SBI cuts mortgage rates up to 30 lakh to 6.7%
The State Bank of India (SBI) has reduced the minimum interest rate at which its home loans up to 30 lakh will start from 6.95 percent to 6.70 percent.
The new interest rate takes effect on May 1, 2021.
The reduction in the mortgage rate comes exactly one month after the bank raised the minimum mortgage interest rate by 25 basis points (bps) from 6.70% to 6.95%.
For home loans over ₹ 30 lakh and up to ₹ 75 lakh, the interest rate will start at 6.95 percent. For expensive home loans over 75 lakh, the interest rate will be 7.05%, India’s largest bank said in a statement.
SBI said women borrowers would get a special concession of 5 basis points (bps). In addition, a 5 basis point concession is offered as a digital incentive to clients who apply for home loans through the YONO digital banking platform. A basis point is equal to one hundredth of a percentage point.
CS Setty, MD (Retail & Digital Banking) said, “Affordability for the consumer is increasing dramatically with current mortgage interest rate offers, which dramatically reduce EMI (equivalent monthly payment) amounts. I am sure that these measures will also give a boost to the real estate sector. ”
SBI had raised the minimum interest rate on real estate loans by 25 basis points (bps) from 6.70% to 6.95% as of April 1, 2021.
After SBI raised the minimum interest rate at which it will offer home loans last month, Kotak Mahindra Bank, in a statement released on April 12, 2021, said it will maintain its special interest rate on loans. real estate by 6.65% per year.
“In the interest of consumers and on the back of strong demand trends, Kotak continues to offer perhaps the lowest mortgage interest rate in the market,” the statement said, adding that the rate is applicable to all loan amounts.
“New home loan applicants and balance transfer cases are eligible for interest rates starting at 6.65% per annum. Interest rates are linked to the credit rating of borrowers and the loan-to-value ratio, ”added Kotak Mahindra Bank.