SBI Makes Home Loans Under Rs 30 Lakh Cheaper, Lowest in Market Now
India's largest lender SBI on Monday announced a steep reduction of 25 basis points in affordable housing loans to 8.35 per cent for new borrowers.
File image (Photo: Reuters)
Mumbai: The State Bank of India (SBI) on Monday announced a steep reduction of 25 basis points in affordable housing loans to 8.35 per cent for new borrowers. Loans under Rs 30 lakh qualify for affordable housing.
With this reduction, SBI's offering is the lowest in the market. The new rate will be effective from May 9, 2017, moneycontrol.com reported.
"This a huge saving for the borrower as the 25 bps reduction translates into a saving of Rs 530 per month on EMIs," SBI Managing Director for national banking, Rajnish Kumar, told PTI.
"This is giant leap to give a fillip to the affordable housing segment keeping the Prime Minister's vision of providing 'housing for all' by 2022," Kumar said, adding that the lender now offers the lowest rates in the industry. With a home loan book of Rs 2.23 trillion, SBI leads the segment with 25-26 per cent market share, Kumar said further.
However, he is of the view that the new offer may not push up its market share significantly as 45 per cent of its Rs 2.23 trillion home loan book is under Rs 30 lakh bracket.
(With PTI inputs)
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