In what could be considered good news for homebuyers, they are getting a major Christmas gift from banks as several public sector banks have announced waiver of home loan processing fees ahead of Diwali. According to information provided on their official websites, public banks such as Central Bank of India, Canara Bank, Indian Overseas Bank, Bank of Baroda and Punjab National Bank have completely waived processing fees from December 2024 to March 2025.
Banks offering affordable home loans:
| BANKS | HOUSING LOAN RATES |
| State Bank of India | 8.50% to 9.65% |
| Central Bank of India | 8.5% to 9.5% |
| Punjab National Bank | 8.4% (floating |
| HDFC Bank | 8.75% |
| ICICI Bank | 9.25% to 9.65% |
| Kotak Mahindra Bank | From 8.75% |
| Bank of Baroda | 8.4% to 10.6% (based on CIBIL score) |
| Indian Overseas Bank | 9.35% (linked to repo rate) |
Private sector banks do not offer fee waivers
Unlike public sector banks, private sector banks are yet to announce any waiver of home loan processing fees. Public sector banks generally offer more attractive home loan rates, making them the preferred choice for borrowers. Some private banks offer a minimum rate of 8.70 per cent for loans up to Rs 30 lakh, while public banks offer the same loan for up to 30 years at 8.35 per cent.
Center approves 3% increase in DA
Earlier on October 16, the Union Cabinet approved a 3 per cent hike in Dearness Allowance (DA) for government employees. Addressing a press conference after the Cabinet meeting, Union Minister Ashwini Vaishnaw said the DA hike came into effect from July 1, 2024. Meanwhile, dearness relief for pensioners was also revised by 3 percent. The combined impact on the exchequer on account of both DA and DR would be Rs 9,448.35 crore per annum, according to an official statement. He further added that this increase is in accordance with the accepted formula, which is based on the recommendations of the Seventh Central Wages Commission. This will benefit around 49.18 lakh central government employees and 64.89 lakh pensioners.
READ ALSO: Modi govt approves 3 per cent hike in DA before Diwali: What does it mean? Explained
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