State Bank of India, the largest bank of the country, has cut down the home loan rates in the range of 10 to 25 basis points. The step by the SBI will also probe other lenders to cut down their home loan rates too. However, SBI has not reduced the Marginal Cost of Lending Rate (MCLR) and is still unchanged at 8% for a single year. In the entire market of home loan, SBI stands at the largest share.
As per the reduced home loan rates by SBI, 8.35% will be rate for salaried borrowers who borrow home loans till Rs.30 lakhs. For borrowings of home loans that are more than Rs.30 lakhs, the rate will be 8.50% which has come down by 10 bps. On loans over Rs.75 lakhs, the rate will be same as before which is 8.60%. The cut-down in interest rates by SBI will benefit the new customers more as the existing ones are bound to follow the fixed rate for one year according to the lending rates.
It has also been announced by SBI that a customer who is eligible for a home loan can get an interest subsidy amounting to Rs.2.67 lakhs under Pradhan Mantri Awas Yojana. To aid the affordable housing segment which is being encouraged by the government in every way possible, SBI has also made special offers for the builders to get their construction financed for affordable housing projects.
As per the MD of SBI, the reduction in home loan rates by SBI will help many people in buying the dream home they have always wanted.
Also, just a month back RBI had warned banks to cut down the rates on home loan.
There are multiple channels available for people to apply for home loans in SBI.