Real estate news on SBI cuts home loan rate by 15 bps

Price Trends, Property loans/ Home loans, State Bank of India (SBI), Home Loan
Posted on Nov 03, 2016
State Bank of Indias customers may find servicing new home loans relatively easier on their pocket, with the equated monthly instalment (EMI) coming down by Rs. 11 per ₹1 lakh loan, following the bank paring its benchmark interest rate by 0.15 percentage points.

Indias largest bank on Wednesday said it has cut interest rates by 0.15 percentage points for home loans up to Rs.75 lakh with effect from November 1 as part of its limited two-month festival offer.

This move could prompt other banks to follow suit in order to protect their market share.

The cut in home loan rate follows the bank paring its one-year marginal cost of funds-based lending rate (MCLR) by 0.15 percentage points to 8.90 per cent with effect from November 1 from 9.05 per cent earlier.

The revised rate of interest on home loans for women and other borrowers is now 9.10 per cent (9.25 per cent earlier) and 9.15 per cent (9.30 per cent), respectively.

The EMI for women and other borrowers will now be Rs. 11 cheaper per Rs. 1 lakh of loan at Rs. 812 and Rs. 816, respectively.

Saving on EMI
The bank, in a statement, said that for a home loan of ₹Rs. 50 lakh, the reduction in interest rate by 0.15 percentage points will help a home buyer save Rs. 542 per month and approximately Rs. 2 lakh during the loan tenure of 30 years.

The value of the savings on EMI of Rs. 542 per month, if invested in a recurring deposit, will be approximately Rs. 6 lakh at the end of the loan tenure, it added.

Besides the reduced interest rate, the bank said customers can also avail processing fee waiver on SBI-approved projects; online applications, balance transfer of home loans; and for government employees under the SBI Privilege and SBI Shaurya schemes.

This interest rate reduction and processing fee waiver are part of a limited period festival bonanza, valid from November 1 to December 31, 2016.

Share on: