The continuous drop in mortgage rates is driving hme loan growth, leading to strong pick up in home sales post-pandemic .
Home loan rates have come to a historic low of sub 7%. More recently, the PSU mortgage leader, SBI has further cut down home loan rates by 10 bps to 6.7% for loans up to Rs 75 lakh. It has further waived off the processing fee to reward customers with good credit history. Leading private home loan lenders, HDFC and ICICI bank are offering home loans at interest rate beginning 6.8%. LIC Housing is charging 6.9% interest on home loans. Kotak Mahindra Bank has piped everyone by offering home loan at 6.65%. As a result of this, on a year to date basis, bank home loans have grown 5.86%. According to RBI data, total outstanding home loans from banks shot up to Rs 14.18 trillion towards the end of January 2021. SBI has reached Rs 5 trillion in home loans and hopes to double it.
Says Mr.Pradeep Aggarwal, Founder & Chairman, Signature Global Group and Chairman, Assocham National Council on Real Estate, Housing and Urban Development, ” The low home loan rates together with range bound prices have been the major driver of home sales, particularly affordable and mid-segment homes. The continuous support on mortgage rates by the banks and Centre’s supportive polices, will keep up the momentum of home sales in the coming months”.