SBI cuts home loans to lowest in country
In a significant move, State Bank of India (SBI) has reduced home loan rates by 0.05% to 8.3%. It has also reduced auto loan rates to 8.7% "With this reduction, SBI's offering in home loan is the lowest in the market," the bank said. The new rates came into effect yesterday. This is expected to trigger a cut in loan rates of other lenders.
Rates for different loans for customers, explained
After the cut, the effective home loan rate for salaried customers will be 8.3% up to Rs. 30L. For loans above that, eligible customers can also get interest subsidy of Rs. 2.67L under the Pradhan Mantri Awas scheme. In car loans, interest ranges between 8.7%-9.2%. The exact rates will depend on the loan amount and customers' credit score.
At the same time, a cut in FD interest rate
From November 1, SBI also cut its fixed deposit rates by 25 basis points across most maturities. A one-year FD will fetch interest of 6.25% compared to 6.50% earlier. Interest for senior citizens is down from 7% to 6.75%. These changes come even as SBI cut its marginal cost-based lending rates (MCLR) by 5 basis points to 7.95%, the first cut in 10 months.
A series of schemes from SBI in recent times
Recently, SBI has introduced several lucrative schemes for customers. In September, it proposed a one-time settlement scheme for farmers by waiving off a part of the loan. In August, it announced a waiver on processing fees for most of its retail loans, including on car loans, gold loans and other personal loans. In July, it launched 'SBI Realty', a dedicated portal for home buyers.
