Home Loan Balance Transfer: Those who transfer home loans are also getting the benefit of special loan offers of banks.
Home Loan calculator: Home loan interest rates are currently at the lowest level. During the festive season, offers like reduction in interest rates as well as waiver of processing fees are being offered by both government and private banks. The special thing is also that banks are giving the benefit of special loan offer not only to new customers but also to home loan transferees. Kotak Mahindra Bank is currently offering the lowest home loan interest rate of 6.50 percent. After this, PNB, SBI and Bank of Baroda (BoB) have also cut interest rates.
Kotak, PNB, SBI, BoB: Where is the best offer?
Both public and private banks are competing to reduce interest rates. Kotak Mahindra Bank of the private sector is offering the cheapest home loan in the industry at 6.5 per cent. Presenting the festive offer, state-run bank Punjab National Bank (PNB) has reduced the interest rates of home loans to 6.60 percent. There is no limit on the loan amount, it will be linked to your credit score. Those who transfer loans will also get the benefit of this.
State Bank of India (SBI) has also offered credit score linked home loans. In this, customers will get a home loan at an initial interest rate of just 6.70 percent per annum, with no limit on the loan amount. The interest rates have been made equal for all categories of customers by eliminating the additional interest rate of 15 basis points on non-salaried customers. At the same time, Bank of Baroda (BoB) has also cut 25 basis points (0.25 per cent) on home loans and auto loans. BoB is now offering home loans at an interest rate starting at 6.75 per cent.
Loan transferees also benefit
Not only new home loan customers will get the benefit of the festive offer from banks, but balance loan transferees can also take advantage of it. Kotak mahindra bank, SBI, BoB and PNB have said in their festive offer that customers doing balance loan loan transfer will also get the benefit of starting interest rates of home loans. That is, the interest rate that will be for the new customer, the same rate will also have to be paid to the customer who transfers the loan. However, it is to be understood that banks also say that these special interest rates will depend on the credit score of the customer. This means that the better the credit score, the cheaper it will be for you to take a loan.
How much is the benefit on 30 lakh loan for 20 years
Suppose, you are getting your home loan balance transfer done and you have a good credit score. This means that you will get the benefit of special interest rates of banks. Here let’s assume that at present you have a loan of 30 lakhs for 20 years and your current interest rate is 6.95 percent per annum.
SBI: SBI has an initial interest rate of 6.70 percent in the special offer. In this way, you will save 0.25 percent on balance transfer. Now consider EMI. Your EMI will come down from Rs 23,169 to Rs 22,722. In this way, there will be a saving of Rs 447 every month.
Mahindra bank box:
In the special offer, the starting interest rate of Kotak Mahindra Bank is 6.50 percent. In this way, you will save 0.45 percent in interest on balance transfer. Your EMI will come down from Rs 23,169 to Rs 22,367. In this way, there will be a saving of Rs 803 every month.
GNP: The starting interest rate of PNB in the special offer is 6.60 percent. In this way, you will save 0.35 percent in interest on balance transfer. Your EMI will be reduced from Rs 23,169 to Rs 22,544. In this way, there will be a saving of Rs 625 every month.
BoB: The initial interest rate of Bank of Baroda is 6.75 percent. In this way, you will save 0.20 percent in interest on balance transfer. Your EMI will come down from Rs 23,169 to Rs 22,811. In this way, there will be a saving of Rs 385 every month.
100% rebate in processing fee
SBI, PNB, Kotak Mahindra and Bank of Baroda have completely waived processing fees on special home loan offers for the festive season. Now customers will not have to pay processing fee for home loan. Keep in mind here that this offer is for a limited period. Therefore, before deciding on a loan, do check it out.
