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.
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 Name||Interest Rate (%)||Tenure||Amount|
|Bank of Baroda||8.35%||10-30 years||Rs 10L-10 Cr|
|State Bank of India||8.35%||10 – 30 Years||Less than Rs 30 L|
|Kotak Bank Ltd||8.75%||10 – 30 Years||Rs.20L Min|
|ICICI||8.65%||10 – 30 Years||Rs.5L – Rs.10Crs|
|HDFC Ltd||8.65%||10 – 30 Years||Rs.5L – Rs.10Crs|
|Union Bank||8.60%||10 – 30 Years||Rs.15L – Rs.5Crs|
|L&T Housing Finance||9.90%||10 – 20 Years||Rs.3L – Rs.10Crs|
|RBL Bank||10.30%||10 – 25 Years||Rs.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.
Updated Date: May 08, 2017 17:04 PM