SBI cuts home loan rates by 0.25% | Lowest in market | Effective from 09 May 2017

State Bank of India (SBI), the country’s largest lender in India has taken a big leap to give a fillip to the affordable housing segment, in line with the Prime Minister’s vision of providing “Housing for All” by 2022.

The bank announced a rate cut for home loans to the tune of 25 basis points to 8.35 percent per annum for sub Rs 30 lakh loan. With this reduction, SBI’s offering is the lowest in the market. The new rate will be effective from May 9, 2017.

Under the new government scheme, loans under Rs 30 lakh qualify for affordable housing.

For male borrowers, the limited period offer is valid till July 31 and the reduction is 20 basis points (bps) to 8.40%, SBI managing director for national banking Rajnish Kumar told PTI.

The new rate reduction of 25% for women will be for the salaried borrowers and for the non-salaried, it will be 20 bps cut.

Similar will be the rates applicable to male salaried and non-salaried borrowers.

One percentage point is 100 bps.

Further, eligible home loan customers can also avail of an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme.

For loans ranging from Rs30 lakh to Rs75 lakh, the bank has cut rates by 10 basis points .

This will give a dual push both for construction finance and also for home finance for affordable homes.

“We have seen a steep hike in the home loan enquiries recently and reduction in rates will further help millions of home buyers fulfill their dream of owning a home,” Rajnish Kumar, Managing Director – NBG, SBI said.

“Individuals can apply for home loans through multiple channels. SBI offers bouquet of home loan products catering to different sections of the society.”

Sources: TOI, HT, Money Control

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