SBI reduces home loan rate to lowest in 6yrs

 

In some great news for home buyers, State Bank of India (SBI) has cut interest rate for home loans by 0.15 per cent to a six-year low. The country’s largest public sector lender has cut its home loan rate to 9.1%. The rate cut comes as part of a festive scheme by SBI. Under the new scheme, home loans for women, or loans with women as co-borrowers, will be available for 20bps above the benchmark rate. This implies a rate of 9.1%. A rate of 9.15% will be applicable for other borrowers. The equated monthly instalment (EMI) for women and other borrowers will now be Rs. 11 cheaper per lakh of loan at Rs. 812 and Rs. 816, respectively. SBI, in a statement, said on a home loan of Rs. 50 lakh, the reduction in interest rate by 0.15 per cent will help a home buyer save Rs. 542 per month and approximately Rs. 2 lakhs during the loan tenure of 30 years. Value of the savings on EMI of Rs. 542 per month, if invested in a recurring deposit, will be approximatelyRs. 6 lakh at the end of the loan tenure. Over and above the reduced interest rate, the bank said customers can also avail of processing fee waiver on SBI approved projects; online applications.