With an aim to attract as many home loan customers as possible before the ongoing fiscal year comes to an end, Kotak Mahindra and State Bank of India have cut their interest rates for a limited period.
Kotak Mahindra announced a 0.10 percentage point cut in its home loan rates for a limited period, claiming its offering to be the lowest in the market.
Customers of Kotak Mahindra Bank will be able to avail home loans for 6.65 per cent till March 31 as part of a special offer after the rate reduction.
Similarly, the home loan segment leader State Bank of India (SBI) cut its offering to 6.70 per cent. Home loan rates were already at a 15-year-low, as banks compete in a market with low credit demand.
Interest rates are linked to borrowers’ credit score and the Loan to Value (LTV) ratio, Kotak Mahindra Bank said.
We are delighted to offer consumers a special year-end bonus in the form of even lower home loan interest rates, its president for consumer assets Ambuj Chandna said, adding that the 6.65 per cent rate is applicable to both home loans and Balance Transfer Loans across amounts.
Home loans are the primary source of credit growth for the lenders and experts believe that the segment will witness a sharp rise as the state are offering certain relaxations.
SBI deputy MD (retail business) Saloni Narayan said, “earlier best rate was 6.8%, and now it is 6.7%. Earlier, there were three slabs, including one for loans up to Rs 30 lakh. Now we have one rate for loans up to Rs 75 lakh and another for larger loans.”