Lenders introduce special home loan offers in the run up to financial year end

Bank of Maharashtra (BoM) on Sunday said it will lower the home loan rate by 20 basis points (bps), offering loans at 8.40 per cent with effect from March 13, 2023, against the current 8.60 per cent.

In the run-up to the financial year-end (FY23), banks and housing finance companies are bringing up special home loan offers to build their home loan portfolio.

Bank of Baroda (BoB) had reduced its home loan interest rates by 40 basis points (bps) to 8.50 per cent with effect from March 5, 2023, till March 31, 2023.

Both BoM and BoB have waived processing fee on home loans. HDFC has introduced a special home loan offer at 8.70 per cent for customers availing loan with a credit score of 760 and above and availing disbursement(part/full) till March 31, 2023.

The special home loan offer from lenders comes even as they have passed on the 250 basis points hike in the policy repo rate since May 2022 to retail loans.

Read: Banks mopped up more deposits than they lent in Feb 24th fortnight

Banks’ home loans have grown at a faster clip of 15.4 per cent year-on-year (YoY) to stand at Rs 18,88,144 crore as of January 27, 2023, as per the latest Reserve Bank of India data. Home loans had grown 12.8 per cent yoy as of January 28, 2022.