Top banks, lowered interest rates on new home loans

Home loan is a safer venture for banks and money lending institutions, as by default the bank can recover a large amount by having the property as a collateral. 

Experts say factors such as low interest rate, demand for bigger homes and secured propositions are the factors driving home loan rates. 

On September 9, Kotak Mahindra Bank, “As the world has changed and we are spending more time at home, our lifestyles have also evolved. People are looking for comfortable residences where the entire family can work, entertain and spend quality time together,” Ambuj Chanda, President, Consumer Assets. 

He informed the media about cutting down home loan rates by 15 bps to 6.50 percent. This is a limited offer bearing the validity of two months and applicable for all loan types of amounts and related to the borrower’s credit profile. 

On September 16, State Bank of India and Bank of Baroda had cut down home loan rates to 6.70 percent and 6.75 percent respectively. These public sector banks have waived off the processing fee. SBI has further allowed self-employed borrowers to borrow at the same level as compared to previous 15 bps higher than the ongoing rate. 

On September 17, Punjab National Bank also introduced festive offers on home loans at 6.60 percent applicable on balance transfer too. The bank also exempted loans from processing and decreased interest rate on home loans above Rs 50 lakh by 50 bps.