SBI Cuts Home Loan Rate To 6.70%
In a move that would boost the purchase of affordable properties in India, the country’s largest commercial bank, State Bank of India (SBI), has reduced its home loan interest for loans worth up to Rs 30 lakhs by 25 basis points (bps).
Effective from May 1, 2021, the state-run bank will charge only 6.70 per cent interest on home loans in this ticket size as against 6.95 per cent earlier. On home loans falling within the Rs 31 lakhs and Rs 75 lakhs bracket, SBI will charge an annual interest of 6.95 per cent. On home loans worth over Rs 75 lakhs, a borrower will have to pay an annual interest of 7.05 per cent.
SBI home loan interest rate May 2021
Up to Rs 30 lakhs
Between Rs 31 lakhs and Rs 75 lakhs
Over Rs 75 lakhs
*Valid from May 1, 2021
While the bank will offer an additional rebate of five bps on interest rates for women, it will also offer a further concession of five bps if an applicant were to apply for the home loan through SBI’s YONO app. This means, a woman borrower with a good credit score, who applies for home loans at SBI through the YONO app, can claim a home loan at interest rate as low as 6.60 per cent annual interest.
Borrowers will have to pay 0.40 per cent of the loan amount as the processing fee, subject to a minimum of Rs 10,000 and the maximum of Rs 30,000, with GST (Goods and Services Tax). If a buyer is buying a property where the bank has a tie-up with the builder, he will be charged 0.40 per cent of the loan amount as the processing fee, with the upper limit set at Rs 10,000, plus applicable tax.
Recall here that SBI, in April 2021, hiked its home loan interest rates by 25 bps, fueling speculations that other banks may start implementing an increase in home loan interest rates. Even as SBI has itself rolled back the hike, no other bank has announced any increase in interest rate so far.
SBI To Charge 6.95% Interest On Home Loans
With effect from April 1, 2021, public lender State Bank of India (SBI) has increased home loans interest rates by 25 basis points (bps). With this, borrowers will now have to pay 6.95 per cent annual interest, for home loans at SBI, as against 6.70 per cent earlier.
The state-run bank has also decided to charge 0.40 per cent of the loan amount as the processing fee for loan disbursal. Till March 31, 2021, SBI was offering a complete waiver on the processing fee, apart from offering loans at lower rates.
SBI Reduces Home Loan Interest Rate To 6.7%, For A Limited Period
March 10, 2021: State Bank of India (SBI) has reduced its home loan interest rates to 6.7 per cent, from the previous 6.8 per cent, effectuating a 10-basis point cut. The new rates by the public lender, are being offered for a limited period, till March 31, 2021.
For home loans of up to Rs 75 lakhs, SBI will be charging 6.7 per cent annual interest. It will charge 6.75 per cent annual interest on home loans above Rs 75 lakhs. However, SBI will offer the best rates, only to borrowers with impressive credit scores.
Delhi Cooperative Housing Finance Corporation Slashes Home Loans Rates To 6.75%
In what could further boost the buyer sentiment in the national capital, city-based Delhi Cooperative Housing Finance Corporation (DCHFC) Limited has announced a 70-basis-points reduction in its home loan interest rates, Effective from February 8, 2021, the home loans at the bank would be available for 6.75 per cent as against the earlier 7.45 per cent per annum.
Most banks have lowered their home loan interest rates to sub-seven per cent level, after the Reserve Bank of India (RBI) in May 2020 brought down the repo rate, at which it lends money to banks, to four per cent through consecutive cuts.
The reduction, the DCHFC said, would bring down the loan payment instalment from Rs 803 per lakh to Rs 760 per lakh. The move by the bank comes, following a directive by the chief minister Arvind Kejriwal-led government to reduce interest rates, after the UT administration last week slashed the circle rates for all properties in Delhi by 20 per cent, albeit for a period of six months, till September 30, 2021. Combined with the lowering of interest rates, this presents a unique opportunity for homebuyers of the national capital to possess a home, at a time when the DDA has also announced its housing scheme for the year 2021.
The lender is also planning to launch an attractive housing loan package for the middle-class and the weaker sections, it said in a statement issued on February 8, 2021.
State-run DCHFC provides home loans to Delhi citizens for purchase of homes in group housing societies, apart from offering loan support to those purchasing a flat from the Delhi Development Authority. Aside from offering loan swapping facilities, the corporation also grants financial assistance for home extension and house renovation, at rates much lower than those offered by private banks.
SBI Pares Home Loan Interest Rate To 6.8%
January 20, 2021: With an aim to attract borrowers, public lender State Bank of India (SBI) has cut the interest rate on home loans of up to Rs 30 lakh by 10 basis points. With this, the effective interest rate on this ticket size would now be 6.8 per cent from the previous 6.9 per cent.
The bank has also implemented a five-basis-points reduction in loans of over Rs 30 lakh, which would now attract an annual interest of 6.95 per cent from the earlier 7 per cent.
The new rates are applicable from January 8, 2021.
Till March 31, 2021, the bank will also continue to offer a complete waiver on its home loan processing fee, apart from offering an additional five-basis-point waiver to women borrowers. Those applying for a balance transfer will also be offered an additional concession of five basis points.
"Home loan interest rates are linked to the CIBIL score and start from 6.80 per cent for loans up to Rs 30 lakh and 6.95 per cent for loans above Rs 30 lakh. Interest concessions up to 30 bps are also available in eight metro cities for loans up to Rs 5 crore,” SBI said, on January 8, 2021, in a statement.
Customers applying through SBI’s YONO app or its official portals, homeloans.sbi and sbiloansin59minutes.com are also being offered an additional five-bps rebate on interest rates.
“We are pleased to improve our concessions to prospective home loan customers up to March 2021. With SBI’s lowest interest on home loans, we believe this move will facilitate and encourage homebuyers to take the home buying decision with confidence. With the nation all geared up to move ahead post-pandemic, SBI would continue to support homebuyers and the real estate sector," said CS Setty, MD (retail and digital banking), SBI.
Kotak Mahindra Bank Cuts Home Loan Interest By Another 15 Bps
November 4, 2020: Days after the bank lowered its home loan interest rates by 10 basis points (bps) to bring it down to 6.9%, Kotak Mahindra Bank has announced a further 15-bps reduction in rates. With the latest cut, the private lender is now offering home loans at 6.75% annual interest. This rate is also applicable on all balance transfers.
The best rates will, however, be available to those with good credit scores and the nature of their employment. The bank will also factor in the loan-to-value ratio, while offering concessional rates. The bank will, for instance, charge 8.45% interest on home loans to non-salaried employees where the LTV ratio ranges between 80% and 90%. On the other hand, the best rates are being offered to salaried employees where the LTV ratio is less than 80%.
SBI Cuts Home Loan Interest Rate To 6.9%
October 22, 2020: A day after public sector bank SBI lowered lending rates to 6.9% as part of its festive offering, private lender Kotak Mahindra Bank on October 22, 2020, announced a reduction of 10 basis points to bring the interest rate on its home loans to the same level. The new rates of 6.9% at Kotak Mahindra come into effect from October 21, 2020.
The bank will, however, offer the concession in rates based on the borrower’s gender, occupation and credit score. A woman borrower who is a salaried employee and has a credit score of over 750 will be charged the lowest rate of interest on new home loans at Kotak. These rates are also applicable on home loan balance transfer at the bank.
Joining the league of financial institutions that have cut home loan interest rates to cash in on the ongoing festive season, public lender State Bank of India (SBI) has brought down rates to the sub-7% level. Announcing a rate reduction that could lower the cost of borrowing by up to 25 basis points (bps), India’s largest lender, on October 21, 2020, said the new scheme was an extension of the festive offers announced earlier.
New borrowers can now avail of housing loans of up to Rs 30 lakhs at an annual interest of 6.9%, while an interest of 7% will be levied on home loans worth over Rs 30 lakhs. To get the full benefit of the 25 bps reduction, borrowers would have to apply for the home loan through the SBI YONO app and have an impressive credit score, as well.
A credit score of above 700 is considered good by financial institutions.
As it is, women borrowers enjoy a further concession of 5 bps on SBI housing loans. So, they would be able to get loans at even lower rates, with the help of an impressive credit score and by applying through YONO.
"In an extension of its festive offers announced recently, SBI offers credit score-based concessions of up to 20 bps, from 10 bps earlier, for a home loan of above Rs 30 lakhs to Rs 2 crores, across India. The same concession would also be applicable for home loan customers for a loan amount of up to Rs 3 crores in eight metro cities. An additional 5 bps concession for all home loans is given, if applied through YONO," the bank said in a press statement.
Select SBI Home Loans Cheaper By Up To 15 BPS
India’s largest bank, State Bank of India (SBI) plans to offer discounts to home loan borrowers in the upcoming festive season. According to a statement issued by the lender, on September 28, 2020, SBI will offer a concession of up to 10 basis points on home loan interest, if the buyer purchases a unit in an approved project.
The borrower could avail of an additional concession of five basis points in home loan interest, if he applies for the credit through SBI’s YONO platform. Launched in 2017, YONO is a unified integrated app by SBI.
Additionally, the borrower will enjoy a full waiver on the processing fee that they have to pay as part of the home loan approval process. Financial institutions typically charge 25-100 basis points of the loan amount as the processing fee from the borrower.
This means for a home loan worth Rs 30 lakhs, the borrower might be asked to pay between Rs 7,000 and Rs 30,000 as the processing charge.
“There would be a complete waiver on processing fees on home loans for homebuyers in approved projects. The bank is also providing special concessions up to 10 bps on the interest rate for the customers, based on their credit score and loan amount,” SBI said in a statement. It begs mention here that a credit score of above 750 is considered good by financial institutions but a score between 300 and 600 is considered risky.
“Additionally, homebuyers can avail 5 bps interest concession if they apply for a home loan via YONO,” it added.
Currently, SBI, the largest lender in the country with a 34% market share in the housing loan segment, charges interest ranging between 7% and 7.35% annually. By availing of the festive discounts, a borrower will be able to lower the interest up by to 15 basis points.