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SBI, HDFC offer home loans at 8.40% as part of festive sales

By on October 12, 2022 0

Mumbai: Despite rising interest rates, major mortgage players SBI and HDFC announced cut interest rates starting at 8.40% as part of their festive offers.

SBI, in a statement, said its home loan portfolio had surpassed the Rs 6 lakh crore mark, an industry first. The main lender said it was offering up to 25 basis points off the interest rate to new home loan borrowers, bringing the entry rate to 8.40% and the offer will continue until January 31, 2023.

The largest pure mortgage player HDFC, which is awaiting its merger with its banking subsidiary HDFC Bank, said it was also offering reduced interest rates to new borrowers of up to 20 basis points or 8.40%.

According to the HDFC website, the festive offer is valid until November 30 and the low rate will be applicable to borrowers who have a minimum credit score of 750.

Major banks and mortgage lenders raised lending rates by up to 0.50 percentage points after the Reserve Bank of India last raised its repo rate by 50 basis points to rein in inflation.

The State Bank of India did not provide details such as credit score requirements or loan amount to qualify for the lower rates. He added that the festive offer also includes processing fee waivers, balance transfers/takeovers and top-up loans.

The bank had crossed the Rs 5 lakh crore-mark home loan barrier in January 2021.

The SBI said that if new lending is 0.25 percentage points lower than its current rates, new top-up loans will be 0.15 percentage points cheaper and home loans will be 0.30 percentage points cheaper. percentage. None of these offers will have a processing fee.

Commenting on this milestone, Chairman Dinesh Khara said that SBI has over 28 lakh home loan customers.

Alok Kumar Choudhary, managing director of retail banking and operations, said the interest rate for new loan buyers and loan buyouts starts at 8.40% and top-up loans start at 8.80. %.

Meanwhile, HDFC told PTI that its retail housing loan portfolio stood at Rs 5,363 lakh crore in the June quarter and its developer loan portfolio at Rs 1,351 lakh crore, bringing the overall AUM to Rs 6,714 lakh crore. The mortgage lender has yet to release second quarter numbers.

Earlier in the month, HDFC said it sold individual loans worth Rs 34,513 crore in the second quarter from Rs 27,199 crore, narrowing its gap with SBI to around Rs 29,187 crore.