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SBI Cuts Home Loan Interest Rates To 6.7%: Check All Benefits

SBI Cuts Home Loan Interest Rates To 6.7%: Check All Benefits

SBI Home Loan Interest Rates: India's largest lender has reduced the rate to 6.7 per cent

The State Bank of India (SBI) has reduced home loan interest rates to 6.7 per cent to support home loan customers so that home loans get more affordable amid the festive season. The country's largest lender is offering credit score linked home loans at 6.70 per cent - irrespective of the loan amount, according to a statement shared by the bank today. 

Earlier, a borrower availing a loan greater than Rs. 75 lack, had to pay an interest rate of 7.15 per cent, but with the introduction of the festive season-related offers, a borrower can now avail a home loan for any amount at a rate of 6.70 per cent, said SBI in its statement.

The festive season's offer results in a saving of 45 basis points (bps) which translates to an interest saving of more than Rs. 8 lack, for a Rs. 75 lack loan with a tenure of 30 years. Also, the rate of interest applicable for a non-salaried borrower was 15 bps higher than the interest rate applicable to a salaried borrower.

The state-run bank has removed the distinction between a salaried and a non-salaried borrower. This means that now there is no occupation-linked interest premium being charged to the prospective home loan borrowers. This will lead to a further interest saving of 15 bps to the non-salaried borrowers.

SBI has waived off the processing fees completely and is offering attractive interest concession based on the credit score of the borrower.

Generally, the concessional interest rates are applicable for a loan up to a certain limit and are also linked to the profession of the borrower. This time, we have made the offers more inclusive and the offers are available to all segments of borrowers irrespective of the loan amount and the profession of the borrower,'' said Mr C.S. Setty, Managing Director (Retail & Digital Banking), SBI. 

''The 6.70 per cent 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 homeownership more affordable,'' added Mr Setty. 

On Thursday, September 16, shares of State Bank of India gained more than three per cent, hitting an intra day high of Rs 458.65, so far, on the BSE. SBI opened on the BSE at Rs 445.10 and its shares were last trading 3.26 per cent higher at Rs 458.30 apiece.