SBI slashes home loan rates by 10 basis points

State Bank of India (SBI) has slashed interest rates on home loans by 10 basis points (bps) under its limited period offer till month-end. The revised rates will start from 6.7 per cent and be linked to the CIBIL credit score. The borrower with a higher CIBIL score will be offered a lower interest rate. For home loans up to ~75 lakh, the rate is 6.9 per cent for a CIBIL score between 700 and 750; for a score between 751 and 800, it is 6.8 per cent and for above 800, interest will be 6.7 per cent.

State Bank of India (SBI) has slashed interest rates on home loans by 10 basis points (bps) under its limited period offer till the month-end.

The revised rates will start from 6.7 per cent and be linked to the CIBIL credit score. The borrower with a higher CIBIL score will be offered a lower interest rate.

For home loans up to ~75 lakh, the rate is 6.9 per cent for a CIBIL score between 700 and 750; for a score between 751 and 800, it is 6.8 per cent and for above 800, interest will be 6.7 per cent. “This floor rate is 10-bps lower than the last best offer,” said Saloni Naryan, deputy managing director (retail business), SBI.

The rates will start at 6.75 per cent for loans above ~75 lakh and increase with a lower CIBIL score.

“It is important to extend better rates to customers who maintain good repayment history. The affordability for the consumer increases immensely with the present offerings as EMI will be reduced,” she said.

Customers can also apply from their homes via the YONO App to get additional interest concession of 5 bps. On the eve of International Women’s Day, a special 5 bps concession is being made available to women borrowers.

Narayan said in January 2020, SBI’S home loan portfolio had touched the ~5-trillion mark. Home loan sanctions have crossed ~1 trillion this year. Home loan, which constitutes 23 per cent of a bank’s domestic advances, has grown by 9.99 per cent year-on-year (YOY) till December 2020. The bank is aiming to double that to ~10 trillion in five years. Last month, SBI chairman Dinesh Khara had said the bank is expecting its home loan portfolio to touch ~7 trillion by financial year 2023-24 (FY24).

The growth would be driven by increased desire among the youth to own homes early in life, rising incomes, and government policies like cuts in stamp duty and subsidy, Khara had said.

The rates will start at 6.75% for loans above ~75 lakh and increase with a lower CIBIL score