Sbi Aims At 150% Rise In Home Loans

The State Bank of India (SBI), which brought down the interest rates on its housing loans recently, has targetted to increase its disbursement by 150 per cent to Rs 2,000 crore in the housing sector this year. Last year, the country's largest commercial bank disbursed Rs 800 crore in this sector.

The Housing Development Finance Corporation (HDFC) announced a cut early this month, followed by SBI, which decided on rate cuts in the second week of this month.

SBI, which has put a thrust on the housing sector, has restructured its portfolio of loan products in the housing sector.

Up to a loan of Rs 2 lakh, the rates have come down by 74 basis points to 11.5 per cent, over Rs 2 lakh and upto Rs 10 lakh by 125 basis points to 12.5 per cent and over Rs 10 lakh by 150 basis points to 12.75 per cent.

 

With falling property prices, rising incomes and major tax sops both towards repayment of interest and principal of housing loans, everything is now in favour of the consumer. In the low interest regime, competition is hotting up amongst the housing finance companies.