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SBI, HDFC cut home loan rates to 8.4% as part of festive offerings

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Despite rising interest rates, leading home loan players State Bank of India (SBI) and have announced discounted interest rates beginning at 8.4 per cent to new customers as part of their festive offerings.

SBI in a statement said it crossed Rs 6-trillion Assets Under Management (AUM) in residential as of September 30, 2022. It had crossed Rs 5 trillion in January 2021. The lender said it was offering a discount of up to 25 bps on interest rate to new home loan borrowers, making the entry level rate at 8.4 per cent and the offer will run up to January 31, 2023.

The interest rate rebate will also apply to balance transfer cases aka takeover of existing for peer lenders — and companies. The bank has also waived processing fees on till January 31, 2023. The are linked to credit score, meaning those with the best score will get the lowest possible rate.

SBI in a statement said it aimed to make home loans affordable for prospective buyers amidst the ongoing festive season. As a part of the festive bonanza, the bank will also offer a concession of up to 0.15 per cent on top-up loans, and 0.30 per cent on loans against property.

On becoming the first bank to reach the milestone Rs 6 trillion AUM, Dinesh Khara, SBI chairman, said over 2.8 million families have chosen to be their partner in the home-ownership journey. “A series of process and digital initiatives over the past few years played a crucial role in the journey to the Rs 6-trillion mark,” he said.

Its home loan portfolio grew by 13.77 per cent year on year to Rs 5.75 trillion at the end of June 2022. So, the public sector lender added loans worth Rs 25,000 crore in the second quarter ended September 2022. The bank aims to reach Rs 7-trillion mark for housing loan portfolio by September 2023, SBI officials said.

Meanwhile, the largest pure-play mortgage player, HDFC, which is awaiting its merger with its banking subsidiary Bank, said it was also offering discounted interest rates to new borrowers to the tune of 20 bps, or at 8.4 per cent.

According to website, the festive offer is valid up to November 30, and the low rate will be applicable to those borrowers who have a minimum credit score of 750.

(With inputs from PTI)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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