A look at banks and institutions that have cut their home lending rates

By Sunil Fernandes
Subscribe to GoodReturns
For Quick Alerts
For Daily Alerts
    A look at banks and institutions that have cut their home lending rates
    Home loan lending rates are falling and this is good news for home loan borrowers. A small cut in home loan can make a big difference, because these are largely big ticket loans. Also, they cover a longer duration, which means interest costs reduce dramatically even with a small cut in home loan rates. Here are a few institutions and banks that have cut their home lending rates.

    State Bank of India (SBI)

    If the country's largest bank cuts rates others tend to follow. SBI  has reduced the interest rate by 15 bps or 0.15 per cent to 10.15 per cent from 10.30 per cent. For women borrowers, there is even more good news as the rate will be lesser at 10.10 per cent. The new rates have already come into effect.

    But, here's something that you must note, as far as SBI Home loans are concerned. The rate cut will actually help only individuals who are borrowing over Rs 75 lakhs since the bank is already lending at 10.15 per cent for loans that are under Rs 75 lakhs at 10.15 per cent.

    Punjab National Bank

    Punjab National Bank (PNB) is offering home loans of up to Rs 2 crore at 10.25 percent. For those above Rs 2 crore, customers are to be charged 10.50 percent. Prior to this PNB, was charging 10.25 per cent interest for loans of up to Rs 75 lakh and 10.50 percent for the loans above that amount.


    HDFC had reduced its interest rate on loans above Rs 75 lakh to 10.15 per cent under its monsoon bonanza scheme. 

    Interest rates may remain steady at current levels

    Interest rates are unlikely to fall very much going forward, given the fact that inflation still remains high and the RBI may not cut interest rates aggressively going forward. So, if you intend to take a loan, it may not be a bad time to for it.


    Story first published: Wednesday, September 3, 2014, 10:23 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more