- As part of a festive scheme, the State bank of India (SBI) has cut interest rates by 0.15% to 9.1%, its lowest in 6 years.
- Women borrowers or women co-borrowers will be eligible for interest rate of 9.1%, compared to 9.15% for other borrowers.
- Offer will be in effect from 1st November, 2016 to 31st December, 2016 and will cover all home loans with disbursement in a month.
DELHI: The State bank of India (SBI), the country’s largest public-sector lender has cut interest rates by 0.15% to 9.1%, effectively offering its lowest rate in 6 years. This is being done as part of a special festive scheme and will be effective from November 1st, 2016 to December 31st, 2016.
According to a statement from SBI, this cut will help home loan borrowers save Rs. 542 PM and approximately Rs. 2 Lakh on a Rs 50 Lakh loan with a tenure of 30 years. The rate cut comes right after the bank had reduced its marginal cost of funds based lending rates (MCLR) by 15 basis points last week.
Women borrowers or women co-borrowers can avail loans available for 20 basis points above the benchmark rate. This means they will be able to apply for home loans at an interest rate of 9.1% compared to 9.15% for others.
SBI has also indicated that they will waive off processing fees on SBI approved projects, online applications made through the bank’s website, balance transfers of home loans and also for government employees under the SBI Privilege & SBI Shaurya schemes.
The rate cut comes at a time when the Reserve Bank of India (RBI) has criticized banks for not passing on the benefits of rate cuts to customers, thus boosting growth. The central bank has cut the repo rate by 175 basis points since January 2015, but banks have only cut their rates by about 60 basis points.