SBI, HDFC slash home loan rates

The country’s premier lender State Bank of India (SBI) and leading mortgage major Housing Development Finance Corp (HDFC) on Thursday slashed home loan rates by 15-35 basis points (bps).

SBI reduced the rate by 15-35 bps on home loans up to Rs 75 lakh, while HDFC, as part of its festival offer, decided to slash rates by 25 bps for home loans availed before January 31, 2014.

In effect, starting Friday, SBI will charge 10.15 per cent interest. Women borrowers will get an additional discount of 5 bps.

HDFC will now charge 10.25 per cent for loans up to Rs 75 lakh. “HDFC has announced a special winter bonanza for its home loan customers effective Friday, December 20. This is a limited period offer and is valid for all new applications submitted before January 31, 2014, and first disbursement taken by February 28, 2014,” according to a statement by HDFC.

With this, both lenders abolished the Rs 30-lakh loan category. They now have only two categories, up to Rs 75 lakh and above.

“The revised EMI per lakh for a loan tenure of 30 years will be Rs 885 for women and Rs 889 for others against prevailing EMIs of Rs 900,” SBI said in a statement.

In October, SBI had reduced interest rates on loans for cars and consumer durables and also decided to lower processing charges to cash in on festival season demand.

HDFC also launched a festive season offer in October, when rates were lowered by 25 bps. The scheme ended on December 15. Under the scheme, for home loans up to Rs 25 lakh, HDFC charged 10.25 per cent for new customers. For loans between Rs 25 lakh and Rs 75 lakh, it charged 10.50
per cent.