State Bank of India reduces home loan interest rates to 6.7%

Women borrowers to get a special concession of 5 bps

State Bank of India, the country's largest lender, on Saturday said it has cut the interest rates it charges on home loans. The rates now start at 6.7 per cent for loans up to Rs 30 lakh.

The state-owned bank has a home loan portfolio of about Rs 5 trillion, making it the market leader.

The bank will charge interest at 6.95 per cent for loans between Rs 30 lakh-Rs 75 lakhs Big-ticket loans above Rs 75 lakh will attract a rate of 7.05 per cent, the bank said in a statement.

Earlier in March, the bank had reduced the rate to 6.7 per cent as part of a festive offer before restoring it to 6.95 per cent which took effect from April 1.

C S Setty, the bank's managing director for the retail and digital banking division said, “The affordability for the consumer increases immensely with the present home loan interest rate offerings which reduce the EMI amounts substantially. I am sure these measures will give a fillip to the real estate industry too”.

SBI is also offering a concession of 5 basis points (0.05 per cent) to women borrowers. An additional concession of 5 basis points is being offered if the loan is availed through the bank's mobile app.

"To enhance customer experience through the YONO app, a 5 bps concession is being offered as a digital incentive to our home loan customers," said the lender.