After State Bank of India (SBI) and Kotak Mahindra Bank, now HDFC (Housing Development Corporation Limited) has also reduced home loan interest rates. The bank announced a cut of 5 basis points in its Retail Prime Lending Rate (RPLR) in a filing given to the stock exchange on Wednesday. In the filing, HDFC said it is cutting the retail prime lending rate on housing loans by 5 basis points (0.05 per cent) and the decision will be effective from March 4, 2021.
According to the information provided in the filing, the benefit of this change will be given to all the existing HDFC Retail Home Loan customers. With this decision, the rate of home loan in HDFC has been reduced to a minimum of 6.75 percent. The SBI and Kotak Mahindra Bank cuts in home loan rates are under an offer for some time while HDFC has not fixed any timeline yet.
Cheapest home loan in Kotak Mahindra Bank
Kotak Mahindra Bank, the leading private sector bank, has reduced the interest rates of loans from 1 March. Kotak Bank has cut home loan interest rates by 10 basis points (bps). After this deduction, the interest rate of home loan has come down to 6.65 percent. Kotak Bank claims that this offer is the cheapest in the home loan market. This special offer of the bank is applicable till 31 March 2021.
SBI has also reduced the home loan interest rate
The country’s largest bank SBI has also reduced home loan interest rates. On March 1, SBI announced a special offer to give customers a discount on home loan interest rate up to 70 basis points, under which the interest rate of home loan starts from 6.70 percent. This is the record taken so far. SBI has also waived the processing fee on the home loan till 31 March. SBI says that customers whose repayment history is better, will get the benefit.