New Delhi, May 8: The State Bank of India (SBI) has cut interest rates for home loans effective from May 9. The rates have been cut by 25 basis points to 8.35% for home loans under Rs 30 lakh, and for loans above Rs 30 lakh, interest rates have been reduced by 10 basis points.
"We have seen a steep hike in the home loan enquiries recently and reduction in rates will further help millions of homebuyers fulfill their dream of owning a home," SBI managing director for national banking, Rajnish Kumar said.
"This a huge saving for the borrower as the 25 bps reduction translates into a saving of Rs 530 per month on EMIs. Individuals can apply for home loans through multiple channels. SBI offers a bouquet of home loan products catering to different sections of the society,” he said.
“This is a giant leap to give a fillip to the affordable housing segment keeping the prime minister’s vision of providing ‘housing for all’ by 2022,” Kumar said, adding that the lender now offers the lowest rates in the industry.
With a home loan book of Rs 2.23 trillion, SBI leads the segment with 25-26% market share, Kumar said further. In April, SBI had reduced its base rate to 9.10% effective compared to 9.25% earlier.