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Loan rates ease between competitions

In home loans too, the slab Rate is down from 10.5% in January to around 10.25%. Loans against property, too, have seen a 25-50 bps reduction so far this year. HFCs (home finance companies) and banks say that home Loan rates in the industry are now closely aligned to the base rate (10-10.25%) and they range from 10.15% to 10.3% as against 10.25% to 10.5% a year ago. Like auto loans, there's no official rate cut in the offing but there will be promotional pressure this festive season.

Some home financiers like Sundaram BNP Paribas Home Finance have reduced their home rates by 0.25% to 0.30% in the last five months to 10.15% currently. "During the festive season, we may bring in offers of home loans just below 10% or at 10%," Srinivas Acharya, MD, Sundaram BNP Paribas Home Finance, said.

Industry biggie HDFC will soon be closing its two month campaign (which began on August 1) on home loans up to Rs 75 lakh at 10.15%.

"Earlier, the 10.15% rate was applicable for loans up to Rs 30 lakh only. But as part of a special promotion this rate was extended to loans up to Rs 75 lakh," senior officials from the company said.

Bankers say some price correction has already happened in home loans in terms of product structuring over 12 months. Till last September, banks and HFCs offered differential rates on home loans up to Rs 25 lakh, home loans between Rs 25 and Rs 75 lakh and home loans above Rs 75 lakh.


This post first appeared on Loan For Personal Home At Low Intrest Rate, please read the originial post: here

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Loan rates ease between competitions

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