HSBC and Yes Bank join rate cut war; reduce mortgage rates
HSBC on Friday cut rates on its home loan products, offering mortgages at 6.45% – one of the lowest in the industry – for balance transfers.
For new loans, local branches of the UK lender will offer loans at 6.70 percent, which is on par with industry leaders like SBI and HDFC.
Yes Bank has also cut its rate to the same level in a journal and is aiming to double the size of the book during the limited time offer.
Read also: HDFC to offer home loans at 6.70% interest until October 31
Last month, private sector lender Kotak Mahindra Bank cut interest rates to offer home loans from 6.50%, forcing others to revise their rates as well. Credit growth is at low levels amidst a flow of cash leading to rate cuts.
HSBC India said its rate was reduced from 0.10% to 6.45% for balance transfers, with existing borrowers served by rivals being enticed to transfer remaining loan amounts to a newer lender through offers aggressive.
Home loans are generally viewed as safer bets due to the underlying security, and the decline in COVID infections has also led to a healthy recovery in home buying.
In a statement, the bank said it had also waived processing fees for these loans and added that the rate offer will only be applicable until December 31.
Read also: Home sales more than doubled in July-September, average prices up 3% in 7 cities: Anarock
“We believe that this reduction in mortgage rates will help reduce the interest burden on customers and make home ownership more affordable,” said Raghujit Narula, head of wealth management and banking services at individuals.
The bank is currently offering home loans of up to Rs 30 crore to all customers at 6.70 percent.
Meanwhile, private sector lender Yes Bank also announced a reduction in its offer to 6.70 percent, according to a statement, which also said salaried women would get 6.65 percent credit.
“Given our focus on continuing to build the retail book, home equity lending is a segment that we plan to expand and plan to double the size of the book over the next three months,” his said. Managing Director and Managing Director Prashant Kumar.