Dena Bank to offer the cheapest Home Loan among all Public Sector Banks

Dena Bank on Wednesday announced a new offer on a home loan. The new rate has been pegged at 8.25 percent, which is touted as the cheapest one available. This means the state-owned bank becomes the leader in terms of the cheapest loan rate offered by any lender. Previously, the position was held by State Bank of India (SBI). 

SBI earlier in November had announced to give home loans at 8.3 percent. Notably, the offer by Dena Bank is a part of the retail loan carnival that will start from November 16, and end on December 31 of this calendar year.

The ‘Dena Retail Loan Carnival’ will offer loans to the customers in the range of 8.25 percent to 9 percent starting November 16 until December 31. The carnival is being launched to promote housing and vehicle loans, the bank said. Dena Bank will provide home loans up to Rs 75 lakh at 8.25 percent per annum and car loans at 9 percent per annum. However, the car loan rate for women is a little higher. Women borrowers will be offered car loans at 8.90 percent.

Interestingly, Dena Bank will not charge any processing or documentation fee on the loans that will be processed during the carnival. Customers can contact any branch of Dena Bank for availing the loans, it said in a statement.

Earlier, November 3, State Bank of India (SBI) said all home loans of up to Rs 30 lakh to eligible salaried borrowers will attract an interest rate of 8.3 percent, as against 8.35-8.4 percent earlier, in an environment of relatively slow mortgage growth. Car loans to be priced between 8.7 percent and 9.2 percent, as against 8.75 percent-9.25 percent earlier. On Tuesday, the country’s largest lender had reduced the marginal cost of funds-based lending rate (MCLR) by 5 bps across tenures, taking the one-year MCLR to 7.95 percent.

Growth in mortgages in the banking sector slipped to 12.8 percent year-on-year (y-o-y) in September from 13.2 percent in August, data released by the Reserve Bank of India (RBI) earlier this week showed.