Save Big on Your Dream Home: Banks Introduce Limited-Time Interest Rate Discounts!
Banks and other financial institutions provide temporary relief from high interest rates at a time when the economy is feeling the effects of inflationary pressures. Rebates on house loans have been announced by organisations like Bank of Maharashtra (BOM) and Bank of Baroda (BOB). Such plans give the real estate sector, which is struggling due to high input prices, a much-needed boost. Continue reading to learn more about the most current home loan incentives.
During the Financial Year (FY) 2022–23, the Reserve Bank of India (RBI) increased the repo rate six times, adding a total of 250 basis points (bps), bringing it to the present level of 6.5 percent. By raising their lending rates, several banks and financial institutions have followed the top bank’s lead. This has automatically reduced the borrowers’ monthly income, deterring many would-be purchasers from taking out loans and making real estate investments.The next bimonthly monetary meeting is projected to see another repo rate increase of 25 basis points, which is expected to push up house loan rates even further.
However, a number of banks sometimes offered limited-time discounts by lowering their house loan interest rates, taking into account holidays and other special times of the year.Bank of Baroda (BOB), a state-owned institution, and Bank of Maharashtra (BOM) have once more offered some limited-time deals on their house loans. To learn more about it, keep reading.
Previously, as a part of the ‘Diwali Dhamaka’ scheme, BOM had decreased the interest rate on their home loans. Effective from October 17, 2022, home loans were offered from eight percent, as opposed to 8.3 percent. The bank also slashed personal loan interest rates from 11.35 percent to 8.9 percent in addition to waiving off the processing fee on their home, gold and car loans.
In an effort to offer competitive house loan rates, the Bank of Baroda (BOB) has lowered its home loan interest rates by 40 basis points to 8.5 percent annually. The promotion is valid from March 5 until March 31, 2023. The limited-time programme is available to new home loans, balance transfers, and home improvement loans and is based on the borrower’s credit score. The lending institution has also totally eliminated the processing fees for house loans throughout the time.
A similar offer from BOB had previously been made, with the house loan lending rates dropping by 25 basis points to 8.25 percent and the processing fees being abolished from November 11, 2022, to December 31, 2022. The special offer was tied to the borrower’s credit score and was valid on debt transfers.
Home loan discount from HDFC As part of their holiday programme, Housing Development Finance Corporation (HDFC) and HDFC Bank announced interest rates starting from 8.40 percent and valid through November 30, 2022. For the low interest rate, borrowers needed a credit score of at least 750. Since Bank of Baroda offered a refund, the borrowers are hoping that other banks would make similar announcements before this month’s repo rate rise.
Additionally, the State Bank of India (SBI) offered discounts on house loans, top-up loans, and loans secured by property of up to 0.25 percent, 0.15 percent, and 0.30 percent, respectively. SBI also disclosed new house loans and takeover loans with rates beginning at 8.40 percent, as well as loans for home restoration and makeover starting at 8.80 percent. Up to January 31, 2023, the bank will not charge a processing fee for residential loans.
The offers are a welcome action from the financing community to stop real estate and related businesses from facing another downturn following the epidemic. financing rates have been rising periodically to combat growing costs.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
