SBI BRINGS HOME LOAN RATE TO INDUSTRY LOW OF 8.30%
Largest public lender State Bank of India (SBI) on Thursday lowered home loan rate by0.05% to 8.30%, the lowest in the industry. It has also reducedtheautoloanbyasimilar percentage point to 8.70%.
Thereductionintheretailloan ratebySBIisexpectedtoprompt other lenders to go for a similar move.
“With this reduction, SBI’s offering in home loan is the lowest in the market. The new rates willbeeffective1November,”SBI said in a statement.
The reduction follows a cut in marginal cost of funds based lending rate (MCLR) two days ago, which came after a gap of 10 months.
The bank had last cut the rate on January 1. On the rate reduction, PK Gupta, MD, retail banking, SBI, said: “With this reduction in rates, weareoffering lowest rates for most of our product offering in retail loans. ”
The effective interest rate for all eligible salaried customers willbe8.30%perannumforloans up to ₹30 lakh. Rates have been reduced by 5 basis points (0.05%) in all other loan brackets. “Over and above of 8.30% rate, an eligiblehomeloancustomercanalso avail of an interest subsidy of ₹2.67 lakh under the Pradhan Mantri Awas Yojana scheme,” the statement said.
Foracarloancustomer,interest ranges from 8.70% to 9.20%, compared to the earlier 8.75-9.25%. The exact rate depends on the amount of loan andthecreditscoreoftheindividual, it said.
NEWDELHI: