State Bank of India cuts home loan rates by 6.70 percent during the festive season

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Keeping in view the upcoming festive season, the leading public sector bank State Bank of India will offer home loans to its customers at concessional interest rates. The country’s largest lender announced various festive offers for potential home loan customers, including credit score-linked home loans starting at 6.70 per cent, irrespective of the loan amount.

Earlier, a home loan borrower above Rs 75 lakh had to pay an interest rate of 7.15 per cent. The bank said that with the introduction of the new offer, a borrower can now avail a home loan at the rate of 6.70 per cent for any amount. This will result in savings of 45 basis points (bps), which translates to interest savings of over Rs 8 lakh for a loan of Rs 75 lakh with a tenure of 30 years. A non-salaried home borrower was 15 bps higher than the interest rate applicable to a salaried borrower.

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The lender has removed this distinction between a salaried and non-salaried borrower. Now, no business-linked interest premium is being charged from prospective home loan borrowers, adding that this will lead to further interest savings of 15 bps to non-salaried borrowers, the release said. He said that 6.70 per cent home loan offer is also applicable on balance transfer cases. The lender said it has waived the processing fee. Setty said zero processing fee and concessional interest rates in the festive season will make home ownership more affordable.

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