In a bid to capitalise on the customer’s spending spree due to the festive season, several banks such as State Bank of India (SBI), Kotak Mahindra Bank and Bank of Baroda (BoB) are offering loans at record low interest.
State Bank of India
SBI on Thursday said it will charge home loan borrowers an interest of 6.7% based on their credit score, irrespective of the loan amount. This is part of the bank’s offers during the festive season to nudge demand and push credit growth. At present, borrowers with home loans over â¹75 lakh had to pay an interest rate of 7.15%, while others paid less.
“We are pleased to launch the festive offer for our prospective home loan customers. Generally, the concessional interest rates are applicable for a loan up to a certain limit and are also linked to the profession of the borrower. This time, we have made the offers more inclusive and the offers are available to all segments of borrowers irrespective of the loan amount and the profession of the borrower. The 6.70% home loan offer is also applicable to balance transfer cases,” C.S. Setty, Managing Director (Retail & Digital Banking), SBI, was quoated Mint as saying.
Kotak Mahindra Bank
The lender has reduced its home loan interest rates by 15 basis points (bps) from 6.65% to 6.50% p.a starting tomorrow. This special rate of 6.50% p.a. is a limited period festive season offer beginning 10th September and ending 8th November 2021.
In a statement the bank said, “Rates for both fresh home loans and balance transfers now start at 6.50% p.a., offering the best value to home buyers. This special rate is available across all loans amounts and is linked to a borrower’s credit profile.”
Bank of Baroda
The Bank announced loan offers under which it has waived home and car loan rates. As per the revised rates, the lender is offering a waiver of @0.25% in the existing applicable rates for home and car loans. In addition to that, the bank is also offering a waiver of processing fees in home loans. Now, home loan rates will start at 6.75% and car loan rates start at 7.00%.
