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SBI, Kotak Mahindra cut home loan rates

sbi

State Bank of India and Kotak Mahindra Bank have cut interest rates on home loans by up to 10 basis points.

SBI now offers home loans of up to Rs 75 lakh at 6.7 pc (to women salaried borrowers), the cheapest rate ever offered by the bank. It also continues to waive processing fees on all home loan applications.

Kotak Mahindra Bank said that it would offer home loans for rates starting at 6.65 per cent for both new purchases and balance transfers — also its lowest rate ever.

While Kotak’s rate is lower than SBI, it has a much smaller distribution footprint compared to the country’s largest bank and is a relatively smaller player in home loans.

“The earlier best rate was 6.8 pc, and now it is 6.7 pc. 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,” said Saloni Narayan, Deputy MD (retail business) at SBI.

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