ICICI vs SBI vs Kotak Mahindra vs HDFC: The most economical mortgage interest rates on the market today | Photo credit: BCCL
- Historically low interest rates on home loans will make people finally take a call and reserve their dream home, says Dhruv Agarwala, group CEO, Housing.com
- ICICI Bank, SBI Bank, Kotak Mahindra Bank and HDFC Ltd have cut mortgage interest rates in recent days
- The reduced interest rates are part of the limited home loan offers that will remain valid until March 31
Bank ICICI on Friday cut mortgage interest rates to 6.70% for a limited period. The reduced interest rates which are the lowest in 10 years are available until March 31, 2021, the bank said in a statement. The rates of India’s second-largest private lender for home loans are now comparable to those of SBI Bank.
“We are seeing an upsurge in demand from consumers, who want to buy homes for their own consumption, in recent months. We believe that the time has come for an individual to buy their dream home, given the prevailing low interest rates, ”ICICI Bank’s guaranteed asset manager Ravi Narayanan said in a statement.
Kotak Mahindra Bank, HDFC Ltd and SBI Bank have made similar announcements in recent days reducing mortgage rates in the country to their lowest level in 15 years. Other banks are expected to follow suit.
The SBI led the round of cuts by cutting interest rates to 6.70% for top-rated borrowers; this move was followed by small rival Kotak Mahindra Bank and non-bank lender Housing Development Finance Corporation (HDFC) Ltd.
SBI mortgage interest rates
India’s largest public sector bank said earlier that it offers up to 70 basis points (100 basis points = 1%) to borrowers with the highest credit rating. In its limited-time offer valid until March 31, SBI is also granting a 100% waiver on processing fees, it said earlier in a statement.
Interest rates start at 6.70% for the loan amount up to Rs 75 lakh and 6.75% for over Rs 75 lakh. Those who apply from the bank’s YONO app can get an additional 5 basis points interest reduction. The bank also announced an interest concession of 5 basis points to female borrowers.
Kotak mortgage interest rates
Kotak Mahindra slashed mortgage prices on March 1 by an additional 10 basis points to 6.65%, the lowest in the market. The special offer is valid until March 31 and will be applicable to all loan accounts, the bank said in a statement.
After recent cuts, Kotak Mahindra’s interest rates are lowest at 6.65% while those offered by HDFC were highest at 6.75%.
Ambuj Chandna, President – Consumer Assets at Kotak Mahindra Bank told ET NOW earlier that there was an increase in home sales due to the large factor of working from home. Mortgage rates are at their lowest in 15 years, making home buying affordable, he added.
HDFC Ltd mortgage interest rates
Non-bank financier HDFC Ltd on Thursday announced a 5 basis point drop in mortgage lending. The rate offered by the bank is the highest in the market at 6.75% and will be valid until March 31.
“HDFC is reducing its Retail Prime Rate (RPLR) on home loans, against which its Variable Rate Home Loans (ARHL) are compared, by 5 basis points, effective March 4, 2021,” HDFC said in a statement. communicated earlier.
Dhruv Agarwala, Group CEO, Housing.com, Makaan.com.com, PropTiger.com said in a statement: “With the latest cut announced by SBI followed by private banks and financial institutions like Kotak Mahindra and HDFC, Home loan rates are now at an all time low. Needless to say, this move will encourage people, especially the fence guards, to finally take a call and reserve their dream home. Plus, as SBI is the most The country’s major lender and also a pioneer in many ways, other banks have started to follow suit and it is likely that many more HFCs will follow suit in the coming days which is in line with government strategy and of the RBI to stimulate the real estate industry. ”
“The reduction in mortgage interest rates by several banking institutions is a clear indication of the impact that real estate can have on strengthening the economy. We welcome this decision as it has the potential to benefit various players in the real estate industry. Buyers “delaying their home buying decisions is likely to come forward and invest, which will give momentum on the demand side,” said Prasoon Chauhan, founder and CEO of BlackOpal.