Monday, December 18, 2017

State Bank of India lowers home loan rate, making it the lowest in the industry
Friday, November 3, 2017 - 12:01:14 AM - By News Bureau
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State Bank of India (SBI) has lowered its home loan rate by 0.05 per cent to 8.30 per cent
NEW DELHI: State Bank of India (SBI) has lowered its home loan rate by 0.05 per cent to 8.30 per cent. This makes it the lowest in the industry. The largest public lender also reduced interest rate on auto loan by a similar percentage point to 8.70 per cent.

In a statement, SBI said, "With this reduction, SBI's offering in home loan is the lowest in the market. The new rates will be effective November 1."

This reduction follows a cut in marginal cost of funds based lending rate (MCLR) a couple of days ago, which came after a gap of 10 months. The bank had last cut the rate on January 1.

The reduction in retail loan rate by SBI is expected to prompt other lenders to go in for a similar move.

The effective interest rate for all eligible salaried customers will be 8.30 per cent per annum for loans up to Rs 30 lakh. Rates have been reduced by 5 basis points (0.05 per cent) in all other loan brackets.

The statement also said, "Over and above of 8.30 per cent rate, an eligible home loan customer can also avail of an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme."

For a car loan customer, interest ranges from 8.70 per cent to 9.20 per cent compared to the earlier 8.75-9.25 per cent. The exact rate depends on the amount of loan and the credit score of the individual.

P K Gupta, SBI MD Retail Banking, was quoted in media reports as having said, "With this reduction in rates, we are offering lowest rates for most of our product offering in retail loans. Lower rates along with wide distribution network and use of digital technology to enhance customer experience is a perfect package for any retail loan customer."
P K Gupta
SBI MD Retail Banking
State Bank of India
SBI
lowered
home loan rate
by 0.05 per cent
8.30 per cent
the lowest in the industry