SBI Brings Down Home Loan Interest Rates to 6.70% with Additional Benefits

Recently, the State Bank of India, the largest lender in the country, announced its decision to reduce home loan interest rates. In such loans, it has lessened the interest rates up to 10 basis points (bps).

According to the bank, the interest rates from now on will begin from 6.70% for loans till Rs. 75 lakhs. The interest rates will be 6.75% for loan amounts that will go beyond Rs. 75 lakhs. Previously, the minimum interest rate was 6.80%.

According to the bank’s statement, it provides an overall discount of up to 70 basis points (bps), unlike any other housing finance company. The new rates will be applied based on the CIBIL (Credit Information Bureau India Limited) score of the borrower and the loan amount. However, the offer is valid only for a specific period. These rates will be available only till the end of the current month. So, home buyers interested to buy new real estate should grab this opportunity immediately to reap timely benefits. 

Borrowers can apply for loans through Yono App as well. It will give them an additional discount of 5bps. With only a few days left for International Women’s Day, the bank will also provide additional concessions of 5bps only to women borrowers. It is also important to note another thing in this context. Presently, the bank is also offering a complete 100% waiver on the processing fees. 

The background

In February 2021, SBI stated that it will double the home loan portfolio to Rs. 10 lakh crores in the next five years. This was an attempt to encourage the current generation’s growing preference for buying real estate early in their career. 

Dinesh Kumar Khara, the Chairperson, has pointed out that the bank took around a decade to expand its portfolio. While the portfolio in FY11 had amounted to Rs. 89 000 crores, today, it has reached the milestone of Rs. 5 lakh crores.

Truly being the banker to all Indians

SBI believes in offering better rates to its customers who have impressive repayment history. Being in a prominent position in the home finance sector has always supported its customers’ sentiments. Time and again, it has revised its rules and introduced policies that have reflected the public demands.

As per Saloni Narayan, the Deputy Managing Director (Retail Business), the bank is aware of the economic stress that its customers are presently suffering from. Therefore, it is reaching out to its customers in all possible ways. It is trying to give the borrowers better scope to repay their loans by lessening the interest rates. The interest rates being offered are much better than those provided by other housing finance companies.

With the economy still struggling to cope up with the changes brought by the pandemic, this news will be a boon for all homebuyers, and the current financial year will also close on a happy note. The present offering would reduce the burden of EMI and is likely to increase the borrowers’ affordability. 

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

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