Here are 10 things to know about SBI's latest announcement on loans:
Under the new rule, SBI will charge a premium of 15 basis points for home loans up to Rs 30 lakh for salaried class borrowers. That means the effective home loan rate will be 8.20 per cent, according to bank's website- sbi.co.in.
For home loans between Rs 30 lakh and Rs 75 lakh for salaried class, 40 basis points of premium will be changed. That means the effective rate will be 8.45 per cent.
SBI said a premium of 15 basis points will be added to the card rate for non-salaried borrowers in case of home loans, according to SBI.
A concession of 5 basis points on home loan rates will be given to woman borrowers, the bank said.
The lender said it has voluntarily decided to extend the external benchmark-based lending to medium enterprises also, in order to boost lending to the MSME (Ministry of Micro, Small and Medium Enterprises) sector.
The Reserve Bank of India (RBI) has time and again urged banks to transmit the benefit of lower interest rates to the consumer.
Earlier this month, the central bank mandated banks to link certain loans to the external benchmark based interest rate from October 1, in a bid to allow faster transmission of its rate cuts to consumers.
SBI - which had introduced floating rate-based home loans from July 1, 2019 - said it has made some modifications in the scheme effective October 1, 2019, to comply with the latest regulatory guidelines.
RBI has reduced the repo rate by a total 110 basis points (1.1 percentage point) in four consecutive bi-monthly reviews so far this year.
The RBI will announce the next monetary policy for 2019-20 on October 4.