Buying a home has always been a hassle. But now SBI may have finally given some good news to homebuyers.
Days after government implemented the Real Estate (Regulation and Development) Act, the largest public lender in the country, SBI (State Bank of India), has cut down the interest rates on home loan of up to Rs 30 lakh by 25 basis points.
In a bid to woo homebuyers, the State Bank of India will offer home loans of up to Rs 30 lakh for the salaried women borrowers at an interest rate of 8.35 per cent. For non-salaried women borrowers, there will be 20 bps cut in the interest rates.
One percentage point is 100 basis points (bps).
However, for new 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 said.
"This a huge saving for the borrower as the 25 bps reduction translates into a saving of Rs 530 per month on EMIs," Kumar said.
The new lending rates of 8.35 per cent will be applicable for only affordable housing loans which are under Rs 30 lakh.
The new rates will be come into effect from May 9, 2017.
"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 trillion, SBI leads the segment with 25-26 per cent market share, Kumar added.
However, Kumar is of the view that the new offer may not push up its market share significantly as 45 per cent of its Rs 2.23 trillion home loan book is under Rs 30 lakh bracket.
The interest rates for homebuyers looking for a home loan above Rs 30 lakh have also been reduced by 10 bps. Apart from the rate-cut by SBI, an eligible homebuyer may also get an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana.