After State Bank of India and Kotak Mahindra Bank, HDFC Bank has also reduced home loan interest rates.
The lender reduced rates by 5 basis points to 6.75 per cent. The changes will be effective from March 4, the bank said on Wednesday.
“HDFC reduces its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from March 4, 2021,” said HDFC Bank.
All existing HDFC retail home loan customers will benefit from this change, the lender said.
These concessional rates will be applicable only till March 31. SBI now offers the lowest home loan rates amongst banks, followed by Kotak Mahindra Bank which offers home loans starting at 6.75%.
Both ICICI Bank and HDFC Bank offer home loans at a starting range of 6.80%. SBI had said that it crossed the Rs 5 trillion mark for its home loan portfolio and Chairman Dinesh Khara is hopeful of doubling the portfolio in the next five years.
The lender is also giving a 100% waiver on processing fees. The interest concession is based on the loan amount and CIBIL score of the borrower.
SBI believes that it is important to extend better rates to customers who maintain good repayment history.