SBI, HDFC offer mortgage loans at 6.7% interest rate. Know who can benefit


SBI, HDFC offer mortgage loans at 6.7% interest rate. Know who can benefit

New Delhi: Housing Development Finance Corp (HDFC) and the State Bank of India have reduced mortgage rates to make housing affordable for all.

HDFC has announced that it will offer interest rates on home loans starting at 6.7%. “We are pleased to announce the special mortgage rates for the upcoming holiday season,” said Renu Sud Karnad, Managing Director of HDFC Ltd.

Last week, the country’s leading lender launched a bunch of festive offers for mortgage customers. Like SBI’s HDFC home loan offer, it will apply to all new loan applications, regardless of loan amount or job category. The special rate is linked to the borrower’s credit rating of 800 and above.

The limited-term mortgage offer will be effective from September 20, the lender said. Interestingly, the mortgage loan interest rate will be set at 6.7 percent regardless of the loan amount. The special loan rate will be linked to the credit rating of the borrower.

“Housing is much more affordable today than it has ever been before. Over the past two years, house prices have more or less stayed the same in major pockets of the country as income levels have increased. Record interest rates, PMAY subsidies, and tax breaks have also helped, ”said HDFC CEO.

The reduction in the interest rate on home loans will be applicable until October 31. Customers can also apply for home loans online by visiting Customers can also apply for home loans online by visiting

To woo new homebuyers over the coming holiday season, several banks and lenders have already cut mortgage interest rates to a decades-high level.

6.7% SBI real estate loans
The State Bank of India (SBI) previously reduced mortgage interest rates to 6.7% for any loan amount. This is the first time that a bank has granted flat rate home loans, the lender said.

Previously, a borrower with a loan greater than Rs 75 lakh had to pay an interest rate of 7.15%. With the introduction of festive offers, a borrower can now qualify for a home loan for any amount at a rate as low as 6.70%. The offer results in a saving of 45 basis points, which translates into a huge interest savings of over Rs 8 lakh, for a loan of Rs 75 lakh with a term of 30 years.

SBI has removed this distinction between a salaried borrower and a non-salaried borrower. The interest rate applicable to a self-employed borrower was 15 basis points higher than the interest rate applicable to a salaried borrower. From now on, no interest premium linked to occupancy is charged to potential borrowers of mortgage loans. This would lead to a new interest saving of 15 basis points for non-salaried borrowers.

“This time, we have made the offers more inclusive and the offers are accessible to all segments of borrowers regardless of the amount of the loan and the profession of the borrower. The 6.70% mortgage offer is also applicable to cases of balance transfer. We believe that zero processing fees and concessional interest rates during the holiday season will make homeownership more affordable, ”said CS Setty, Managing Director (Retail & Digital Banking), SBI.

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