SBI Offers Discounts On Interest Rate on Home Loans For Festive Season 2022

 SBI is offering a concession of 20 basis points to borrowers with CIBIL scores of 700-749, which is almost 8.55 per cent, instead of the normal 8.75 per cent.

State Bank of India (SBI)’s festive offers are here! Since the festive month is approaching, the biggest lender in India is also in a jolly mood and is offering concession of 15 basis points to 30 basis points on its sbi home loans. While the offer is seemingly lucrative for many buyers, it is only available from October 4, 2022 to January 31, 2023.

While the normal interest rates on SBI home loans range from 8.55 per cent to 9.05 per cent, under the lender’s festive offers, these rates are expected to be lower and must be checked from the bank itself. In addition to this, SBI is also offering zero processing fees on its regular and top-up home loan plans. But, in order to reap benefits of these offers, a person’s CIBIL score will matter.

SBI Top-Up Home Loan Rates

For this festive season, SBI is offering 1.5 basis points concession on credit scores between 700 to greater or equal to 800, as per Livemint.com. For borrowers with credit score greater or equal to 800, the interest rate is around 8.80 per cent, instead of the normal 8.9 per cent.

For credit scores less than 1 to 699, the interest rates are unchanged, similar to the case of regular home loan rates.

HDFC hikes lending rate by 50 bps; EMIs to go up

 Leading housing finance provider HDFC Ltd. upped its lending rate by 50 basis points on Friday after the Reserve Bank of India (RBI) hiked the policy repo rate by 50 basis points (bps) to 5.9% in its Monetary Policy Committee (MPC) held on Friday. In the last five months, HDFC has implemented a total of seven rate hikes.

"HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 50 basis points, with effect from October 1, 2022," the company said in a statement.

The interest rates on home loans are available from HDFC Limited starting at 8.10% p.a. This interest rate is applicable to loans for purchasing a new house, balance transfers, home renovations, and home expansions. The above-mentioned home loan interest rates are flexible during the loan's term and are determined by HDFC's benchmark Rate ("RPLR"). Both new and existing borrowers will now be required to make EMI payments that are 0.50% higher due to the corporation raising its key lending rate.

On September 30, the Reserve Bank of India (RBI) announced a 50 basis point increase in the repo rate, the fourth such increase since May. The cost of funds for banks and financial institutions would be increased soon as a result of the repo rate, and more banks and financial institutions are anticipated to follow. Meanwhile, as a result of the increase in the repo rate, both current and new loan borrowers would be required to make higher equivalent monthly installments (EMIs) for their car and home loans because it will now cost banks and lending companies higher to borrow funds.

SBI Home Loan की ईएमआई में आज से हो जाएगा बदलाव, आपकी जेब पर कितना पड़ेगा असर

 SBI has not yet revised the minimum interest rate on home loans in September. Effective August 15, 2022, the bank’s EBLR is 8.05%+CRP+BSP, as per the SBI website. RLLR is 7.65%+CRP.

However, depending on the credit score, a risk premium will be charged. This means a borrower with a credit score of more than 800 will now pay a minimum rate of 7.55 percent under the regular home loans.

For applicants who have a credit score of 800 or higher, the minimum interest rate on regular home loans is 8.05 percent. The risk premium in this case is 0. The risk premium is based on the CIBIL score; the risk premium rate increases with a lower credit score.

A credit score of 750 to 799 will result in a 8.15 percent interest rate with a risk premium of 10 basis points. Female borrowers will receive a 0.05 percent interest rate reduction.

Borrowers will be compelled to pay higher interest rates, i.e. higher EMIs, once the reset date arrives, or their loan tenure would be extended if there is room for it.

SBI Benchmark Prime Lending Rate BPLR

The banks Benchmark Prime Lending Rate (BPLR) was hiked to 13.45% p.a. w.e.f. 15.09.2022.

Top Mortgage Lender, HDFC, Sees Home Loan Demand Despite Rate Hikes

 Demand for home loans is strong in India and is expected to pick up further over the next few months, the head of major housing finance firm Housing.

Home loans have grown by 16% as of end July compared to same period last year.

"The economy is buoyant, the feel good factor is high, affordability is better so people are comfortable buying houses even if rates are slightly higher," Keki Mistry, chief executive of HDFC, told Reuters.

The central bank has already raised rates three times by a total of 140 basis points in this financial year to tame stubbornly high inflation, which has remained above the central bank's tolerance band for several months.

Lenders have passed on the interest rate rises but Mistry said that there are no signs of stress among home buyers and collections on loan dues remain robust.

Interest rates are expected to rise further with economists expecting at least another 60 basis points by March 2023, according to a Reuters poll.

"The economy feel good factor is so strong that (we) expect that festival season will be very strong," Mistry said, referring to the September to December period.

"I don't think we will see too much of a rise in interest rate going ahead, some increase will be there but don't think that will deter the buyers," he said.

Economists concur, with Madan Sabnavis, chief economist of Bank of Baroda saying in a report late last month that home buyers would be prepared for fluctuating home loan rates.

Housing loans have grown by 16% as of end July compared to same period last year, according to the latest central bank data.

Demand is likely to be particularly strong from India's larger cities, where sales had slowed between 2016-2020 but where a revival is now visible, said Mistry.

HDFC disburses Rs 2,800-cr low-cost loans under Central scheme

Mortgage major HDFC has disbursed Rs 2,800 crore loans to 14,290 home-buyers under the Pradhan Mantri Awas Yojna (Urban) so far, which entails a Central subsidy of Rs 302 crore.

The Modi government had launched the housing for all by 2022 in June 2015 and the disbursement is from that period.

While the lender has provided home loans worth Rs 1,728 crore under PMAW's credit-linked subsidy scheme (CLSS) to the economically weaker section (EWS) customers and low- income group (LIG), it has disbursed loans worth Rs 1,067 crore to 3,526 customers from the middle income group (MIG), it said in report today.

The EWS comprises people with an annual household income up to Rs 3 lakh, while LIG include those with income greater that Rs 3 lakh and up to Rs 6 lakh.

Government launched its flagship PMAY(U) scheme on June 25, 2015 to provide housing for all by 2022. Since then, it has taken several steps such as inclusion of the MIG category under CLSS, increasing the loan tenure to 20 years, extending the MIG scheme till March 2019, increasing in the carpet area of houses under the CLSS for MIG, etc, to increase the scope of PMAY.

It also announced in the Budget 2018 that about 31 lakh homes are to be built in urban areas in FY19, and 51 lakh in rural areas.

"This has renewed the interest of homebuyers in the real estate sector and allowed first-time home-buyers to avail more benefits to own a house," said Renu Sud Karnad, managing director at HDFC.

HDFC ltd home loan had disbursed 39 per cent of home loans in volume terms and 20 per cent in value terms to customers from the EWS and LIG segment during the nine months to December 2017, said the report.

The lender on an average has been approving 8,000 loans on a monthly basis to the EWS and LIG segments, with monthly average approvals at about Rs 1,300 crore, it added.

In value terms, home loans to the EWS and LIG segments grew 32 per cent and 39 per cent, respectively, during the April-December 2017 period.

The average home loan to the EWS and LIG segment stood at Rs 10.24 lakh and Rs 17.38 lakh, respectively.

Till date 4,452 towns have been notified as statutory towns under the housing for all mission and properties located in these towns are eligible for subsidy, according to the report.

Magicbricks & SBI to launch Big Bang Home Carnival 2018

India's No.1 Home Loan Bank & MAGICBRICKS jointly comes up with Big Bang Home Carnival. 62 developers have come on board to showcase 97 projects while SBI is offering a host of loan deals in SBI and RERA Approved Projects.

The housing festival will showcase nearly 16,000 units, across 22 Indian cities and will culminate on March 9. 62 developers have come on board to showcase 97 projects while SBI is offering a host of loan deals in SBI and RERA Approved Projects.

Get more details on SBI Home Loans

State Bank of India offering home loans at Zero processing Fee with an attractive interest rates and additional 20% loan for the young generation having age upto 45 years. The customers can get home loans pre-approved even before they decide the property to be purchased. To improve customer home loan journey SBI offer fast processing and door step document collection facilities.

Under the Big Bang Home Carnival, many developers are also offering a host of exciting deals to customers ranging from international holidays, free car parking and club membership, cash discount up to Rs.350 per sqft, GST free registration, free modular kitchen and etc. Besides, SBI is also offering pre-approved home loans, flexi home loan (with 20% additional loan) and zero processing fees in SBI approved properties.

Shimla’s First Snowfall of the Year Will Take Your Breath Away

Residents and travellers alike were amazed by the beauty of the blanket of snow, which cloaked the town in a picturesque vision of beauty. As news spread, people gathered to enjoy the first snowfall of the year. Here are some photographs shared on Instagram, capturing visions of Shimla’s snowcapped mountains and valleys!

The tourist season in Shimla (taxi for shimla from delhi) and some other places, which got a boost after the first snowfall of the year last week, providing little relief to the hotel industry, lasted for just four days.

The occupancy in hotels again witnessed a slump today as the week-end tourism boom ended and the occupancy dropped by 70 to 80 per cent. The hotel industry is now pinning hopes on the predictions of rain and snow in mid and high hills on January 29 and 30.

“With Shimla witnessing the moderate snowfall on January 23 and Republic Day on Friday, extending the weekend, there was a heavy footfall of tourists and hotels were packed to their capacity,” said president, Tourism Industry Stakeholders Association, Shimla, MK Seth, adding that, “We are hoping that the predictions of the Meteorological Department will come true and the tourist rush will increase again.”

However, locals had a harrowing time commuting in and around the city as roads were chocked due to heavy vehicular rush. Long queues were seen near Kufri on the suburbs of Shimla while major parkings that have come up on the Cart Road again proved to be major traffic bottlenecks.

The worst hit were the people crossing the lift as multiple parkings have come up in the vicinity and crossing the stretch is nothing less than a nightmare. Planners did not visualise the peril of having single entry and exit route at the parkings and vehicles waiting for entry into the parking led to a long queue of vehicles, causing traffic jams.