Housing Development Finance Corporation on Wednesday reduced home loans interest rates by 5 basis points to 6.75%. The changes will be effective from 4 March, the company said in a regulatory filing. "HDFC reduces its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from March 4, 2021," the lender said. The change will benefit all existing HDFC retail home loan customers, it mentioned.
Last week, State Bank of India (SBI), Kotak Mahindra Bank also reduced the interest rates on home loans. The country's top lender offers home loan interest rates starting from 6.70% per annum. SBI provides a host of various home loans for the customers — regular home loan plans, SBI Privilege Home Loan for government employees, SBI Shaurya Home Loan for army and defense personnel, SBI MaxGain Home Loan, SBI Smart Home, Top-up Loan for existing customers, SBI NRI Home Loan, SBI FlexiPay Home Loan for a loan of the higher amount and SBI HerGhar Home Loan for women. The bank waived the processing fee on home loans till 31 March, 2021.
Kotak Bank also cut 10 basis points (bps) in its home loan rates for a limited period, claiming its offering to be the lowest in the market. Customers will be able to avail of home loans for 6.65% till 31 March as part of a special offer after the rate reduction, the bank said in a statement. The 6.65% rate is applicable to both home loans and balance transfer loans across amounts.
