HDFC, SBI, Kotak, Union Bank; Know Who Offers Cheapest Interest Rate

As the real estate market in India is witnessing an uptick in the activity which is being reflected in the housing sales and registration of properties, home loans are what homebuyers look at for finances while buying a new residential unit. Home loan interest rates may vary based on the risk profile of the borrower, gender and the amount of loan sought. These may also vary from bank to bank. Here’re the interest rates offered by various lenders, including HDFC, State Bank of India (SBI), Union Bank of India and Kotak Mahindra Bank:

India’s largest mortgage lender HDFC, which is being merged with HDFC Bank, offers home loans at an interest rate range of 7.15-8.05. The rate variation depends upon the risk profile of borrowers like CIBIL score, gender and the amount of loan. If you have an excellent CIBIL score, you will get a cheaper interest rate as compared to those with lower scores. Also, the higher the amount of the loan, the higher the interest rates.

These home loan interest rates are applicable for loans under the adjustable rate home loan scheme of HDFC and are subject to change at the time of disbursement.

The country’s largest lender State Bank of India (SBI) offers 7-7.6 per cent interest rates on home loans. Apart from gender, the bank also has separate interest rates for ready-to-move-in properties.

Union Bank of India is currently offering an interest rate in the range of 6.9-8.6 per cent, depending upon salaried and non-salaried borrowers apart from gender. Private sector lender Kotak Mahindra Bank is offering 6.55-7.6 per cent interest rates on home loans. Apart from these interest rates, the lender also charges GST and processing fees, which may be at around 0.5 per cent.

As the RBI has raised the key policy rates to control high inflation rate,  lender have recently raised their interest rate for both deposits and loans.

Real Estate Market Recovers

According to a report by real estate consulting firm CBRE South Asia, housing sales in the March 2022 quarter jumped nearly 13 per cent quarter-on-quarter to over 70,000 units and sales rebounded significantly by about 40 per cent year-on-year.

“The affordable/ budget segment’s share in sales remained stable at 27 per cent in Q1 2022 vis-à-vis Q4 2021. While sales in the high-end category jumped to 23 per cent in Q1 2022 as against 16 per cent in Q4 2022, those in the mid-end segment dropped to 41 per cent in this quarter. The premium and luxury housing segments also witnessed a slight uptick in sales on a Q-o-Q basis,” the report said.

India Ratings has said the momentum is expected to continue in 2022-23 on the back of strong demand, and housing sales may jump around 12 per cent year-on-year in the current financial year.

According to a report by real estate consultant Knight Frank India, the country’s major city Mumbai saw a 78 per cent jump in property sale registrations during May to 9,523 units, which is the best in a decade. It contributed over Rs 709 crore to the state revenues, according to the report. Half of the registrations were in the price range of Rs 1 crore and above, while the apartment size ranged between 500-1,000 square feet was the most preferred among buyers.

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