SBI Home Loan Rate Cut: SBI cuts home loan interest rate to 6.7%, waives processing fees and incentivizes self-employed borrowers

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The State Bank of India (SBI) has announced that as part of its end of year holiday offer, it will offer home loans linked to credit rating at 6.7% regardless of the loan amount. According to a press release issued by SBI on September 16, previously, a borrower with a loan above Rs 75 lakh, had to pay an interest rate of 7.15%; now, with the introduction of festive offers, a borrower can avail a home loan for any amount at a rate as low as 6.7%.

“The offer results in a saving of 45 basis points, which translates into a huge interest saving of over Rs. 8 lac, for a loan of Rs. 75 lac with a term of 30 years,” says the press release.

In addition, the interest rate applicable to a non-salaried borrower was 15 basis points higher than the interest rate applicable to a salaried borrower. SBI said it removed this distinction between a salaried borrower and a non-salaried borrower. “Now, no occupation-related interest premium is charged to potential borrowers for a home loan. This would result in an additional interest savings of 15 basis points for non-salaried borrowers,” the bank said.

The lender has also waived processing fees completely and will offer an interest reduction based on the borrower’s credit rating.

“This time we have made the offers more inclusive and the offers are accessible to all tranches of borrowers regardless of the loan amount and the borrower’s profession. The 6.70% home loan offer is also applicable to balance transfer cases. processing fees and preferential interest rates during the holiday season will make home ownership more affordable,” said CS Setty, Managing Director (Retail & Digital Banking), SBI.

“ANAROCK’s latest research reveals that the highest demand is currently in the premium segment, where properties are priced at Rs 80 lakh and above. online learning centers.This loan rate will not limit which cities will benefit – in previous concessional rates limited to budget housing, only Tier 2 and Tier 3 cities could truly benefit.With this democratized interest rate , SBI is also responding to the huge demand for housing in metros, coinciding with the start of the holiday season.This year, we are likely to see a significant improvement in traction in the housing segment during this period. processing fee waiver and occupancy related interest premium are additional levels of savings.Cumulatively, this package is the most attractive offer ever pr opposed by a housing lender and it is reasonable to expect other lenders to follow in SBI’s footsteps in order to remain n competitive,” said Anuj Puri, Chairman of ANAROCK Group.

The bank also cut its base rate and prime rate. According to the SBI website, effective September 15, 2021, the SBI’s base rate will be 7.45% and its prime rate will be 12.2%.

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