Big Loan Companies Reduce Their Home Loan Interest Rates
Apr 14, 2017 Home Loan
Reduction in interest rates of home loans has come as a big relief to the buyers who are looking forward to taking the home loan to buy their dream house. Last week country’s three biggest home loan lenders slashed their interest rates providing relief to the home loan lenders.
State bank of India (SBI) reduced their interest rate by 15 basis points, which is lowest in last six years. For loans up to Rs 75 lacs, to be sanctioned in November and December, SBI is now offering home loans at the rate of 9.15 percent which was 9.3 percent before.
Following the suit of loan reduction, ICICI bank and HDFC joined the bandwagon. They are offering the reduced home loans at the rate of 9.2 percent for a loan up to Rs 75 lacs, which was earlier 9.35 percent. For the loan beyond 75 lacs, the revised interest rate is 9.24 percent for women borrowers and 9.3 percent for other. All the three companies are offering loan to women borrowers at 5 bps lower interest rate. These offers are valid up to 30th November.
All the loan borrowers who are thinking of switching the loan lender, this might be a good time for them to switch it. Other lenders are also expected to join the bandwagon of low home loan interest rates.
ICICI bank has recently launched the ‘Home Overdraft Facility’ for the salaried customers. This has come as an advantage to the borrowers by providing long term loans and an overdraft facility to meet the required expense. The long term loan helps the customer in owning the property while the overdraft can help the customer in meeting the expenses. The borrower can avail the minimum of 10 percent of the total loan amount to the 90 percent of the maximum overdraft facility.
State bank of Baroda has also reduced the marginal cost of the fund (MCLR) by 10 basis points, across different tenor which came into effect on November 7. The rate of interest for:
5 years will be 9.45 percent which was 9.55 percent earlier.
For three year and one year tenor, it will be 9.25 percent.
For six months, it will now be 9.20 percent.
For three months, it will be 9.15 percent
Overnight rate is now 9.0 percent.
MCLR replaces the old base rate to the new benchmark lending rates for the new borrowers. It is calculated by the marginal costs of borrowing and return on the net worth of the banks.
State bank of India (SBI) reduced their interest rate by 15 basis points, which is lowest in last six years. For loans up to Rs 75 lacs, to be sanctioned in November and December, SBI is now offering home loans at the rate of 9.15 percent which was 9.3 percent before.
Following the suit of loan reduction, ICICI bank and HDFC joined the bandwagon. They are offering the reduced home loans at the rate of 9.2 percent for a loan up to Rs 75 lacs, which was earlier 9.35 percent. For the loan beyond 75 lacs, the revised interest rate is 9.24 percent for women borrowers and 9.3 percent for other. All the three companies are offering loan to women borrowers at 5 bps lower interest rate. These offers are valid up to 30th November.
All the loan borrowers who are thinking of switching the loan lender, this might be a good time for them to switch it. Other lenders are also expected to join the bandwagon of low home loan interest rates.
ICICI bank has recently launched the ‘Home Overdraft Facility’ for the salaried customers. This has come as an advantage to the borrowers by providing long term loans and an overdraft facility to meet the required expense. The long term loan helps the customer in owning the property while the overdraft can help the customer in meeting the expenses. The borrower can avail the minimum of 10 percent of the total loan amount to the 90 percent of the maximum overdraft facility.
State bank of Baroda has also reduced the marginal cost of the fund (MCLR) by 10 basis points, across different tenor which came into effect on November 7. The rate of interest for:
5 years will be 9.45 percent which was 9.55 percent earlier.
For three year and one year tenor, it will be 9.25 percent.
For six months, it will now be 9.20 percent.
For three months, it will be 9.15 percent
Overnight rate is now 9.0 percent.
MCLR replaces the old base rate to the new benchmark lending rates for the new borrowers. It is calculated by the marginal costs of borrowing and return on the net worth of the banks.
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