If you are planning to buy a house this festive season, there is some good news for you as some leading Indian banks are offering discounted rates on home loans for a limited period. As an early gift to home buyers, the State Bank of India and HDFC bank are offering home loans at discounted rates of 8.40% as part of their festive offering.

SBI’s discounted rates on home loans

The home loan rates for SBI normally range from 8.55% to 9.05%. As part of the festive offering, the bank is offering a concession of 15 basis points to 25 basis points or 8.40% to 9.05%. The offer is applicable till January 30, 2022. But in order to avail these loans your CIBIL score matters, which is the three-digit numeric of your credit history of the past 36 months. CIBIL score, which ranges from 300-900, is important as it is a first impression for the lender to get their loans approved. The higher the CIBIL score the more are chances to get the loan approved by the lender.

For regular home loans including Flexipay, NRI, non-salaried, privilege/shaurya and Apna Glar, SBI is offering a concession of 15 basis points at 8.40% for a CIBIL score of 800. For the CIBIL score ranging between 750 and 799, the country’s largest lender is offering a concession of 25 basis points or 8.40% compared to the normal rate of 8.65%. For the CIBIL score ranging between 700 and 749, the bank is offering a discounted rate of 20 basis points or 8.55% compared to the normal home loan rate of 8.75%. Meanwhile, the rates for regular home loans with credit score 650-699, 550-649 and no CIBIL score has remained unchanged at 8.85%, 9.05% and 8.75%, respectively.

For top-up loans with the CIBIL score of 800, 750-799 and 700-749, the bank is offering a concession rate of 15 basis points at 8.80%, 8.90% and 9%, respectively. However, the top-up loan rates with the credit score 650-699, 550-649 and no CIBIL score have remained unchanged at 9.25%, 9.55% and 9.15%, respectively.

For P-LAP home loan rates with the CIBIL score of 800, 750-799 and 700-749, the bank is offering a concession rate of 30 bps at 10%, 10.10% and 10.20%, respectively. However, the top-up loan rates with the CIBIL score 650-699, 550-649 and no CIBIL score have remained unchanged at 10.60%, 10.70% and 10.50%, respectively.

Notably, while there is no processing fee for regular home loans and top-up loans, a processing fee worth ₹10,000 is necessary for P-LAP loans. SBI has over 28 lakh home loan customers.

HDFC discounted rates on home loans

Private lender HDFC is offering discounted rates between 8.40% and 8.90% for all home loans. The offer is applicable till November 7, 2022.

“HDFC Limited offers low home loan interest rates starting from 8.40*% p.a. This rate of interest is applicable to Home Loans, Balance Transfer Loans, House Renovation and Home Extensions Loans. HDFC offers an adjustable-rate loan also known as a floating rate loan as well as a trufixed loan in which the interest rate on the home loan remains fixed for a specific tenure (say first two years of the entire loan tenure) after which it converts into an adjustable-rate loan,” the bank said in its website.

The development comes days after the Reserve Bank of India raised its key repo rate by 50 basis points at 5.90% in order to tame inflation. Following the repo rate hike by the RBI, the lenders have heightened the lending rate by up to 0.50%.

SBI Home loan rates

Diwali festive offer: Check out which banks are offering discount rates on home loans