A 15-year home loan now costs 8 per cent from a premium home loan player.

This essentially means that retail customers can borrow at 2.30 per cent more than the sovereign, with 15-year government paper yield veering in the region of 5.70 per cent.

Housing finance companies are offering customers lower than the rack rates quoted in the market based on individual profile.

Customers can dictate the interest rates on housing loans based on individual profiling. Housing Development Finance Corporation admits that rates are negotiable depending on customer profile.

"Housing loans were always customised at HDFC except for the interest rate. Today it is possible to even customise the interest rate," said the housing major's spokesperson.

Competition on the housing loan turf has seen interest rates drop to less than eight per cent and many customers are getting even better deals of 25 to 50 basis points lower than the rack rates.

The cheapest loans as per the rack rates in the market today are offered by HSBC at 7.75 per for loans up to five years and up to 8.5 per cent for loans of six years and more.

However, most of the leading housing finance majors are offering concessional rates as per the customer's profile, salary and job status.

Further, as some companies have already pre-selected customers by virtue of where they work, offering them reduced home loan rates to the extent of 25-50 basis points.

LIC Housing Finance offers reduced interest rate on home loans to employees of over 150 select corporates by 25 basis points.

Employees of Dr Reddy's, Infosys, I-Flex and Wipro among a host of other top corporate houses get finer rates, averaging from eight to 8.75 per cent depending upon the tenor of the loan.

In the wake of intense competition, leading institutions have resorted to profiling of customers to offer less than the rack rates quoted.

"Just as we have credit ratings for corporates, we have designed ratings for individual customers. Based on their credit-worthiness, they can get better rates than others," said a senior official of a public sector bank.

When it comes to profiling a customer,  those borrowing relatively larger amounts, earning higher salaries, having a professional degree that ensures their future growth potential are the ones who can get a better deal.

A chartered accountant, for instance, would get a better deal than a graduate earning the same salary in an organisation. Age also matters, as a younger individual can bargain for a lower rate as he is capable of taking longer-term loan.

ICICI Bank offers a 50 basis points reduction on home loan rates across all tenors, to employees of selected corporates identified on the basis of the size of the company, its net worth, turnover, profitability, and employee strength.

The list includes top corporates, majority of which are in the A-Group.

The cutting edge

• ICICI Bank offers 50 bps less to employees of select corporates.
• HDFC customise interest rates depending on customer profile.
• LIC Housing offers 25 bps less to employees of over 150 top corporates.