SBI Cuts Home Loan Interest Rate At 6.70%, Festive Offer

Before the upcoming festive season in India, the State Bank of India (SBI) has reduced its home loan interest rates to attract more loans to the segment. The current home loan interest rate is now at 6.70%, regardless of the loan amount, after the latest reduction. The real estate segment is now running at a subdued market price, making it a good time for investors; the new home loan reduction by SBI will be another boost to that.

SBI has now waived off the processing fees in addition to attractive interest concession based on the credit score of the borrower. The largest national bank has also omitted the distinction between salaried and non-salaried borrowers. Earlier, a non-salaried borrower has to pay a 15 bps higher interest rate than a salaried borrower. This will help the non-salaried borrowers to some extent in the field.

Anuj Puri, Chairman - ANAROCK Group commented, "This is an extremely competitive move which virtually negates all the previous limitations which applied to special home loan interest rates. Instead of focusing on just budget housing, this new interest rate is genuinely democratic as buyers from any budget bandwidth will benefit. This move is aptly timed, coinciding with the beginning of the festive season. This year, we are likely to see significantly improved traction in the housing segment during this period. Waiving of processing fees and occupation-linked interest premium are added levels of savings."

Giving a detailed analysis he added, "Latest ANAROCK research reveals that the highest demand is currently in the premium segment, where properties are priced INR 80 lakh and above. This is primarily the result of homes now doubling as offices and e-learning centers. This lending rate will also not restrict which cities will benefit from it - in previous concessional rates limited to budget housing, only tier 2 and tier 3 cities could really benefit. With this democratized interest rate, SBI also addresses the huge housing demand in the metros."