You are here: Home » Finance » News » Banks
Business Standard

SBI cuts affordable home loan rates to 8.35%; lowest in market

Under the new government scheme, loans under Rs 30 lakh qualify for affordable housing

Sbi Home Loan

Press Trust of India  |  Mumbai 

SBI, State Bank of India, state bank, bank
State Bank of India logo. File photo

India's largest lender, the State Bank of India (SBI), on Monday announced a steep reduction of 25 basis points (bps) in affordable housing loans to 8.35 per cent for new borrowers.

Under the new government scheme, loans under Rs 30 lakh qualify for affordable housing.

For male borrowers, the limited period offer is valid till July 31 and the reduction is 20 bps to 8.40 per cent, SBI Managing Director for national banking Rajnish Kumar told PTI in a conference call.

The new rate reduction of 25 bps for women will be for salaried borrowers. For non-salaried borrowers, it will be a 20 bps cut.

Similar rates will be applicable for male salaried and non-salaried borrowers.

One percentage point is 100 bps.

"This a huge saving for the borrower as the 25 bps reduction translates into a saving of Rs 530 per month on EMIs," he said.

The new rates will be effective from Tuesday.

"This is giant leap to give a fillip to the affordable housing segment keeping the Prime Minister's vision of providing 'housing for all' by 2022," Kumar said, adding that the lender now offers the lowest rates in the industry.

With a home loan book of Rs 2.23 lakh crore, SBI leads the segment with 25-26 per cent market share, Kumar said further.

However, he is of the view that the new offer may not push up SBI's market share significantly as 45 per cent of its 2.23 lakh crore home loan book is under the Rs 30 lakh bracket.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, May 08 2017. 15:36 IST