In what could be termed as good news for homebuyers, they are receiving a major festive season gift from banks as several public sector banks have announced the waiver of processing fees on home loans 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 waived processing fees entirely from December 2024 to March 2025.
Banks offering affordable home loans:
| BANKS |
HOME 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 |
Starting at 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 not offering fee waivers
Unlike public sector banks, private sector banks have yet to announce any waiver on home loan processing fees. Public sector banks generally offer more attractive home loan rates, making them a preferred choice for borrowers. Some private banks are offering a minimum rate of 8.70 per cent for loans up to Rs 30 lakh, while public banks are offering the same loan for up to 30 years at 8.35 per cent.
Centre approves 3% hike in DA
Earlier on October 16, the Union Cabinet approved a 3 per cent hike in Dearness Allowance (DA) for government employees. During a press briefing after the Cabinet meeting, Union Minister Ashwini Vaishnaw said that the DA hike was effective from July 1, 2024. Meanwhile, the Dearness Relief for pensioners has also been revised by 3 per cent. The combined impact on the exchequer on account of both DA and DR would be Rs 9,448.35 crore per annum, as per an official release. It further added that this increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners.
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