Mumbai: India’s biggest bank, the State Bank of India (SBI), has cut interest rates on home loans. For low-cost home loans (loans under Rs 30 lakh) the rates have been cut by 25 basis points to 8.35%. For loans above Rs 30 lakh, SBI has cut interest rates by 10 basis points. The new rate which is for salaried customers has been made effective from today.
Last month, SBI reduced its base rate to 9.10% effective compared to 9.25% earlier. In January, SBI cut its marginal cost of funds-based lending rate (MCLR) across all tenors by 90 basis points, the steepest cut in several years.
“The effective interest rate for all eligible salaried customers will be 8.35%p.a. for loans upto ₹. 30 lakhs. Over and above, an eligible home loan customer can also avail of an interest subsidy of ₹. 2.67 lacs under the Pradhan Mantri Awas Yojana scheme. ,” SBI said in a statement.
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Rajnish Kumar, Managing Director, SBI said, “We have seen a steep hike in the Home Loan enquiries recently and reduction in rates will further help millions of home buyers fulfill their dream of owning a home. Individuals can apply for Home Loans through multiple channels.”