HDFC Follows SBI, PNB & BOB; Slashes Home Loan Interest Rates

Updated on: 14 Dec 2021 // 15 min read // Home Loans
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It’s pouring home loan offers in India!! Ahead of festival season, HDFC Ltd has slashed its lowest home loan interest rate to 6.70% p.a. Earlier this week, leading banks like Kotak Mahindra, State Bank of India, PNB & Bank of Baroda also slashed home loan interest rates.

Both new home loan customers and balance transfer customers have ample choice to choose home loan interest rates starting from 6.50% p.a today. The customers can use the Home Loan EMI Calculator and lock the best EMI plan for fulfilling their housing dream.

Top Home Loan Interest Rates - Festival Offers 2021

Bank/ HFCLowest Home Loan Interest RateProcessing Fee
Kotak Mahindra Bank6.50%Offer available
SBI6.70%Waived off
PNB6.60%Waived off
BOB6.75%Waived off
HDFC Ltd6.70%Flat processing offer

HDFC Festival Offer for Home Loans

Housing Development Finance Corporation Limited in the press release said: Customers can avail HDFC Home Loan starting at 6.70 per cent per annum effective September 20, 2021. This offer will be applicable to all new loan applications irrespective of the loan amount or employment category.

Following SBI, HDFC too announced an all-inclusive home loan interest rate waiver to the new customers. The HDFC Ltd festive offer starting at 6.70 % is open to borrowers with all loan slabs & having credit score of 800 & above.

In effect, the new HDFC rate cut will lead to saving of 45 bps for salaried & up to 60 bps for self-employed applicants. The offer is valid till end of October this year. Prior the scheme, salaried customers could avail the best rate of 7.15% p.a., while the self-employed could only get best rate of 7.30 per cent, for loans above Rs 75 lakh & credit score of 800.

PNB Festival Bonanza on Home Loans

A day after SBI announced its festival offer, another leading public sector lender Punjab National Bank revealed its festive offers for home loan customers. PNB Home Loans now start at 6.60 % irrespective of any upper limit on home loan amount. The rate offer will be linked to the applicant's credit score said the lender.

With inclusion of all types of customers latest top housing loan scheme, the customers applying for loans above Rs 50 Lakh will enjoy the rate cut by 50 bps. Both salaried and self-employed borrowers can avail of the latest PNB offer.

Besides, PNB has also announced a full waiver of service charges/ processing fees on home loans, vehicle loans, personal loans, pension loans, MyProperty loan and gold loans. The bank added in the release: Home loan ownership will become more affordable to the public in view of this offer of a full waiver of service charges and a low interest rate starting from 6.60%.

Bank of Baroda Home Loan Offer

Bank of Baroda also announced its festival offer and shared new home loan and car loan interest rates with a 0.25 per cent waiver in the existing applicable rates. 

With the BOB festival offer in place, Baroda Home Loans and Baroda Car Loans will now start from 6.75% p.a. and 7% p.a. respectively. Following footsteps of SBI, the BOB too has removed processing fee on home loans currently.

Adding festive cheer to customers the BOB assured faster loan processing for digital customers. 

State Bank of India Cuts Home Loan Interest rates

Earlier this week State Bank of India had also announced open interest rate cut on home loans. SBI home loans linked to credit score now start at 6.7% p.a., irrespective of the loan amount and customer profile, said the bank. 

The bank added in the press statement: The offer results in a saving of 45 bps which translates to a huge interest saving of more than Rs. 8 lac, for a Rs. 75 lac loan with a 30 year tenure.

Read more: SBI Cuts Home Loan Interest Rates to 6.70%, Waives Processing Fees

Kotak Mahindra Bank slashes home loan rates

Kotak Mahindra Bank was the first one to announce rate cut in home loan interest rates ahead of festival season 2021. Kotak Home Loans now start from 6.50% p.a for all profiles and loan amounts. The offer is valid from September 10, 2021 to November 8, 2021.

“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," the bank said in its press statement.

Read More: Kotak Mahindra Bank Slashes Home Loan Interest Rates to 6.5% for next 60 days

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