SBI Cuts Home Loan Interest Rate
New Delhi: State Bank of India (SBI) on Sunday announced a cut in its home loan interest rate by up to 25 basis points, or 0.25 per cent, for new borrowers.
For women borrowers, the rate has been aligned to the base rate of 9.85 per cent per annum, SBI, the country's largest lender, said in a statement.
However, for other borrowers, the interest rate will be 9.90 per cent - five basis points higher than the base rate or the minimum lending rate.
The rates will be applicable for all new home loans sanctioned on or after April 13, the statement said.
The SBI announcement comes two days after HDFC Ltd, the country's largest mortgage firm, reduced home loan rate by 0.2 per cent to 9.9 per cent for new as well as existing borrowers.
(Read: HDFC cuts home loan rate)
"Interest rate on the bank's home loans was 10.10 per cent for Women under 'HER Ghar' and 10.15 per cent for others," SBI said.
To avail of the benefit, women borrowers should be sole applicants or first of the co-applicants and also the sole/first co-owners of the property, it said.
The interest rate for SBI's existing floating rate home loan borrowers has also been reduced to the extent of reduction in the bank's base rate to 9.85 per cent effective April 10.
The revised EMI per lakh for a loan tenure of 30 years will be Rs 867 (for women under HER Ghar) and Rs 871 (for others) as against Rs 885 and Rs 889 respectively, prior to reduction in base rate, it added.
Last week, many banks including SBI, ICICI Bank, HDFC Bank and Axis Bank cut lending rates by up to 0.25 per cent after Reserve Bank of India Governor Raghuram Rajan's tough talk with bankers on the issue.
After cutting the policy rate twice this year, the central bank kept it unchanged at 7.5 per cent in its monetary policy on April 7. The RBI had blamed banks for not passing the benefits of two repo rate cuts to borrowers and termed as "nonsense" the lenders' claims that cost of fund was high.
"The banks marginal cost of funding (has) fallen, the notion that it hasn't fallen, is nonsense; it has fallen," Mr Rajan had said.
