State Bank of India (SBI) has cut home loan rates by up to 0.4 per cent for new borrowers, a day after the Reserve Bank of India (RBI) kept its key policy rates on hold.
The new rates would be effective from Friday, India’s largest lender said in a statement.
SBI home loans will now be available under two slabs – under Rs 75 lakh and above Rs 75 lakh. Women borrowers would get an additional 0.05 per cent concession on card rates.
Loans of up to Rs 75 lakh would be available to fresh borrowers at 10.15 per cent against the existing rate of 10.50 per cent. For women borrowers, the rate of interest after an additional concession of 0.05 per cent would be 10.10 per cent for home loans of up to Rs 75 lakh.
With regard to loans of above Rs 75 lakh, the new rate would be 10.30 per cent. For women borrowers it is 10.25 per cent.
The revised EMI per lakh for a loan tenure of 30 years will be Rs 885 (for women) and Rs 889 (for others). The prevailing EMI for Rs 1 lakh is Rs 900 for 30 years, the bank said.
RBI in its monetary policy review on Wednesday kept short-term lending rate unchanged at 7.75 per cent while the cash reserve ratio (CRR) remained at 4 per cent.
In October, SBI had reduced interest rates on loans for car and consumer durables and also decided to lower processing charges to cash in on the festival season demand.