SBI slashes home loan rates by up to 0.4%

State Bank of India on Thursday cut home loan rates by up to 0.4 per cent for new borrowers, a day after RBI kept its key policy rates on hold.

Women borrowers would get an additional 0.05 per cent concession on card rates.

SBI home loans will now be available under two slabs -- under Rs 75 lakh (Rs 7.5 million) and above Rs 75 lakh.

Loans of up to Rs 75 lakh would be available to fresh borrowers at 10.15 per cent against the existing rate of 10.50 per cent.

. . .

For women borrowers, the rate of interest after an additional concession of 0.05 per cent would be 10.10 per cent for home loans of up to Rs 75 lakh.

The new rates would be effective from Friday, State Bank of India said in a statement.

With regard to loans of above Rs 75 lakh, the new rate would be 10.30 per cent.  

For women borrowers it is 10.25 per cent.

The revised EMI per lakh for a loan tenure of 30 years will be Rs 885 (for women) and Rs  889 (for others).

. . .

The prevailing equated monthly installment for Rs 100,000 is Rs 900 for 30 years, it said.

The Reserve Bank of India in its monetary policy review on Wednesday kept short-term lending rate unchanged at 7.75 per cent, while the cash reserve ratio remained at 4 per cent.

In October, SBI had reduced interest rates on loans for car and consumer durables and also decided to lower processing charges to cash in on the festival season demand.