By Accommodation Times News Services
India’s largest lender, State Bank of India (SBI), reduced its home loan rates to offer uniform interest rate on home loans. On 26th August, Tuesday bank revised its interest rates on home loans. Now the bank will offer uniform interest rates irrespective of the loan amount, they will offer home loans at an interest of 10.15 per cent to home loan borrowers, as per an SBI statement.
Earlier, the interest rates stood at 10.15 per cent on loans up to Rs. 75 lakh and 10.30 per cent on those above Rs. 75 lakh and women were charged 10.10 per cent on loans up to Rs. 75 lakh and 10.25 per cent on loans above Rs. 75 lakh. Now Women borrowers will be offered loans at 10.10 per cent across all loan amounts.
“It has now been decided to offer uniform interest rate on Home Loans w.e.f. 26th August, 2014, irrespective of the loan amount,” SBI statement said.
SBI’s base rate or minimum lending rate is at 10 per cent. Previously, the interest rates on SBI home loans were reduced on December 20, 2013 with a separate interest rate structure rolled-out for woman borrowers, the bank said.
Also two other leading banks have brought down their rates Punjab National Bank and HDFC Bank. Punjab National Bank too is now offering home loans of up to Rs 2 crore at 10.25 percent. For those above Rs 2 crore, customers are to be charged 10.50 percent. Earlier, the bank charged 10.25 percent interest for loans of up to Rs 75 lakh and 10.50 percent for the loans above that amount.
Whereas, HDFC has reduced interest rate on loans above Rs 75 lakh to 10.15% under its monsoon bonanza scheme, which is valid until the end of this month.
The reduction in home loan interest rate are welcomed after the Reserve Bank of India (RBI), in its monetary policy announcement on 5 August, decided to keep its repurchase rate unchanged, but reduced the statutory liquidity ratio (SLR), or the portion of deposits that banks must invest in government bonds, by half a percentage point to 22% to free up funds for lending when credit growth picks up.