Digital Banking), SBI.
Kotak Mahindra Bank also reduced interest rates on home loans by a further 10 bps. Customers can now avail of the home loans starting at 6.9% per annum this festive season. If customers of another bank switch the loan account to Kotak Mahindra Bank, they will be eligible to save up to ₹20 lakh for transferring the balance, the bank earlier said. Moreover, women applicants can get special rates across loan products. Axis Bank is also offering home loans starting at 6.9% per annum.
“The excitement in the residential real estate sector is palpable this festival season; this optimism can be attributed to the recovery in residential real estate over the last few months. According to the recent Proptiger.com report, residential home sales aggregated to 35,132 units during Q3, an increase of 85% over the previous quarter,” said Dhruv Agarwala, Group CEO, Housing.com, Makaan.com, and Proptiger.com.
“The expectation that sales would see some buoyancy during the festival season can be ascribed to the fact that people have started realizing the importance of owning a home post-COVID-19,” he added.