SBI cuts home loan rate by up to 0.15 pc

Tags: News
Country's largest bank SBI today slashed home loan rate by up to 0.15 per cent on housing loan, a move likely to be followed by other lenders.

Home loans of up to Rs 75 lakh would now be available to fresh borrowers at 10.10 per cent against the existing rate of 10.15 per cent, State Bank of India (SBI) said in a statement.

The bank has removed the additional concession of 0.05 per cent given to women borrowers earlier and has brought in uniformity to all borrowers.

With regard to loans of above Rs 75 lakh, the new rate would be 10.15 per cent from the existing rate of 10.15 per cent, down by 0.15 per cent.

"It has now been decided to offer uniform interest rate on home loans with effect from August 26, irrespective of the loan amount," it said.

SBI home loans is available under two slabs -- under Rs 75 lakh and above Rs 75 lakh.

Previously, the interest rates on home loans were revised downwards on December 20, 2013 with a separate interest rate structure for woman borrowers at 10.10 per cent (on loans up to Rs 75 lakh) and 10.25 per cent (on loans above Rs 75 lakh) too, it said.

In the August review of monetary policy the RBI kept short-term lending rate unchanged at 8 per cent, while the cash reserve ratio (CRR) remained at 4 per cent citing upside risks to inflation in view of uncertain monsoon and its impact on food production as also volatile international oil prices.

Subsequently, the bank rate was retained at 9 per cent.

In order to infuse additional liquidity, RBI decreased SLR for banks by 0.50 per cent to 22 per cent with effect from the fortnight beginning August 9. A similar move in June had released an additional Rs 40,000 crore into the system.

EDITORIAL OF THE DAY

  • After the stirring poll triumphs, Modi needs to return to the drawing board

    Having bagged the biggest and most populous state, Uttar Pradesh, prime minister Narendra Modi, will now have to get back to the drawing board to rust

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Cut & Thrust: A DANGEROUS NEW GREAT GAME

Push the enemy into an unreal world, one where he ...

Ananda Majumdar

Pitfalls of handing a walkover

Congress workers in Lucknow are said to be behind posters, ...

Zehra Naqvi

Creativity springs from being open to experimentation

When Albert Einstein published his first revolutionary paper on the ...