State Bank of India (SBI) has slashed interest rates on home loans to just 6.70%, which is one of the lowest in the industry.
New Delhi: State Bank of India (SBI) has slashed interest rates on home loans to just 6.70%, which is one of the lowest in the industry, as part of festive season offers. The state-owned lender is offering home loans at a 6.70% interest rate to all customers irrespective of the loan amount.
In another home loan offer, SBI is allowing borrowers all borrowers to apply for home loans at just 6.70% interest rate. This means that even non-salaried borrowers, who used to pay 15 bps higher than the interest rate applicable to a salaried borrower, will also get home loans at just a 6.70% interest rate.
“We are pleased to launch the festive offer for our prospective home loan customers. Generally, the concessional interest rates are applicable for a loan up to a certain limit and are also linked to the profession of the borrower. This time, we have made the offers more inclusive and the offers are available to all segments of borrowers irrespective of the loan amount and the profession of the borrower,” said SBI Managing Director (Retail & Digital Banking) C.S. Setty.
With this offer, SBI has removed the distinction between salaried and non-salaried borrowers. Moreover, the bank has also eliminated higher interest rates on home loans, which were paid by borrowers belonging to select professions. The bank will now rely on credit scores to offer home loans to borrowers.
With the onset of the festive season, SBI has also removed processing fees from home loans. The bank is also offering additional concessions on home loans to borrowers with impressive credit scores.
Moreover, SBI has also removed the Rs 75 lakh cap on home loans, beyond which borrowers will have to pay a higher interest rate of 7.15%. Such borrowers can now also take home loans at just a 6.7% interest rate.
Setty said that the 6.70% home loan offer is also applicable to balance transfer cases. “We believe zero processing fees and concessional interest rates in the festive season will make homeownership more affordable,” he added.