SBI Cuts Home Loan Rates by 25 bps: Offers Lowest Rate in the Industry

By 121 News

Chandigarh 17^th May:- The country's largest lender and Home Loan provider, State Bank of India has reduced the interest rates on Home Loans for borrowers for up to Rs. 30 lacs by 25 bps.

Mohan Ganeshan, DGM Chandigarh said that the new rates, which are applicable to all new Home Loans sanctioned after 09.05.2017, will give a fillip to the affordable Housing segment, keeping in view the Prime Minister's vision of providing Housing for all by 2022. It will aid millions of home buyers to purchase their dream home. The new rates offered by SBI are the lowest in the industry.

He mentioned further that the interest rates for loans above Rs.30 lacs have also been reduced by 10 bps. Over and above this lucrative interest rate, an eligible home buyer may also get interest subsidy upto Rs2.67 lacs under Prime Minister Awas Yojana.

Mohan Ganeshan said that SBI is also offering incentive to the builders in the form of interest concession upto 35bps for construction finance, who take up affordable housing projects. This will give a dual advantage to the sector as construction finance and home loans for affordable housing will get the benefit.

The rate reduction translates into a saving of Rs.540 per month on EMIs as shown in the chart below

• For a Home Loan of Rs.30 lacs with a tenure of 30 years:

	Existing Rate of interest	Proposed rate of interest	Existing EMI	Proposed EMI	Net savings Per month	EMI, after receipt of PMAY subsidy of Rs. 2.67 lacs	Net savings/ month after receipt of PMAY subsidy*
Women	8.60	8.35	23280	22749	541	20725	2555
Men	8.65	8.40	23387	22855	532	20821	2566

*If the net savings in EMI is invested in Recurring Deposit, the total amount at the end of 30 years will be Rs.28.22 lacs

Individuals can apply for Home Loans through multiple channels. The Bank offers a bouquet of Home Loan products catering to the different sections of the society.