Top home loan providers slash interest rates to stir up market

To stimulate the sluggish real estate sales and consequent lower home loans demand, the top home financiers have started slashing interest rates on home loans, all this in the wake of RERA which is also expected to boost the real estate demand.

The largest home loan provider of India, State Bank of India, is offering 8.35 per cent interest on home loans up to 30 lakh, and 8.50 per cent interest on home loans above 30 lakh and interest of 8.60 per cent on home loans above 75 lakh for salaried borrowers. SBI has also been assisting borrowers to avail interest subsidy of Rs 2.67 lakh to eligible customers under the Pradhan Mantri Awas Yojana scheme.    
 
Another home loan major, LIC Housing Finance launched ‘Griha Siddhi’ providing 8.40 per cent interest on home loans up to Rs 25 lakh. Whereas, the same scheme provides a further rebate to women with interest at 8.35 per cent.      
         
Adding to the competition, Bajaj Finance, of the Bajaj Finserv group, is offering home loans at interest rate of 8.50 per cent until May 15, 2017, to be offered instantly, with the EMI payments starting after three months. Meanwhile, HDFC cut their interest rates to 8.50 per cent for new customers.     
 
According to expert reports, affordable housing finance companies are expected to grow at CAGR of 40 per cent in the next four years, driven by the government’s plans and initiatives to achieve housing for all by 2022.