One of the biggest banks of the country, State Bank of India, is giving continuous support to the builders in some or the other form. They are now on to encourage home loans among people and ultimately maintain its position of being the best mortgage company.
Now As a marketing strategy, SBI has planned to offer rebate on loans borrowed by builders for construction in the affordable housing segment. The rebate will go up to 35 basis points.
The Chief General Manager of SBI Kolkata has said that it is getting in collaboration with the developers and is making the borrowing of construction funds easier for them for affordable housing projects. As a result, this complements the home loans market.
For the people who aren’t aware, one basis point is equal to 0.01 percentage point.
Only last week, SBI had reduced its home loan rates. According to the new rates, it is charging home loans at a rate of 8.35% for women salaried borrowers for an amount up to Rs.30 lakh, while 8.40% for other salaried individuals.
Moreover, these rates were matched by its competitors HDFC and ICICI Banks as they are also making efforts to gain the most out of the government’s initiative of affordable housing.