SBI Cuts Home Loan Interest Rates By Up To 25 Basis Points: In line with the Prime Minister’s vision of providing “Housing for All” by 2022, the country’s largest lender State Bank of India (SBI) which provide different types of home loan, has taken a big leap to give a boost to the affordable housing segment. State Bank of India (SBI), announced a reduction in its affordable home loan interest rates by up to 25 basis points, with the lowest rate of 8.35 percent for new borrowers. With this reduction in the home loan interest rate, State Bank of India(SBI) offering the lowest rate in the market. Even the existing 8.60 percent rate of interest, of State Bank of India Home Loan is also a lower rate compared to the other lenders. HDFC, the second largest lender in the nation, offers home loans at 8.65 percent for loans up to Rs. 75 lakhs and 8.70 percent for others.
Further, eligible home loan customers can also avail of an interest subsidy of Rs. 2.67 lakhs under the Pradhan Mantri Awas Yojana scheme. SBI has also reduced interest rates for customers availing home loan above Rs. 30 lakhs. For supplementing the affordable home loan push, State Bank of India (SBI) has come out with also a special offer for construction finance for builders for affordable housing projects. It will also give a dual push for both the construction finance and also for home finance for affordable homes.
The Managing Director of State Bank of India for national banking, Rajnish Kumar said. “This is a huge saving for the new borrower as the 25 basis points reduction into a saving of Rs. 530 per month on EMI”. For explaining the reason behind this move, which makes its offering the lowest in the industry, Rajnish Kumar also said that the bank has seen a hike in the home loan enquiries of late and reduction in interest rates will further help millions of buyers to fulfill their dream of owning a home. Also, the bank expects that the new interest rates will attract the fence-sitting borrowers to go in for a loan now.