Fillip to affordable housing: SBI cuts home loan rates by 25 bps to 8.35% for loans under Rs 30 lakh

Mumbai: India's largest lender SBI on Monday announced a steep reduction of 25 basis points in affordable housing loans to 8.35 percent for new borrowers.

Under the new government scheme, loans under Rs 30 lakh qualify for affordable housing.

Reuters

Reuters

For male borrowers, the limited period offer is valid till 31 July and the reduction is 20 bps to 8.40 percent, said SBI Managing Director for national banking, Rajnish Kumar in a concall.

The new rate reduction of 25 basis points for women will be for the salaried borrowers and for the non-salaried, it will be 20 bps cut.

Similar will be the rates applicable to male salaried and non-salaried borrowers.

One percentage point is 100 basis points (bps).

"This a huge saving for the borrower as the 25 bps reduction translates into a saving of Rs 530 per month on EMIs," he said.

The new rates will be effective tomorrow.

"This is giant leap to give a fillip to the affordable housing segment keeping the Prime Minister's vision of providing 'housing for all' by 2022," Kumar said, adding that the lender now offers the lowest rates in the industry.

With a home loan book of Rs 2.23 trillion, SBI leads the segment with 25-26 percent market share, Kumar said further.

Bank NameInterest Rate (%)TenureAmount
Bank of Baroda8.35%10-30 yearsRs 10L-10 Cr
State Bank of India8.35%10 – 30 YearsLess than Rs 30 L
Kotak Bank Ltd8.75%10 – 30 YearsRs.20L Min
ICICI8.65%10 – 30 YearsRs.5L – Rs.10Crs
HDFC Ltd8.65%10 – 30 YearsRs.5L – Rs.10Crs
Union Bank8.60%10 – 30 YearsRs.15L – Rs.5Crs
L&T Housing Finance9.90%10 – 20 YearsRs.3L – Rs.10Crs
RBL Bank10.30%10 – 25 YearsRs.10Crs Max
Data Courtesy: Apnapaisa.com

However, he is of the view that the new offer may not push up its market share significantly as 45 percent of its Rs 2.23 trillion home loan book is under Rs 30 lakh bracket.

Shares of State Bank of India ended 0.91 percent higher at Rs 298.65 as against 0.2 percent rise in Sensex which ended at 29,926.15.


Published Date: May 08, 2017 03:46 pm | Updated Date: May 08, 2017 05:04 pm


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