Housing Development Finance Corporation (HDFC) on September 21 said it’ll offer home loans at 6.7 percent as a part of a festive offer, joining a bunch of mortgage lenders that have cut interest rates to perk up demand.

Under this special offer, customers can avail HDFC home equity credit starting at 6.70 percent effective 20th September 2021, the bank said during a release.

This offer are going to be applicable to all or any new loan applications regardless of the loan amount or employment category. The special rate is linked to the borrower’s credit score.

This is a close-ended scheme and can be valid till 31st October 2021, the lender said.

“Housing is far cheaper today than it ever was. within the last few years, property prices have more or less remained an equivalent in major pockets across the country while income levels have gone up. Record low-interest rates, subsidies under PMAY, and therefore the tax benefits have also helped.” said Renu Sud Karnad, director , HDFC Ltd.

Recently, a clutch of banks including depository financial institution of India (SBI), Bank of Baroda, Kotak Mahindra, and PNB had slashed home equity credit rates.

On Saturday, SBI said it’s reduced home loans rates to six .70 percent. Also, women borrowers will get a special concession of 5 bps, the bank said during a release.

With the reduction, SBI home equity credit interest rates now start from 6.70 percent for loans up to Rs 30 lacs and 6.95 percent for loans above Rs 30 lacs and up to 75 lakh. The big-ticket loans above Rs 75 lacs would get home loans at 7.05 percent, the bank said. Customers also can apply for a loan from the convenience of their home via the YONO App to earn a further interest concession of 5 bps, SBI said.

Earlier, SBI had reduced the house loan rate to six .7 percent till March 31 as a part of a festive offer post which rates were restored to six .95 percent from April 1.

Kotak Mahindra Bank announced on September 9 that it’s reduced home equity credit rates by 15 base points effective September 10. Kotak Mahindra Bank Ltd (KMBL) will now offer home loans at an rate of interest of 6.50 percent once a year rather than 6.65 percent once a year .

Banks have shifted aggressively to home loans during Covid times to chop risks of risky corporate loans.