State Bank of India, the country's largest lender, on Monday reduced its interest rate on home loans up to Rs 75 lakh to 6.70 per cent, its lowest interest rate on home loans on record. Interest rate on home loans between Rs 75 lakh - Rs 5 crore have been reduced to 6.75 per cent, SBI said in a press release. Meanwhile, the bank is also offering 100 per cent waiver on loan processing fees. Women borrowers will get an additional concession of 5 basis points on the interest rate, SBI added.
"The country's largest lender, State Bank of India (SBI) has sweetened the offers on Home Loans and now offers interest concession of upto 70 bps with interest rates starting from 6.70 per cent onwards (limited period offer ending on 31st March '21). The lender is also giving 100 per cent waiver on processing fees. The interest concessions are based on loan amount and CIBIL score of the borrower. SBI believes that it is important to extend better rates to customers who maintain good repayment history," SBI said in a press release.
Customers can also apply from the ease of their home via YONO App to get additional interest concession of 5 basis points. On the eve of International Women's day, a special 5 basis points concession is being made available to the women borrowers.
"Our customers have complete trust in us because of our total transparency. The reduced interest rates are one of the best interest rates in home loans anyone can wish for," Saloni Narayan, DMD (retail business) at SBI said in a statement.
Following the interest rate reduction announcement, State Bank of India shares traded 1.14 per cent higher at Rs 395, in-line with the Sensex which was up over 1 per cent.