Big News for SBI Customers! Home loan gets cheaper as bank cuts lending rates. Check revised interest rates

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SBI Home Loan Rate: Are you State Bank of India (SBI) customer and planning to buy a dream home? Then here's good news for you as India's largest lender SBI is offering home loans at more affordable rates. The SBI home loan rate now starts at 6.95 per cent per annum the second-lowest rate for home loans after Bank of Baroda, which offers home loans from 6.85% onwards.

In the second week of June, SBI had announced a reduction in its external benchmark linked lending rate to 6.65% from 7.05%. The bank had also reduced the marginal cost of funds-based lending rate (MCLR) to 7% from 7.25%.

According to the information available on the SBI website, these rates have come into effect from 1 July 2020. SBI is offering a home loan at an initial rate of 6.95 % per annum to women, 0.05 per cent less than the regular rate. For others, the interest rate starts at 7 per cent per annum.

 HOME LOAN INTEREST CARD RATE STRUCTURE

• A premium of 15 bps will be added to the Card Rate for Non-Salaried Customers.
• A premium of 10 bps will be added to the Card Rate for Loan up to Rs 30 Lacs if LTV ratio is >80% & <=90%.
• A premium of 10 bps will be added to the Card Rate for customers falls under RG (4 to 6) 
• 05 bps concession will be available to women.
• Premium of Non-Salaried Customers, Risk Grade 04 to 06, Loan up to Rs 30 Lacs if LTV ratio is >80% & <=90% and concession for women customers will be clubbed with Card Rate/ other premium for arriving at Final Rate for the customer.

 SBI REALTY LOANS 

• A premium of 10 bps will be added to the Card Rate for customers falls under Risk Grade 04 to 06.
• 05 bps concession will be available to women.
• A premium of 05 bps will be added for the customers who is not having salary account with SBI.

 HOME TOP UP CARD INTEREST RATE STRUCTURE (FLOATING): EBR 6.65%​

• A premium of 15 bps will be added to Card Rate for Non-Salaried Customers.
• A premium of 10 bps will be added to the Card Rate for customers falls under Risk Grade 04 to 06.
• Premium of Non Salaried,Risk Grade 04 to 06 will be clubbed with other premium for arriving at final Rate for the customers.

The central bank has reduced the repo rate by 40 basis points (bps) to 4% and reduced the reverse repo rates by 40 bps to 3.35%. One basis point is one-hundredth of a percentage point.

Even though SBI rates start at 6.95%, the actual rates vary depending on the loan amount and profile of the borrower. For salaried, the interest rate is 7% for loans up to ₹30 lakh. For loans between ₹30 lakh and ₹75 lakh, the rate is 7.25% and 7.35% for loans above ₹75 lakh. Female salaried borrowers with high credit score get home loans at 6.95%.

For salaried, home loans from ICICI Bank start at 7.45% (for up ₹35 lakh) and go up to 8.45% (for loans above ₹75 lakh). HDFC Ltd's home loan interest rates start at 7.35%.