Business
SBI cuts home loan interest rate by up to 0.25 percent
New Delhi, April 12
State-run State Bank of
India on Sunday cut its home loan interest rate by 0.25 percent -- or up
to 25 basis points -- for new borrowers while for women borrowers the
rate has been aligned to the base rate of 9.85 percent per annum.
The
SBI also said in a statement that for other borrowers, the interest
rate will be 9.90 percent -- five basis points higher than the base, or
the minimum, lending rate.
The rates will be applicable for all new home loans sanctioned on or after April 13, the statement added.
"Interest rate on the bank's home loans was 10.10 percent for Women under 'HER Ghar' and 10.15 percent for others," SBI said.
The
interest rate for the bank's existing floating rate home loan borrowers
has also been reduced up to the reduction in the bank's base rate to
9.85 percent effective April 10.
The revised EMI per lakh for a
loan of 30 years will be Rs.867 for women under 'HER Ghar' and Rs.871
for others, as against Rs.885 and Rs.889, respectively, earlier, SBI
said.
HDFC Ltd had on Friday reduced its home loan rate by 0.2 percent to 9.9 percent for both new and existing borrowers.
Last
week, many banks including SBI, ICICI Bank, HDFC Bank and Axis Bank cut
their lending rates by up to 0.25 percent, following Reserve Bank of
India Governor Raghuram Rajan's message to bankers on the matter.
While
keeping the RBI interest rate unchanged at 7.5 percent in its monetary
policy on Tuesday, Rajan said he was waiting also for the commercial
banks to pass on the benefits of two repo rate cuts to borrowers and
described as "nonsense" the banks' claims that the cost of funds was
high.
"The banks' marginal cost of funding has fallen. The notion
that it hasn't fallen, is nonsense... it has fallen," Rajan had said.