Several banks like the State Bank of India (SBI), Kotak Mahindra and Bank of Baroda (BoB) are offering loans at record interest rates to cash in on the spending rush before the holiday season.
The SBI lowers mortgage rates
The State Bank of India (SBI) announced Thursday that it will charge mortgage borrowers 6.7% interest based on their credit score, regardless of the loan amount. This is part of the bank’s holiday offerings to stimulate demand and boost credit growth. At present, borrowers with mortgage loans greater than ??75 lakh had to pay 7.15% interest rate, while others paid less. Since May 1, the bank mortgage rate for borrowers up to ??30 lakh was at 6.8% and for those who took higher loans ??30 lakh and up ??75 lakh, the rate was 7.05%, according to its website.
“We are happy to launch the festive offer for our potential mortgage loan clients. Generally, concessional interest rates are applicable for a loan up to a certain limit and are also related to the profession of the borrower. This time, we have made the offers more inclusive and the offers are accessible to all segments of borrowers regardless of the amount of the loan and the profession of the borrower. The 6.70% mortgage offer is also applicable to cases of balance transfer. We believe zero processing fees and great interest rates during the holiday season will make homeownership more affordable. Our country has shown tremendous resilience during the pandemic. As every Indian’s banker, we are committed to doing our part to jumpstart the economy by enabling housing for all, ”said CS Setty, Managing Director (Retail & Digital Banking), SBI.
Kotak Mahindra Bank cuts mortgage rates
Kotak Mahindra Bank has cut interest rates on its home loans by 15 basis points (bps) from 6.65% to 6.50% per annum from tomorrow. This special 6.50% pa rate is a limited offer for the holiday season starting September 10 and ending November 8, 2021.
“Rates on new home loans and balance transfers now start at 6.50% per annum, providing the best value for homebuyers. This special rate is available for all loan amounts and is linked to the borrower’s credit profile, ”the lender said in a statement.
Bank of Baroda cuts mortgage rates
The Bank of Baroda on Thursday announced loan offers under which it waived rates on home and auto loans. In accordance with the revised rates, the lender is offering a waiver of @ 0.25% of the existing applicable rates for home and auto loans. In addition to this, the bank also offers a mortgage processing fee waiver. From now on, mortgage rates will start at 6.75% and auto loan rates will start at 7.00%.
“With the implementation of these credit offers to individuals for this holiday season, we intend to bring joy to our existing loyal customers and also to offer new bank customers an attractive proposition to benefit from real estate loans and auto loans that will benefit from lower rates and waiver of proposed processing fees, ”said HTSolanki, GM-Mortgages and Other Retail Assets, Bank of Baroda.
PNB renounces the service charges, Processing costs on retail products
Another public lender Punjab National Bank (PNB) has removed the treatment of service charges on all loan amounts and on personal loans.
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