HDFC launches festive offer; cuts home loan interest rate to 6.7%

 The Housing Development Finance Corporation (HDFC) has joined the Christmas season home loan interest rate war by slashing rates by 45-60 basis points (bps) for borrowers with credit scores of 800 or higher on loans exceeding Rs 75 lakh.

The discount will be valid through the end of October. In an effort to increase their home loan business, two public sector lenders, State Bank of India and Bank of Baroda (BoB), reduced rates by 25-45 basis points last week.

Customers can get new house loans starting at 6.70 percent per year from HDFC, the country's largest housing finance provider, regardless of loan amount or work status. The relief is 45 basis points for salaried workers and 60 basis points for self-employed workers.

Property prices have remained relatively unchanged in key areas across the country over the last few years, although income levels have climbed. Renu Sud Karnad, managing director of HDFC, stated that record low borrowing rates, subsidies under the Prime Minister Awas Yojana, and tax incentives have all helped.

The market will be buoyed with cheaper credit available across all categories of residential buyer, according to Samantak Das, chief economist and head of research & REIS, JLL India. Because this reduction is linked to credit scores and applies regardless of amount or employment category, the market will be buoyed.

Banks' home loan book expanded by 8.9% year on year to Rs 14.66 trillion in July, according to figures from the Reserve Bank of India.

In June, HDFC's assets under management increased to Rs 5.74 trillion, up from Rs 5.31 trillion a year earlier.

Improved affordability due to rising disposable incomes and the lowest-ever interest rates on home loans are among the reasons fuelling demand for homes and loans to buy them.

Analysts said though the current offer is limited till end of October, lenders including HDFC could extend it into the fourth quarter, depending on economic growth and the RBI’s stance on interest rates. Other drivers include tax incentives on interest and principal amount for home loan borrowers and interest rate subsidy for the economically weaker sections and low income groups.

India’s favourable demographics, with 66 per cent of the population below 35 years of age, ensures a large potential for home loans. Analysts also project that rapid urbanisation is set to continue and expect the population of those residing in cities to rise from the current 32 per cent to 50 per cent by 2030.

Conclusion

There's no need to be discouraged if your personal loan application is turned down. To boost your chances of loan approval, simply work on improving your credit report and following the methods outlined above. Once you've completed this checklist, you're ready to submit your personal loan application.To find about the best pricing and deals, call our toll-free number +91-9477079053. They'll help you in every way they can. Please contact me at Best Home Loan In India if you have any more. 

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