SBI Reduces Affordable Home Loan Rates… But How Much?

Good news for SBI customers…! On Monday, SBI (State Bank of India—a public sector bank) reduced its home loan rates by 25 bps (basis points) to 8.35% p.a. (per annum). This new rate will come into effect from 9 May, 2017. This overall “reduction” decision by SBI has made as the lowest offering bank in the market.

SBI Reduces Affordable Home Loan Rates… But How Much?

The interest rate that will be implemented for specific salaried customers that are eligible for loans up to Rs 30 Lakh will be 8.35% p.a. SBI further mentioned that overall an eligible home loan customer could further take benefit of an interest subsidy under the Pradhan Mantri Awas Yojana scheme of up to Rs 2.67 Lakh. The move is further expected to give a push to the government’s Housing for All scheme and also support and encourage people to highly invest in affordable housing schemes.

Not only this, but customers taking more than Rs 30 Lakh home loan will also enjoy reduced interest rates. SBI has also taken care of builders too. SBI has some unique and special offers to the builders for construction finance supporting projects regarding affordable housing scheme, thus complementing the affordable housing step. According to the bank, this move will surely give a dual push to both construction finance and also home finance for affordable homes.

Below are some of the features of the home loan offer:

  • The new reduced rate of 25% for women will be for the salaried women and that for the non-salaried women, it will be 20 bps reduction.
  • The validity of this limited period offer is 31 July, 2017. The rate cut is 20 bps to 8.40% for male borrowers.
  • For males, non-salaried and salaried, same rates will be applicable.

Rajnish Kumar—Managing Director of SBI National Banking Group—further said that they have recently noticed an abrupt increase in the home loan enquiries and further reducing the rates will in turn lend a helping hand to millions of people dreaming of owning a home; thus, fulfilling their dream. Moreover, individuals can apply through various channels for home loans.