SBI, HDFC cut home loan rates

In a bid to increase loan portfolios, the largest public sector bank, State Bank of India (SBI) and housing finance major Housing Development Finance Corporation (HDFC), on Thursday, reduced the home loan rates with effect from December 20.

“The interest rate on home loans has been reduced significantly, and a separate interest rate structure has been rolled-out for our woman home loan borrowers,” SBI said in a statement.

The slab for the lower interest has also been raised from Rs.30 lakh to Rs.75 lakh and now a uniform interest rate on home loans up to Rs.75 lakh is being offered to SBI’s customers. “The revised interest rates on our home loans will be with effect from December 20,” the statement adds. The revised loan structure of SBI would be: up to Rs.75 lakh, the interest rate will be 10.10 per cent annually for women customers and 10.15 per cent annually for others. For loans above Rs.75 lakh, the interest rate will be 10.25 per cent annually for women customers and 10.30 per cent annually for others.

Loan rates for women applicants will be available “where the woman is the sole applicant or first co-applicant and also the sole or first co-owner of the property,” the statement adds.

According to SBI statement, the revised EMI per lakh for a loan tenure of 30 years will be Rs.885 for women and Rs.889 for others against the prevailing EMI of Rs.900.

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Meanwhile, HDFC has announced a special ‘winter bonanza’ for its home loan customers effective Friday. “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,” HDFC release says.

“The new rates for home loans up to Rs.75 lakh will be 10.25 per cent per annum,” HDFC statement adds.

The markets were expecting a hike in indicative policy rates when the Reserve Bank of India (RBI) reviewed its monetary policy on Wednesday, in the light of high inflation rates. However, the central bank preferred not to hike the rates and it kept the repo rate and Cash Reserve Ratio unchanged at the current levels.