SBI cuts interest on home loan by up to 0.15%, makes rate structure uniform
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SBI cuts interest on home loan by up to 0.15%, makes rate structure uniform

Last Updated: Wednesday, August 27, 2014, 14:24
 
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SBI cuts interest on home loan by up to 0.15%, makes rate structure uniform
New Delhi: Country's largest bank SBI on Tuesday slashed home loan rate by up to 0.15 percent on housing loan and removed the slab for advances, a development which will have bearing on mortgage rate of other lenders.

Home loan of any amount would now be available at 10.15 percent while for women borrower the rate of interest would be 10.10 per cent, SBI said in a corrected press statement.

The base rate or the minimum lending rate below which the bank cannot lend is 10 percent.

The country largest lender, SBI, has now removed two home loan slabs -- under Rs 75 lakh and above Rs 75 lakh.

"It has now been decided to offer uniform interest rate on home loans with effect from August 26, irrespective of the loan amount," it said.

So as per the revised statement, the concessional 0.05 percent interest rate has been maintained for women borrowers provided she is the sole applicant or the first of the co-applicants and also the sole or the first of the co-owners of the property.

Meanwhile, the bank decided to designate Praveen Kumar Gupta as the Deputy Managing Director and Chief Financial Officer.

Previously, the interest rates on home loans were revised downwards on December 20, 2013 with a separate interest rate structure for woman borrowers at 10.10 per cent (on loans up to Rs 75 lakh) and 10.25 percent (on loans above Rs 75 lakh) too, it said.

In the August review of monetary policy the RBI kept short-term lending rate unchanged at 8 percent, while the cash reserve ratio (CRR) remained at 4 per cent citing upside risks to inflation in view of uncertain monsoon and its impact on food production as also volatile international oil prices.

In order to infuse additional liquidity, RBI decreased SLR for banks by 0.50 per cent to 22 percent with effect from the fortnight beginning August 9. A similar move in June had released an additional Rs 40,000 crore into the system.



PTI

First Published: Tuesday, August 26, 2014, 18:22


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