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SBI, BoB, Kotak Bank's Festive Bonanza For Loan Seekers As They Offer Record Low Rates
The offers are aimed to make home loans and car loans more affordable in the festive season.
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Amid the festival season, the State Bank of India (SBI), Bank of Baroda (BoB), announced a bouquet of festive offers with record low interest rates on loans. The offers are aimed to make home loans and car loans more affordable in the festive season.
SBI Festive Bonanza for Home Buyers:
In a first-of-its-kind initiative, SBI offers credit score linked home loans at just 6.70 per cent, irrespective of the loan amount.
"Earlier a borrower availing a loan greater than Rs. 75 lac, had to pay an interest rate of 7.15 per cent. With the introduction of the festive offers, a borrower can now avail home loan for any amount at a rate as low as 6.70 per cent. The offer results in a saving of 45 bps which translates to a huge interest saving of more than Rs. 8 lac, for an Rs. 75 lac loan with a 30-year tenure," SBI said in a statement.
Further, the rate of interest applicable for a non-salaried borrower was 15 bps higher than the interest rate applicable to a salaried borrower.
"SBI has removed this distinction between a salaried and a non-salaried borrower. Now, there is no occupation-linked interest premium being charged to prospective home loan borrowers. This would lead to a further interest saving of 15 bps to non-salaried borrowers," the statement further read.
To welcome the festivities and boost the market sentiments, the lender has waived off the processing fees completely and offers attractive interest concessions based on the credit score of the borrower.
C.S. Setty, Managing Director (Retail and Digital Banking), SBI said, "We are pleased to launch the festive offer for our prospective home loan customers. Generally, the concessional interest rates are applicable for a loan up to a certain limit and are also linked to the profession of the borrower. This time, we have made the offers more inclusive and the offers are available to all segments of borrowers irrespective of the loan amount and the profession of the borrower. The 6.70 per cent home loan offer is also applicable to balance transfer cases. We believe zero processing fees and concessional interest rates in the festive season will make homeownership more affordable. Our country has shown tremendous resilience during the pandemic. Being the Banker to every Indian, we are committed to doing our bit in reviving the economy by enabling housing for all."
Kotak Mahindra Bank Loan Interest Rate:
Ahead of the festival season, Kotak Mahindra Bank is providing a 6.5 per cent per annum interest rate for its customers.
The Bank took to its official Twitter handle and wrote, "We are serious! Kotak Home Loans starting at surprisingly low-interest rates of 6.5 per cent* p.a! Now get your dream home in reality. Hurry! Offer valid from 10-Sep to 8-Nov-21."
"It’s bigger, luxurious, more spacious, and looks amazing! No, it’s not a phone, it’s your new home. Kotak Home Loans starting at surprisingly low-interest rates of 6.5 per cent p.a! Now get your dream home, in reality," it further tweeted.
BoB offering on Home loan and Car Loan:
Another Indian Public Sector Bank (PSB), the Bank of Baroda, announced retail loan offers. The offer will be applicable for Home Loan and Car Loan products,
The Bank is offering a waiver of 0.25 per cent in the existing applicable rates for Baroda Home Loans and Baroda Car Loans across the board.
In addition, Bank is also offering a waiver of processing fee in Home loans. Now home loan rates start at 6.75 per cent and Car loan rates start at 7.00 per cent.
H.T. Solanki, GM, Mortgages and Other retail assets, Bank of Baroda said, "With the introduction of these retail loan offers for this festive season, we intend to bring festive cheer among our existing loyal customers and also offer new to bank customers an attractive proposition for availing home loans and car loans who will be benefited from lower rates and waiver of processing fee on offer."