HDFC Cuts Home Loan Rates For Festive Period

Housing Development Finance Corp. cut home loan rates for the festive period, joining other lenders in aiding demand.

Customers can avail loans starting from 6.7% between Sept. 20 and Oct. 31, the home financier said in a statement. Till now, HDFC charged an annual interest rate ranging between 6.75% and 8%, depending on the customer’s quality.

“This offer will be applicable to all new loan applications irrespective of the loan amount or employment category. The special rate is linked to borrower’s credit score,” the statement said.

Most major lenders have reduced home loan rates to historic lows to tap into the festive season demand.

Last week, State Bank of India announced that it would offer home loans at 6.7%. Bank of Baroda, too, lowered home and auto loan rates by 0.25%. Earlier during the month, Kotak Mahindra Bank Ltd. kicked off the festive season offers by lowering home loan rates to 6.5%, the lowest in the industry.

Home loan rates have dropped owing to ample liquidity, low policy rates and a clamour by banks to gain share in the mortgage market.