In the current scenario, Both current HDFC retail home loan customers will prosper from the move. SBI and Kotak Mahindra Bank cut home loan interest rates last week.
On Wednesday, the Housing Development Finance Corporation cut home loan interest rates by five basis points to 6.75 per cent. According to a regulatory filing, the amendments will take effect on March 4th. “With effect from March 4, 2021, HDFC benchmarked the Adjustable Rate Home Loans(ARHL) to its Retail Prime Lending Rate(RPLR)for housing loans by five basis points,” the lender said. It said that the move would favour all current HDFC retail home loan customers.
The market in lower interest rate
SBI and Kotak Mahindra Bank cut home loan interest rates last week. The country’s largest lender has home loan interest rates as low as 6.70 per cent a year. Standard home loan plans, SBI Privilege Home Loan for government employees, SBI Shaurya Home Loan for army and defence staff, SBI MaxGain Home Loan, SBI Smart Home, Top-up Loan for current customers, SBI NRI Home Loan, SBI FlexiPay Home Loan for a loan of a higher amount, and SBI Her Ghar Home Loan for women are among the home loan options offered by SBI. The bank has waived the processing fee on home loans until March 31, 2021. Kotak Bank has reduced its home loan rates by ten basis points (bps) for a limited time, claiming to have the lowest rates in the market.
After the rate cut, customers will be able to get home loans for 6.65 per cent until March 31, according to a bank’s release. The 6.65% rate applies to all home loans and balance shift loans, regardless of number.