Hamara Ghar offer: SBI's new home loan

Its aim is to pass on the benefit of reduction in cost of funds and give a push to credit demand

In an effort to push home loans, State Bank of India (SBI) on Monday floated a scheme offering fixed rate for the first two years at 8.5% for women and 8.55% for men.  

The country’s largest lender reduced the floating interest rate from 9.15% to 8.6% for home loans up to Rs 75 lakh and to 8.65% for a higher amount.

In SBI's new loan offer Hamara Ghar, once the fixed term of two years ends, the interest rate on the home loan will be linked to the prevailing one­year marginal cost of funds based lending rate (MCLR). The spread on the home loan at that time will remain the same as the current interest spread over the MCLR, which is 50 basis points.

SBI Chairman Arundhati Bhattacharya said the bank’s aim was to pass on the benefit of reduction in cost of funds and give a push to credit demand.