Relief for borrowers: SBI, HDFC cut home loan rates

Borrowers who are looking for a loan above the loan amount of Rs 75 lakh will have to pay 15 basis points more, that is 10.30 percent. For women borrowers, the bank has also announced a discount of 5 basis points. The new rates will be effective from 20 December.

FP Staff December 20, 2013 09:53:35 IST
Relief for borrowers: SBI, HDFC cut home loan rates

Just one day after the Reserve Bank of India held on to its key policy rate in its policy review, State Bank of India has announced a reduction in its home loan interest rates.

According to CNBC TV 18 reports, SBI will offer 10.15 percent interest rate for home loan up to Rs 75 lakh.

Relief for borrowers SBI HDFC cut home loan rates

Reuters

Borrowers who are looking for a loan above the loan amount of Rs 75 lakh will have to pay 15 basis points more, that is 10.30 percent. For women borrowers, the bank has also announced a discount of 5 basis points. The new rates will be effective from 20 December.

The move comes a day after the Reserve Bank of India (RBI) chose to keep its key lending rate, repo, unchanged saying it is prepared to wait for more data on inflation before taking a rate action.

"The aim is to attract customers and improve market share," an SBI official told Economic Times today. According to the report, the country's largest lender has Rs 1,30,034 crore worth of home loans, which forms13.6 percent of its total advances.

Within hours of the SBI announcement, HDFC, which had hiked the rates by 10 basis points two weeks ago, announced a cut of up to 50 basis points in home loan rates.

The new rates for HDFC's home loans up to Rs 75 lakh will be 10.25 percent per annum. "This is a limited period offer and is valid for all new applications submitted before January 31, 2014 and first disbursement taken by February 28, 2014," HDFC said in a statement.

ICICI Bank, which is another big home loan player, is yet to take a call. However, according to a DNA report, the private sector lender may revise interest rates on home loans from January 2014.

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