SBI cuts mortgage interest rates to 6.70%
New Delhi: India’s largest lender, State Bank of India (SBI), has reduced mortgage interest rates and now offers exclusive mortgage interest rates starting at 6.70%. Women borrowers benefit from a special concession of 5 basis points. According to the bank, customers can apply for a loan from the comfort of their own home through YONO spp to obtain an additional interest concession of 5 basis points.
CS Setty, MD (Retail & Digital Banking) said, âSBI, as the market leader in real estate finance, takes responsibility for strengthening consumer sentiment in the mortgage market. Affordability for the consumer is increasing tremendously with the current mortgage interest rate offers which dramatically reduce EMI amounts. I am sure that these measures will also give a boost to the real estate industry “.
SBI home loan interest rates start at 6.70% for loans up to Rs 30 lakh and 6.95% for loans over Rs 30 lakh and up to 75 lakh. Expensive loans above Rs. 75 lakh would get 7.05% home loans, the bank said in a statement.
SBI is the largest commercial bank in terms of assets, deposits, branches, customers and employees. It also claims to be the largest mortgage lender in the country. SBI has over 34% market share in home loans and around 33% in the auto loan segment, according to the lender.
The bank’s mortgage portfolio has crossed the Rs. 5 lakh crore mark, says SBI. The bank has an auto loan book of Rs. 75,937 crore, as of December 31, 2020 the bank had a deposit base of over Rs. 35 lakh crore and advances of over Rs. 26 lakh crore with CASA ratio of d ‘about 45%.
Last month, the SBI said it had not raised interest rates on home loans, dismissing media reports that said otherwise. In a statement, the lender said the special, limited-time concession offered during the holiday season ended on March 31, 2021, after which mortgage interest rates returned to normal.
“Over the past few days, there have been reports in the press, including the media, regarding the rise in interest rates on SBI home loans. In this regard, we clarify that the special limited-term concessions offered during the holiday season ended on March 31, 2021. and subsequently withdrawn, âthe SBI said in a statement.