SBI, Kotak cut home loan rates to new lows
PSU Bank Offers?75L For 6.7% To Salaried Women, Kotak
Reduces To 6.65%
In a bid to grab as many home loan customers as possible before the fiscal year ends, SBI and Kotak Mahindra Bank have sweetened their offer in this segment by cutting interest rates by up to 10 basis points (100bps = 1 percentage point).
SBI now offers home loans of up to Rs 75 lakh for 6.7% (to women salaried borrowers) — the cheapest rate ever offered by the bank. SBI also continues to waive processing fees on all home loan applications. Kotak Bank said that it would offer home loans for rates starting at 6.65% for both new purchases and balance transfers — also its lowest rate ever.
Home loans are the only drivers of credit growth for banks and lenders are expecting a jump in the last month as some of the schemes offered by state authorities, such as relaxation on stamp duty, end in March. While Kotak Bank’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.
“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 SBI deputy MD (retail business) Saloni Narayan. “A person with a credit score of 775 will get home loans at 6.8%. If they source the loan through Yono, there is a further 5bps discount. If the borrower is a woman, the rate will be a further 5bps lower at 6.7%,” she said. These rates are applicable to salaried borrowers, and there is a small premium for non-salaried borrowers.