HDFC launches festive offer, home loan at 6.7 pc

Last week, SBI as part of the festival bonanza offered a concessional home loan rate of 6.70 percent under its festive offer. This was followed by other lenders like Punjab National Bank and Bank of Baroda.

''Housing is much more affordable today than it ever was. In the last couple of years, property prices have more or less remained the same in major pockets across the country while income levels have gone up,'' said Renu Sud Karnad, managing director, HDFC Ltd. Record low-interest rates, subsidies under PMAY and the tax benefits have also helped, she said.

Under the festive scheme, HDFC said, ''Customers can avail HDFC Home Loan starting at 6.70 percent per annum effective September 20, 2021. This offer will apply to all new loan applications irrespective of the loan amount or employment category,'' HDFC said in a statement. The special festive offer at 6.70 percent is for all loan slabs and all customers with a credit score of 800 and above.

Before this special offer, the rate for salaried customers for loans above Rs 75 lakh and credit score of 800 and above was 7.15 percent and for self-employed was 7.30 percent.

Hence, effective cuts for these customers could be up to 45 bps for salaried and up to 60 bps for self-employed.

The special rate is linked to the borrower's credit score, it said, adding that this is a close-ended scheme and will be valid till October 31.