SBI cuts interest rates on home loans

Representational image.   | Photo Credit: Reuters

State Bank of India (SBI) said it will provide credit score-linked home loans at 6.70%, irrespective of the loan amount, to home buyers during the festive season.

Earlier, a borrower availing a loan greater than ₹75 lakh had to pay interest at 7.15%. “With the introduction of the festive offers, a borrower can now avail home loan for any amount at a rate as low as 6.70%. The offer results in a saving of 45 bps (basis points) which translates into a huge interest saving of more than ₹8 lakh, for a ₹75-lakh loan with a 30-year tenure,” SBI said in a statement.

Further, the rate of interest applicable for a non-salaried borrower was 15 bps higher than the interest rate applicable to a salaried borrower. SBI has removed this distinction between a salaried and a non-salaried borrower.

Now, there is no occupation-linked interest premium being charged to prospective home-loan borrowers. This would lead to a further interest saving of 15 bps to non-salaried borrowers, it said.

The lender has waived processing fee completely and offered interest concession based on the credit score of the borrower.

“The 6.70% home-loan offer is also applicable to balance transfer cases,” said C.S. Setty, MD (retail and digital banking), SBI. “We believe zero processing fees and concessional interest rates in the festive season will make home ownership more affordable.”

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Printable version | Oct 27, 2021 4:59:00 PM |

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