SBI Lowers Interest Rate on Home Loans

New Delhi: State Bank of India (SBI), the country's largest lender, on Tuesday slashed home loan rates by up to 0.15 per cent and removed the slab for advances, a development which will have bearing on mortgage rate of other lenders. Home loan of any amount would now be available at 10.15 per cent whereas for women borrowers, the rate of interest would be 10.10 per cent, SBI said in a corrected press statement. The base rate, or the minimum lending rate below which the bank cannot lend, is 10 per cent. SBI has now removed two home loan slabs - under Rs 75 lakh and above Rs 75 lakh. "It has now been decided to offer uniform interest rate on home loans with effect from August 26, irrespective of the loan amount," it said. So, as per the statement, the concessional 0.05 per cent interest rate has been maintained for the women borrower provided that she is the sole applicant or the first of the co-applicants and also the sole or the first of the co-owners of the property. Meanwhile, the bank has decided to designate Praveen Kumar Gupta as the deputy managing director and chief financial officer. Previously, interest rates on home loans were revised downwards on December 20, 2013 with a separate interest rate structure for woman borrowers at 10.10 per cent (on loans up to Rs 75 lakh) and 10.25 per cent (on loans above Rs 75 lakh) too, it said. In the August review of monetary policy, the Reserve Bank of India (RBI) kept short-term lending rate unchanged at 8 per cent, while the cash reserve ratio (CRR) remained at 4 per cent citing upside risks to inflation in view of uncertain monsoon and its impact on food production as also volatile international oil prices. In order to infuse additional liquidity, the RBI decreased SLR for banks by 0.50 per cent to 22 per cent with effect from the fortnight beginning August 9. A similar move in June had released an additional Rs 40,000 crore into the system.

SBI Lowers Interest Rate on Home Loans

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