ICICI bank reduced its interest rate on home loans up to ₹75 lakh to 6.70 per cent
The country’s top lenders including State Bank of India (SBI), Kotak Mahindra Bank, HDFC Bank, as well as ICICI Bank recently reduced the interest on home loan rates. Along with the low-interest rates, the banks are providing various offers including discounts on processing fees or special benefits for women customers to lure home buyers. On Friday, March 5, the country’s leading private lender ICICI bank announced that it reduced its interest rate on home loans up to ₹ 75 lakh to 6.70 per cent, its lowest in 10 years. (AlsoRead: ICICI Bank Reduces Interest Rate On Home Loans To Lowest In 10 Years )
This came days after the country’s largest lender- State Bank of India reduced its interest rate on home loans up to ₹ 75 lakh to 6.70 per cent, its lowest rate on home loans on record. As the financial year comes to a near close, the banks have reduced interest rates on home loans to take advantage of stamp duty relaxation and compete in a sector witnessing low credit demand.
Here are some remarks from experts of the real estate sector on the recent reduction in home loan interest rates and its effect on the sector as a whole:
“The reduction in home loan interest rates by leading banks for a limited period have extended the best buying opportunity for the homebuyers. The banks are competing to grab the home loan customers before the fiscal year ends. Currently, the home loan rates are at an historic 15 year low, as banks compete in a market with low credit demand. The benign interest rates environment will continue for some time and it is unlikely that interest rates will fall further from the current levels,” said Pritam Chivukula, Co-Founder and Director, Tridhaatu Realty (Secretary, CREDAI-MCHI)
”For the next few days, the buyers can swoop in on good deals on the back of rock-bottom interest rates on home loans, stamp duty relaxation, offers and the availability of choices from good developers. We can already see that the demand for residential properties has picked up now as people are beginning to believe that this is the best time to buy a property,” added Pritam Chivukula.
“There is already a growing desire of owning a home as consumers look at it as a necessity in this unprecedented time of the COVID-19 pandemic. With the last few days left to avail the stamp duty benefit, there is a stiff competition amongst the financial institutions to provide the consumers with the best home loan interest rates,” said Ashok Mohanani – President, NAREDCO Maharashtra
”This is the best time to buy a home as it gives the aspiring homebuyers a lifetime opportunity to purchase their dream home with reduced stamp duty as well as all-time low interest rates. These factors are also proving to help spur the real estate demand that was temporarily hit as a result of the pandemic,” added Ashok Mohanani.
“The reduction in home loan rates by leading banks is going to help the demand side immensely. Currently, the all-time low, sub-7 per cent interest rates are encouraging consumers to proceed with their purchase and quickly close their transactions. Low interest rates also help enhance eligibility for home buyers thereby bringing more customers into the marketplace,” said Jayesh Rathod, Executive Director, The Guardians Real Estate Advisory
”The real estate sector has benefited immensely from the record low home loan rates, apart from the temporary reduction in stamp duty charges in key states. A low interest rate regime is bound to catapult unimaginable, economic growth in the country as a result of enhanced consumption. The low interest rates coupled with negligible or nil transaction cost will augur well for ready-to-move-in homes and the affordable housing industry. Both of these categories will benefit immensely from the reduced rates,” added Jayesh Rathod.