On March 1, Kotak Mahindra Bank lowered its home loan interest rate by another ten basis points (bps), taking it to 6.65 percent per annum, the cheapest in the segment. The bank stated in a release that this is a discounted rate that will be in place until March 31, 2021, and that it will extend on all loan accounts. The interest rates, according to the private lender, are calculated by the borrowers' credit rating and the Loan to Value (LTV) ratio. The rates would extend to both salaried and self-employed employees, according to the bank. The announcement comes just hours after the State Bank of India (SBI) cut home loan rates to 6.70 percent until March 31, according to a statement from the bank. The lender is also waiving the processing fees, according to the release.
The interest discount is determined by the loan amount and the borrower's CIBIL ranking. SBI claims it is essential to provide cheaper rates to borrowers who have a strong repayment background, according to the bank. As the industry leader in home financing, SBI takes credit for strengthening customers' loyalty. With the new offerings, the consumer's attractiveness improves dramatically because the EMI is reduced, according to the bank. The bank said that SBI Home loan interest rates are related to CIBIL score and begins at 6.70 percent for loans up to Rs. 75 lakh and 6.75 percent for loans above Rs. 75 lakh. Customers can now also get an additional interest deduction of 5 basis points by applying for a loan from the convenience of their home or workplace via the YONO App. Women borrowers can earn a special 5 basis point discount on the occasion of International Women's Day, according to the bank. According to the bank, SBI has a 34 percent market lead in home loans and a 33 percent profitability in auto loans.