Major banks’ interest rate cuts could speed up home sales this holiday season
Several banks like the State Bank of India (SBI), Kotak Mahindra, Bank of Baroda (BoB) and Punjab National Bank (PNB) are offering loans at record interest rates to cash in on the spending rush before the holiday season. year.
The State Bank of India (SBI) will charge mortgage borrowers 6.7% interest based on their credit rating regardless of the loan amount. The offers are accessible to all segments of borrowers regardless of the profession of the borrower. The 6.70% mortgage offer is also applicable to cases of balance transfer.
Kotak Mahindra Bank cut interest rates on home loans by 15 basis points (bps) from 6.65% to 6.50% per annum.
Bank of Baroda (BoB) offers a 0.25% exemption from existing applicable rates for home and auto loans. In addition to this, the bank also offers a mortgage processing fee waiver. From now on, mortgage rates will start at 6.75% and auto loan rates will start at 7.00%.
The Punjab National Bank (PNB) also lowered the pension-based lending rate from 25 basis points (bps) to 6.55%. Real estate experts believe these interest rate cuts could be a major factor in boosting home sales this holiday season.
Pritam Chivukula – Co-Founder and Director, Tridhaatu Realty and Hon. Secretary CREDAI-MCHI said: âThe reduction in mortgage interest rates by major banks for a limited period has extended the best buying opportunity for home buyers. mortgage rates are at an all-time low in 15 years as banks compete in a market with low demand for credit. The favorable interest rate environment will continue for some time and interest rates are unlikely to fall further from current levels. In the coming days, buyers will be able to fall for good deals thanks to the lowest interest rates on mortgage loans and festive offers from good developers on the eve of the expected rise in prices. has picked up now that people are starting to believe this is the best time to buy a property. “
Ashok Mohanani – NAREDCO Maharashtra Chairman said, âThere is already a growing desire to own a home as consumers see it as a necessity in this unprecedented time of the COVID-19 pandemic. With the start of the holiday season, there is fierce competition among financial institutions to offer consumers the best interest rates for home loans. low interest rates over time. These factors are also proving to help stimulate real estate demand which was temporarily affected last year due to the pandemic. “
Jayesh Rathod, Executive Director of The Guardians Real Estate Advisory, said: âThe decision to cut interest rates by a few banks is encouraging and will create competitive housing finance options for homebuyers and eventually pave the way for robust housing demand. We have long maintained that banks need to pass the benefits of lower repo rates onto consumers and we are happy to see the same happening now. The low interest rate regime will be a game-changer for the entire real estate industry, especially at some point when the economy is on the road to recovery. It will also bode well for the ready-to-move-in homes and the affordable housing segment. Both of these categories will benefit greatly from the reduced rates. From a consumer perspective, this is going to be the last call to take advantage of the bank’s offers, as a difference of even half a percentage on the interest rate on a home loan can save buyers thousands of rupees. potentials. “
Cherag Ramakrishnan, Managing Director of CR Realty, said: âE rates would further help maintain sales momentum. “
Bhushan Nemlekar, Director of Sumit Woods Limited, says: âThe reduction in mortgage rates by the major banks will help demand enormously. The real estate sector has benefited enormously from record mortgage rates. low interest rates of less than 7% encourage consumers to purchase and complete transactions quickly. Low interest rates also help improve homebuyer eligibility, which in turn attracts more customers to the market. “