Loan rates ease between competitions
In home loans too, the slab rate is down from 10.5% in January to around 10.25%. Loans against property, too, have seen a 25-50 bps reduction so far this year. HFCs (home finance companies) and banks say that home loan rates in the industry are now closely aligned to the base rate (10-10.25%) and they range from 10.15% to 10.3% as against 10.25% to 10.5% a year ago. Like auto loans, there's no official rate cut in the offing but there will be promotional pressure this festive season. Some home financiers like Sundaram BNP Paribas Home Finance have reduced their home rates by 0.25% to 0.30% in the last five months to 10.15% currently. "During the festive season, we may bring in offers of home loans just below 10% or at 10%," Srinivas Acharya, MD, Sundaram BNP Paribas Home Finance, said. Industry biggie HDFC will soon be closing its two month campaign (which began on August 1) on home loans up to Rs 75 lakh at 10.15%. "Earlier, the 10.15% rate was applicable f