Home Loan Interest Rates: PNB is offering housing loan at an interest rate at 6.60 per cent. The bank is also offering 100 per cent waiver on upfront or processing fess and documentation charges.
The prevalent low interest rates on home loan are largely due to the Reserve Bank of India's (RBI) approach to continue with the status quo on key policy rates.
New Delhi: Home Loan interest rates continue to go down during the ongoing festive season in the country. Popular lenders such as State Bank of India (SBI), Punjab National Bank (PNB), Canara Bank, Bank of Baroda, and ICICI Bank are offering lucrative offers on interest rates and processing fee on home loan. For common home buyers, these offers will help reinstate confidence and further access to affordable housing loans.
Why Housing Loan Rates are Falling?
The prevalent low interest rates on home loan are largely due to the Reserve Bank of India’s (RBI) approach to continue with the status quo on key policy rates.
In its latest “Bi-monthly Monetary Policy Statement” in October, India’s central bank kept the repo and reverse repo rates unchanged at 4 per cent and 3.35 per cent respectively.
However, even without a cut in policy rates, home loan interest rates have remained affordable. Moreover, RBI’s decision came at an opportune time when the country was gearing up for the festive season which often sees a spurt in residential sales.
“Home loan interest rates have already gone down substantially in the recent past, and are presently at an all-time low and property prices have been stable. Hence this is the right time for prospective home buyers to invest. Homebuyers will continue to take advantage of the lowest ever home loan interest rates,” Ramani Sastri, Chairman & MD, Sterling Developers Pvt. Ltd, said.
The move to reduce interest rates by few banks recently is encouraging and will pave path for robust housing demand further. We are seeing a lot of first time home buyers, who were not able to reach a decision in the previous quarters due to the lockdown are eager to conclude the deal now, Ramani Sastri explained.
Home Loan Interest Rates SBI, Other Banks
ICICI Bank has announced the launch of ‘Home Utsav’, a digital property exhibition that showcases over 350 projects by more than 200 leading developers across 12 cities such as Mumbai MMR, Delhi-NCR, Hyderabad, Bengaluru, Chennai, Kolkata, Ahmedabad, Pune, Nashik, Vadodara, Surat and Jaipur.
The exhibition will go on till end of December 2021. The ICICI Bank exhibition offers attractive home loan interest rates starting from 6.70 per cent and special processing fees, the private lender said in a statement.
Bank of Baroda is offering home loan at an interest rate of 6.50 per cent per annum.
Canara Bank is offering loan for purchase, construction, extension, repair, renovation of house at 6.90 per cent per annum.
PNB is offering home loan at an interest rate at 6.60 per cent. The bank is also offering 100 per cent waiver on upfront or processing fess and documentation charges.
Last month, SBI had launched credit score-linked home loans at 6.70 per cent, irrespective of the amount. Prior to the festive offer, a borrower availing a loan greater than Rs 75 lakh had to pay an interest rate of 7.15 per cent, as per an IANS report.
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