Diwali bonanza: HDFC, SBI, Bank of Maharashtra slash home loan rates for new, existing customers

Prominent home loan lenders HDFC, SBI, Bank of Maharashtra have slashed their home loan rates ahead of the festive season in a bid to attract more customers.  

Country’s largest lender State Bank of India has slashed the interest rate by 0.25 per cent. The base interest rate at present is 8.40 per cent. 

On top-up loans, the bank has slashed the rates by 0.15 per cent. For loan against property, the lender is offering a cut of 0.30 per cent in interest rates. Besides, it has also waived off the processing fee on home loans till January 2023. The concession will also be applicable for customers who want to transfer their existing home loans from other banks and finance companies. 

Bank of Maharashtra also cut its home loan interest rates by 30-70 basis points. The current base rate for home loans is 8 per cent per annum rate. 

Private mortgage lender HDFC Bank, on the other hand, is offering a standard rate of interest of 8.4 per cent on home loans to all customers with a credit score of 750 and above. Here, the bank is also not considering the amount, and the offer is valid till November 30, 2022.  

Before this, the bank was offering rate in the range of 8.60 and 9 per cent, depending on the amount and credit score of the customer. 

As part of its Diwali special offer, Bajaj Housing Finance Limited has also slashed its home loan interest rate to 8.2 per cent per year for salaried and professional. The wholly owned subsidiary of Bajaj Finance Limited will be offering this festive special offer from October 14 to November 30 and is only applicable at select locations. 

The festive period around Navratri and Diwali is considered to be auspicious. Customers generally buy gold, silver, and even homes and cars to celebrate prosperity in life. Lenders across the country are offering attractive deals with many lucrative offers to attract the customers despite Reserve Bank of India’s repo rate hike. Generally, when the central bank revises its repo rates, banks and finance companies tweak their interest rates.