State Bank of India (SBI) on Saturday announced that it has slashed its home loan interest rates. Now, customers can get home loans at an interest rate starting from 6.7% per annum for loans up to Rs 30 lakh. For loans above Rs 30 lakh to Rs 75 lakh, the interest rate is fixed at 6.95%. Those who apply for home loans above Rs 75 lakh, will get a interest rate of 7.05%, the bank mentioned. The new rates will be effective from May 1, India’s largest lender said.
Further, women borrower are eligible for a special concession of 5 bps on home loan interest rates. Individuals applying a home loan via the YONO App will receive an additional interest concession of 5 bps, the bank mentioned.
This move aims to to improve the affordability of prospective home loan customers, State Bank of India said.
“SBI, being the market leader in home finance, assumes the ownership in bolstering consumer sentiments in the home loan market. The affordability for the consumer increases immensely with the present home loan interest rate offerings which reduce the EMI amounts substantially," said C S Setty, managing director (Retail & Digital Banking).
“I am sure these measures will give a fillip to the real estate industry too,” he further mentioned.
“With the latest reduction announced by SBI, home loan rates are once again at a historic low. Needless to say, the move will encourage people, particularly fence-sitters, to finally take a call and book their dream homes," Dhruv Agarwala, Group chief executive officer, Housing.com, Makaan.com & PropTiger.com said.
In April, SBI had revised its home loan rates, starting from 6.95%. The home loan portfolio of the bank has crossed the milestone of Rs 5 lakh crore. It is the largest mortgage lender in the country. SBI commands over 34% market share in home loans, the lender said.
“As SBI is the largest lender in the country and also a trend setter in many ways, other banks have started following suit and it is likely that many more HFCs will also do the same in the coming days, which is in line with the government’s and RBI’s strategy to boost the real estate sector," Agarwala mentioned.