SBI home loan EMI to fall, bank cuts external benchmark-based rate

SBI reduced its external benchmark-based rate by 25 basis points to 7.80% from 8.05%.

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State Bank of India (SBI) on Monday reduced its external benchmark-based rate by 25 basis points to 7.80% from 8.05%.

SBI “has announced the reduction in its external benchmark-based rate (EBR) by 25 basis points to 7.80% p.a. from 8.05% p.a. with effect from January 1, 2020,” the bank said in a statement.

With this reduction, interest rate for existing home loan customers as well as micro, small and medium enterprises (MSME) borrowers who have availed loans linked to external benchmark based rate would come down by 25 basis points, it said.

The new home buyers will get loans at an interest rate starting from 7.90% p.a. compared to earlier 8.15% p.a., it said.