ECONOMY

SBI Lowers Home Loan Rates For Some Borrowers

State Bank of India said it would cut home loan rates for certain borrowers during the festive season to boost demand.

India’s largest lender, according to a statement, will provide a 45-basis-points cut for borrowers seeking home loans above Rs 75 lakh.

Loans worth Rs 75 lakh and above would attract interest rates starting from 6.7% during the festive period compared with 7.15% earlier. Loans below Rs 75 lakh will continue to see interest rates starting at 6.7%.

“The 6.70% home loan offer is also applicable to balance transfer cases,” CS Setty, managing director, SBI, was quoted as saying in the statement.

SBI has also removed the 15-basis-points premium it charged non-salaried customers for home loans.

“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 basis points to non-salaried borrowers,” the statement read. The state-owned lender has also done away with processing fee on home loans during this festive period.

On Sept. 9, Kotak Mahindra Bank had kicked off the festive season rush by offering home loans starting at 6.5%, the lowest available rates currently. Its reduced interest rates will applicable between Sept. 10 and Nov. 8, the bank had said.

Lower policy interest rates, ample liquidity and a clamour by banks to gain share in the relatively stable home loan market have prompted a sharp decline in lending rates in the industry since 2018.

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