MUMBAI: State Bank of India (SBI) has cut interest rates on home loans above Rs 75 lakh by 45 basis points (100bps= 1 percentage point) and has also reduced interest rates for non-salaried borrowers as part of its festive offer. The bank has said that it will offer credit score-linked home loans at just 6.7%, irrespective of the loan amount.
Earlier, the best rate for borrowers availing a loan greater than Rs 75 lakh was 7.15% with a discount of 5bps for loans with a woman borrower. With the introduction of the festive offers, a borrower can now avail home loan for any amount at a rate as low as 6.7%.
The offer results in a saving of 45bps. This translates into an interest saving of more than Rs 8 lakh for a Rs 75-lakh loan with a 30-year tenure.
Before this offer, the bank’s interest rates for loans with at least one woman borrower were 6.75% for loans up to Rs 30 lakh and 7% for loans up to Rs 75 lakh.
The bank has also done away with the interest rate differential between salaried and non-salaried borrowers if they have the same credit score. Earlier, non-salaried borrowers paid 15bps higher than the interest rate applicable to a salaried borrower.
As part of the festive offer, the bank has done away with processing fees. SBI MD (retail & digital banking) C S Setty said, “The 6.7% home loan offer is also applicable to balance transfer cases. We believe zero-processing fees and concessional interest rates in the festive season will make home-ownership more affordable.”
Last week, Kotak Mahindra Bank had said that it would offer home loans at 6.5% up to November 8 to borrowers with high credit scores. The private bank said that it would offer these rates on balance transfers as well.
