Festival is a time when many Indians purchase a new car, household stuff, and even a new house. It’s time for the people of India to go on a shopping spree, as spending money to buy new things and gifting others during the festival season is considered auspicious that brings good luck. As a result, many companies, including banks, provide many different offers and discounts on their services. And that includes home loans too. Almost every bank and financial institute offer mortgage loans with various discounts and special deals. To grab the best deal possible, you need to understand the types of home loan offers and compare deals from different banks. This is what we are going to explain in this article. Let’s dig in.
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Types of Home Loan Offers Available During Festival Season
During the festival season, many banks offer different types of home loan deals for both salaried and self-employed individuals. Let’s take a look at some of the best home loan offer categories.
1) Reduced Interest Rates:
Many banks and financial institutions decrease the overall interest rate of a housing loan by up to 1% during the festival season. This reduced interest rate helps you get a housing loan with a lower EMI, bringing down the overall cost of securing a mortgage significantly.
For example, if you borrow Rs. 25 lakhs for 20 years with an 8% interest rate, the EMI of the mortgage will be Rs. 20,911. However, if you take the same loan during festival season with an interest rate of 7%, the EMI will be reduced to Rs. 19,382. While it might not seem like much, with a reduction of 1% interest rate, you will save almost Rs. 4.5 lakhs by the end of the tenure of the house loan.
2) Lower Processing Fees and Pre-payment Charge Waivers:
During the festive season, banks often lower loan processing fees. Some banks even go the extra mile and totally eliminate the processing fees. Such measures are golden opportunities for potential housing loan customers as they decrease the cost of borrowing by a significant margin.
Some banks even waive the pre-payment charges from the mortgage loan, allowing the borrowers to close the loan before its tenure ends without having to bear the pre-payment penalty.
3) EMI Waiver:
EMI waiver is one of the most attractive house loan promotions offered by the banks during the festival season. In short, the banks will simply waive a number of EMIs that you were originally obliged to pay. For example, a bank might offer to waive 12 EMIs if you secure a housing loan during the festival season. In other words, You don’t have to pay one year’s worth of EMIs. That’s a lot of money. Of course, such juicy offers come with a few strings attached. For instance, you might not be able to prepay your loans before the tenure ends if you take the EMI waiver offer.
4) Easy Application Process:
Banks and other financial institutions receive a lot of housing loan application letters during celebrations. So, to deal with the flood of loan applications, the banks often offer a fast and easy application process, reducing the hassle of tedious paperwork.
Thanks to this, you can apply for a home loan online and submit your application and document through the bank’s official website. If you face any problem during the submission process, banks often send one of their representatives to collect your documents.
Best Home Loan Offers During This Festival Season
While almost all banks offer special housing loan schemes during the festival season, some offers are just too good for you to miss. Let’s talk about some of the best home loan offers available this festive season.
1) SBI Home Loan Festival Offer:
State Bank of India is one of the most trusted banks in India that offers hundreds of attractive financial services. SBI promotes many loan offers during every festival season. This season, SBI is offering a festival bonanza by slashing the overall interest rate on house loans by 0.15 per cent.
2) HDFC Home Loan Festival Offer:
HDFC bank is one of the largest financial institutes and one of the top private banks in India. Just in the first quarter of this year, HDFC bank experienced a 21.5% rise in the number of sanctioned loans. It tells us that it’s one of the most preferred private banks for Indians when it comes to securing loans and other emergency funds. This festival season, HDFC bank is slashing the interest rates against home loans by up to 0.90 per cent. The offer will be available till November 30, 2022.
3) Bank of Baroda Housing Loan Offer:
Bank of Baroda is known for its attractive loan schemes throughout India. And just like the other banks, the Bank of Baroda is also promoting many attractive loan schemes this festival season. This season, you can get a house loan from the Bank of Baroda at an interest rate as low as 7.95 per cent. Moreover, the interest rates are going to be slashed by up to 25 basis points. It is also waiving the home loan processing fee, decreasing the total cost of borrowing money.
4) ICICI Home Loan Festival Offer:
ICICI bank is one of the largest multinational private banks in India that offers many incredible financial services to its customers. This festival season, ICICI bank is offering home loans with reduced processing fees. It’s allowing its housing loan customers to transfer pre-approved balances for just Rs. 1,100 processing fee. It’s also providing a flat 50% off on the mortgage processing fees.
Many Indians believe that buying a new car, jewellery, and home during auspicious occasions will bring them a fortune. And the banks are ready to provide solid deals on their financial services, including home loans, so you can buy your dream house during the festival season. But don’t hop in after seeing only a single offer. Go through the festival deals on housing loans from different reputable banks and financial institutions and compare them carefully. This way, you can get the best loan deal and purchase your dream house to celebrate festivals with your loved ones in your own house.