MUMBAI : HSBC India has cut its mortgage interest rates by 10 basis points (bps) 6.45% per annum for customers who transfer their home loans to the bank.
This special rate, the bank said, is available for all loan amounts, and the bank has waived processing fees for these loans as well. This special rate of 6.45% per annum will be effective from October 1 to December 31. Other clients will be able to obtain 6.7% home loans, he said.
Raghujit Narula, Head of Wealth Management and Personal Banking Services at HSBC India, said: “We are delighted to celebrate the start of the holiday season with special interest rates on home loan transfers at 6, 45% for our customers. We believe this reduction in mortgage rates will help reduce customer interest charges and make home ownership more affordable. “
HSBC said its mortgage supply amounted to ??30 crore and includes other perks such as top-up loans, Home Ownership Loans (LAPs), and the interest-saving variant known as “smart homeâ€.
Lenders expect mortgage disbursements to increase during festival season, with mortgage rates reaching ten-year lows due to liquidity and drought in business loans. Anticipating demand for home loans, the State Bank of India, Punjab National Bank, Bank of Baroda and private lenders Kotak Mahindra Bank and Housing Finance Development Corp. (HDFC), Yes Bank announced attractive mortgage rates, which lenders say is due to faster transmission of monetary policy.
Mortgage rates are now where deposit rates were at the start of 2019. While deposit rates have also fallen since the start of the easing cycle, mortgage rates have taken steeper cuts. Since Shaktikanta Das was appointed governor in December 2018, the Reserve Bank of India has lowered the repo rate by 250 basis points (bps).
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