HOME LOANS GET CHEAPER AS SBI CUTS LENDING RATE

HOME LOANS GET CHEAPER AS SBI CUTS LENDING RATE

          Country's largest lender State Bank of India has cut lending rate  for new home loans by 15-20 basis points while it slashed base rate by 40 points to 9.3 per cent.

          SBI was among the first lenders to announce a reduction in its rates after the RBI surprised with a 50 basis points cut in its policy rate on September 29 as it lowered its minimum lending rate, or base rate, by 40 basis points - the highest for any lender so far - from 9.7 per cent to 9.3 per cent with effect from October 5.

          Till now, women home loan customers were being given housing loans at the base rate of 9.7 per cent without any markup, but Monday onwards, they will be charged 20 basis points above the base rate of 9.3 per cent or an interest rate of 9.5 per cent.

          Other customers, who were being charged 5 basis points above the base rate or 9.75 per cent, would have to pay 25 basis points above base rate, or 9.55 per cent, for home loans - resulting again in an actual reduction of 20 basis.

          Explaining the revised rates, SBI said these would be applicable to all home loans including takeover proposals from other lenders and those sanctioned by various branches with effect from October 5.

          The revised rates would also be applicable to those existing home loan borrowers who are paying higher interest rate than the current rate and want to switch over to the current rates on upfront payment of one time switchover fee.