The State Bank of India on Monday slashed interest rates on home loans for new borrowers. For affordable housing loans (under Rs 30 lakh), rates have been reduced by 25 basis points to 8.35%, while for loans above Rs 30 lakh, the interest rates are down by 10 basis points.
The new rates will come into effect on Tuesday. “This a huge saving for the borrower as the 25 bps reduction translates into a saving of Rs 530 per month on EMIs,” SBI Managing Director Rajnish Kumar told PTI. Besides, eligible home loan customers can also avail of an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme.
Kumar claimed that SBI’s new offer is the lowest rate in the country. He said the cut is to boost the affordable housing segment. The rate cut is in line with Prime Minister Narendra Modi’s vision of providing housing for all by 2022, Kumar added. “We have seen a steep hike in the home loan enquiries recently and reduction in rates will further help millions of home buyers fulfil their dream of owning a home,” he said, according to Moneycontrol.