SBI Cuts Housing Loan Rate Interests

SBI Cuts Housing Loan Rate by 0.15%

The two-month festival offer is valid from November 1 to December 31

State Bank of India’s customers may find servicing new home loans relatively easier on their pocket, with the equated monthly instalment (EMI) coming down by Rs. 11 per Rs. 1 lakh loan, following the bank paring its benchmark interest rate by 0.15 percentage points.

India’s largest bank on November 2, 2016 said it has cut interest rates by 0.15% for home loans up to Rs. 75 lakh with effect from November 1, 2016 as part of its limited two-month festival offer.

This move could prompt other banks to follow suit in order to protect their market share.

The cut in home loan rate follows the bank paring its one-year marginal cost of funds-based lending rate (MCLR) by 0.15% to 8.90% with effect from November 1, 2016 from 9.05% earlier.

The revised rate of interest on home loans for women and other borrowers is now 9.10% (9.25%) and 9.15% (9.30%, respectively.

The EMI for women and other borrowers will now be Rs. 11 cheaper per Rs. 1 lakh of loan at Rs. 812 and  Rs. 816, respectively.

Saving on EMI

The bank, in a statement, said that for a home loan of Rs.  50 lakh, the reduction in interest rate by 0.15% will help a home buyer save Rs. 542 per month and about  Rs. 2 lakh during the loan tenure of 30 years.

The value of the savings on EMI ofRs. 542 per month, if invested in a recurring deposit, will be approximately Rs. 6 lakh at the end of the loan tenure, it added.

Besides the reduced interest rate, the bank said customers can also avail processing fee waiver on SBI-approved projects; online applications (through www.onlineapply.sbi.co.in); balance transfer of home loans; and for government employees under the SBI Privilege and SBI Shaurya schemes.

This interest rate reduction and processing fee waiver are part of a limited period festival bonanza, valid from November 1, 2016 to December 31, 2016.

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