With the start of the holiday season, several banks across the country have cut mortgage rates to make housing more affordable for customers. the three big public sector banks in India; the National Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB), and a private lender Kotak Mahindra Bank announced a few home loan offers.
There is an increase in demand for home loans due to greater interest in buying homes triggered by the Covid-19 pandemic, which has caused the shift from work and education to housing, as well as a downward trend in house prices.
Let’s look at the mortgage rates at banks during the Indian holiday season:
State Bank of India (SBI):
SBI would provide home loans to its clients at concessional interest rates in two stages. According to Umesh Kumar, Chief Executive Officer (CGM) of SBI, the first phase will start from September 1 to October 31, however, 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 floor of 6.70%, regardless of the loan amount.
Earlier, a borrower takes out a loan greater than Rs 75 lakh, had to pay an interest rate of 7.15%. But now borrowers can take out a home loan for any amount at a rate as low as 6.70%, the SBI.
Apart from that, the nation’s largest public lender has also waived processing fees and profession-related interest premiums. SBI has removed this difference between a salaried borrower and a non-salaried borrower. From now on, no interest premium linked to occupancy is charged to potential borrowers.
National Bank of Punjab (PNB):
The PNB also lowered the interest rate on mortgages above Rs 50 lakh through 0.50% to 6.60%. Mortgage rates are the lowest among public sector banks, the PNB said.
Additionally, the bank said the rate would be tied to the applicant’s credit score. The bank also informed that it had previously offered full waiver of service / processing fees on a home loan, personal loan, car loan, retirement loans, myProperty loan and gold loans in the frame of his ‘Bonanza Festival Offer’.
Bank of Baroda (BoB):
The state-owned Bank of Baroda grants a 0.25% exemption from existing applicable rates for its home loans. Mortgage rates start to 6.75%. The bank also waived processing fees on home loans.
Kotak Mahindra Bank:
Kotak Mahindra Bank announced a 0.15 percent drop by one point in its borrowing rate, offering mortgages starting at 6.50%. The private lender declared that the mortgage at a rate of 6.50% is only a festive period offer and will remain active until November 8. This offer on home loans will be available both for new home loans and also for balance transfers, the bank added.
