Good news for home buyers; SBI cuts loan rates to 6.7%

The country's largest lender State Bank of India on Monday said it has reduced interest rates on home loans by up to 10 basis points (bps) and is offering loans starting from 6.70 per cent rate.

The new rates are based on loan amount and CIBIL score of the borrower, and are available till March 31, 2021, according to a statement.

The bank said the home loan interest rates will start from 6.70 per cent for loans up to Rs 75 lakh and 6.75 per cent for loans in the range of Rs 75 lakh-Rs 5 crore.

The bank's deputy managing director (retail business) Saloni Narayan said, "We want to take advantage of the festive season, especially Holi.

"This being the last month of the year, we are looking at a good number."

The lender is also giving a 100 per cent waiver on processing fees.

Customers can also apply for home loans using Yono app to get an additional interest concession of 5 bps, the bank said.

It is also offering a special 5 bps concession to woman borrowers on the eve of International Women's Day.

Narayan said the bank does not see much challenge in terms of repayments in the home loan segment.

"We are mindful of whatever stresses are there and we are reaching out to the customers.

"We are taking several steps within and outside the bank and also giving options to borrowers on how they can repay the loans.

"We are monitoring closely and, as of now, I don't see much of a challenge," she said.

The lender's gross non-performing assets in the home loan segment is 0.67-0.68 per cent, its chairman Dinesh Khara had said last month.

Photograph: Rupak De Chowdhuri/Reuters