 "SBI, ICICI Bank cut home loan rates")
Leading lenders State Bank of India (SBI) and ICICI Bank on Thursday cut their home loan rates by 0.10 percentage points to 9.4 per cent following implementation of a new interest rate calculation regime mandated by the Reserve Bank of India (RBI).
The lending rates of other banks may also fall soon with the marginal cost of funds-based lending rate (MCLR) system coming into force with effect from April 1.
If the banks decide to pass on the latest policy rate cut of 25 basis points (bps) announced by RBI on Tuesday, the rates for borrowers may go down further.
SBI, the country's largest lender, in a statement said it has fixed its home loan interest rate at 9.45 per cent, which is 0.25 percentage point more than its one-year marginal cost of fund-based lending rate of 9.20 per cent. However, women borrowers would get the loan 0.20 percentage point above the MCLR at 9.40 per cent. The new rate came into effect from April 1, it said.
According to information available on the SBI website, the earlier home loan rate was 9.5 per cent for women borrowers and 9.55 per cent for others.
According to the website of ICICI Bank, the country's largest private sector lender, its minimum home loan rates are also at par with SBI as both the one-year MCLR and the spread over it are same.
However, ICICI Bank's effective rate of interest will go up to 9.65 per cent for loans above Rs 5 crore taken by women borrowers under floating interest rate.
Borrowers from weaker sections would be able to avail loans of up to Rs 25 lakh at 9.40 per cent.
RBI had asked banks to price fixed-rate loans of up to three years based on their marginal cost of funds from April 1. All banks have to follow MCLR system, a new uniform methodology which will ensure fair interest rates to borrowers as well as to banks.
The lending rates of other banks may also fall soon with the marginal cost of funds-based lending rate (MCLR) system coming into force with effect from April 1.
If the banks decide to pass on the latest policy rate cut of 25 basis points (bps) announced by RBI on Tuesday, the rates for borrowers may go down further.
SBI, the country's largest lender, in a statement said it has fixed its home loan interest rate at 9.45 per cent, which is 0.25 percentage point more than its one-year marginal cost of fund-based lending rate of 9.20 per cent. However, women borrowers would get the loan 0.20 percentage point above the MCLR at 9.40 per cent. The new rate came into effect from April 1, it said.
According to information available on the SBI website, the earlier home loan rate was 9.5 per cent for women borrowers and 9.55 per cent for others.
According to the website of ICICI Bank, the country's largest private sector lender, its minimum home loan rates are also at par with SBI as both the one-year MCLR and the spread over it are same.
However, ICICI Bank's effective rate of interest will go up to 9.65 per cent for loans above Rs 5 crore taken by women borrowers under floating interest rate.
Borrowers from weaker sections would be able to avail loans of up to Rs 25 lakh at 9.40 per cent.
RBI had asked banks to price fixed-rate loans of up to three years based on their marginal cost of funds from April 1. All banks have to follow MCLR system, a new uniform methodology which will ensure fair interest rates to borrowers as well as to banks.