SBI has cut home loan rates to a 9.1% -the lowest in six years -as part of a festive scheme. The rate cut comes on the back of a general interest rate reduction last week when SBI reduced its benchmark rates by 15 basis points (bps, 100bps = 1percentage point).
In terms of the festival scheme, home loans for women (or loans with women as co-borrowers) will be available for 20bps above the benchmark rate, which translates into 9.1%. For all other borrowers, home loans will be available at 9.15%. The festival rates will be available for loans sanctioned in November and December 2016 and where disbursement is taking place in a month. In addition to rate reduction, the bank has waived off all processing fees.
SBI MD Rajnish Kumar to another news source said, “The rate cut will bring down the equated monthly instalment on a Rs 50-lakh loan by Rs 542 per month. Since March, the EMI has come down by over Rs 1,500.” With this reduction, SBI’s cheapest home loans are now 20bps lower than ICICI Bank and HDFC’s cheapest home loan rate of 9.3%.