Mortgage financier HDFC on Tuesday unveiled its special limited period offer for the upcoming festival season. Under this special offer, customers can avail HDFC Home Loans starting at 6.7 per cent per annum effective September 20.
Last week, SBI as part of festival bonanza offered a concessional home loan rate of 6.70 per cent under its festive offer. This was followed by other lenders like Punjab National Bank and Bank of Baroda.
“Housing is much more affordable today than it ever was. In the last couple of years, property prices have more or less remained the same in major pockets across the country while income levels have gone up. Record low interest rates, subsidies under PMAY and the tax benefits have also helped,” said Renu Sud Karnad, Managing Director, HDFC Ltd. Record low interest rates, subsidies under PMAY and the tax benefits have also helped, she said.
Low interest rates
Under the festive scheme, HDFC said, “Customers can avail HDFC Home Loan starting at 6.70 per cent per annum effective September 20, 2021. This offer will be applicable to all new loan applications irrespective of the loan amount or employment category,” HDFC said in a statement.
The special festive offer at 6.70 per cent is for all loan slabs and for all customers with credit score of 800 and above.
Before this special offer, the rate for salaried customers for loan above ₹75 lakh and credit score of 800 and above was 7.15 per cent and for self employed was 7.30 per cent. Hence, effective cut for these customers could be up to 45 bps for salaried and up to 60 bps for self employed.
This is a close ended scheme and will be valid till October 31, 2021.
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Other lenders including State Bank of India and Kotak Mahindra Bank have also recently announced cut in home loan rates for the festive season.
SBI is offering credit score linked home loans at 6.7 per cent, irrespective of the loan amount. Similarly, Kotak Mahindra Bank has reduced home loan rates to 6.5 per cent for a limited period.