HDFC Bank Unveils Home Saver and Refurbishment Loan Plans

HDFC Bank is set to roll out new offerings for homebuyers, aiming to provide more flexibility and support for homeowners. In an announcement made by a senior bank official on Thursday, it was revealed that HDFC Bank plans to launch its Home Saver product in April, along with Home Refurbishment loans in the near future.

The Home Saver product, similar to an overdraft facility, will directly compete with State Bank of India’s Maxgain home loan scheme. Additionally, HDFC Ltd, before its merger with HDFC Bank, offered a Home Refurbishment loan, which will be reintroduced soon.

Both products will be available to both existing and new customers, as stated by Arvind Kapil, the country head of mortgage banking, home loan, and LAP at HDFC Bank. The Home Refurbishment loan is expected to be slightly higher, by 100 basis points, compared to the interest rate charged on home loans by the bank.

HDFC Bank’s initiative aims to further solidify its position in the retail home loan segment. With a significant increase in market share and sequential growth of 3.6%, HDFC Bank leads among its peers.

Arvind Kapil highlighted the importance of home loans in generating low-cost funds, known as current and savings accounts (CASA). Despite a decrease in CASA to 38% from 42%, attributed to the merger with HDFC, HDFC Bank remains the preferred choice for new home loan borrowers.

In a bid to enhance accessibility, HDFC Bank plans to convert all erstwhile HDFC service centers into branches gradually. With these strategic moves, HDFC Bank aims to cater to the evolving needs of homebuyers while maintaining robust underwriting standards.