 "Good news: SBI, HDFC, PNB cut home loan rates")
Country’s largest lender, State Bank of India (SBI) on Tuesday slashed interest rate on home loans by up to 15 basis points(bps) on housing loans, offering a uniform interest rate to all customers regardless of the loan amount while HDFC has also 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.
One bps is one hundredth of a percentage point.
SBI has reduced the interest rate by 15 bps to 10.15% from 10.30% for home loans. For women borrowers, the rate will be lesser at 10.10%. The new rates will come into force with immediate effect. The rate cut will, in effect, benefit only those who borrow over Rs75 lakhs since SBI is already lending at 10.15% for loans upto Rs 75 lakhs at 10.15%. Loans above Rs75 lakh are offered at 10.30%. The rate cut has come ahead of he festive season and is likely to be followed by other banks too.
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.
In the August review of monetary policy the RBI kept short-term lending rate unchanged at 8 percent, while the cash reserve ratio (CRR) remained at 4 percent citing upside risks to inflation in view of uncertain monsoon and its impact on food production as also volatile international oil prices.
Subsequently, the bank rate was retained at 9 percent.
In order to infuse additional liquidity, RBI decreased SLR for banks by 0.50 percent to 22 percent with effect from the fortnight beginning August 9.
A similar move in June had released an additional Rs 40,000 crore into the system.
With inputs from PTI
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