The Housing Development Finance Corporation (HDFC) on Wednesday announced a reduction of 0.05 per cent in its Retail Prime Lending Rate (RPLR) on home loans. In a briefing to the stock exchanges, HDFC said, “HDFC has cut its retail principal lending rate on housing loans at which Adjustable Rate Home Loans (ARHL) is the benchmark by five basis points, will be effective from March 4, 2021.” After this fresh cut in the rate, HDFC’s RPLR will be 16.05 per cent from March 4, ie Thursday.
Just a few days before HDFC’s announcement of a fall in home loan rates, banks such as State Bank of India (SBI) and Kotak Mahindra Bank announced a rate cut. However, SBI and Kotak Mahindra Bank’s reduced home loan rates are available for a limited period.
SBI on Monday announced a further increase in the pre-release discount on the interest rate on home loans. The bank raised the interest subvention limit on home loans to 0.70 per cent. In this way, the bank is now offering home loans at 6.70 per cent. This offer is till 31 March 2021. The bank is also giving a 100 percent discount on processing fees.
The interest rate on SBI Home Loan is linked to the CIBIL score. The bank is offering loans up to Rs 75 lakh at an interest rate of 6.70 per cent. At the same time, the bank is offering an interest rate of 6.75 percent for loans above 75 lakhs.
At the same time, Kotak Mahindra Bank on Monday announced a limited period reduction of 0.10 per cent in its home loan rates. The bank said in a statement that after the rate cut, as a special offer, customers will be able to take home loan till March 31 at a 6.65 percent interest rate.