SBI reduces the interest rate on home loans to 6.7% for any amount, with no processing fees. Know more
The State Bank of India (SBI) on Thursday cut mortgage interest rates to 6.7% for any loan amount. This is the first time that a bank has granted flat rate home loans, the lender said. The latest offer from the nation’s largest lender aims to encourage homebuyers ahead of the holiday season.
Explaining how this one-of-a-kind initiative will benefit home buyers, SBI said a buyer must pay 7.15% interest to qualify for a Rs 75 lakh home loan. With the introduction of the festive offers, the home loan will be available at an interest rate of 6.7%. “The offer translates into a saving of 45 basis points, which translates into a huge interest savings of over Rs 8 lakh, for a loan of Rs 75 lac with a term of 30 years,” said SBI.
Previously, the interest rate on home loans was different for employed and non-salaried homebuyers. Non-salaried borrowers had to pay higher interest rates than their salaried counterparts. âFrom now on, no interest premium linked to occupancy is charged to potential borrowers of mortgage loans. This would lead to a new interest saving of 15 basis points for non-salaried borrowers, âthe bank said.
âGenerally, 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 accessible to all segments of borrowers regardless of the loan amount and the borrower’s profession, âsaid CS Setty, Managing Director (Retail & Digital Banking ), SBI.
On how this will benefit mortgage borrowers, Anuj Puri, chairman of ANAROCK Group, said: âThis is a hugely competitive decision that removes virtually all previous limitations that applied to special loan interest rates. real estate. Instead of focusing only on budget housing, this new interest rate is genuinely democratic, as buyers from every budget band will benefit. “
To encourage homebuyers ahead of the holiday season, the lender has also announced that it is waiving processing fees. There will also be a concession on mortgage interest rates based on the borrower’s credit rating, the bank said. The same interest rate will apply for those who plan to transfer their mortgage from other banks to the State Bank of India.
âThis lending rate will also not limit which cities will benefit from it – in previous preferential rates limited to budget housing, only tier 2 and tier 3 cities could really benefit. With this democratized interest rate, SBI is also responding to the huge demand for housing in the subways. This move is timely, coinciding with the start of the holiday season, âadded Puri.
Exemption from processing fees and interest premiums linked to occupation are additional savings levels. Cumulatively, this package is the most attractive deal ever offered by a home loan lender, âhe added.
âWe believe zero processing fees and great interest rates during the holiday season will make homeownership more affordable. Our country has shown tremendous resilience during the pandemic. As every Indian’s banker, we are committed to doing our part to revive the economy by enabling housing for all, âconcluded Shetty.
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