SBI brings home loan rate to lowest in industry: 5 things you must know

SBI has lowered home loan rate by 0.05 percent to 8.30 percent.

New Delhi: Largest public lender State Bank of India (SBI) on Thursday lowered home loan rate by 0.05 percent to 8.30 percent, the lowest in the industry.

It has also reduced the auto loan by a similar percentage point to 8.70 percent per annum compared to earlier 8.75 percent.

On the rate reduction, P K Gupta, SBI MD retail banking, said, "With this reduction in rates, we are offering lowest rates for most of our product offering in retail loans. Lower rates along with wide distribution network and use of digital technology to enhance customer experience is a perfect package for any retail loan customer."

The reduction in the retail loan rate by SBI is expected to prompt other lenders to go for a similar move.

Here are 5 things you must know about SBI's new home loan rate regime

• The effective interest rate for all eligible salaried customers will be 8.30 percent per annum for loans up to Rs 30 lakh.
• Rates have been reduced by 5 basis points (0.05 per cent) in all other loan brackets.
• Over and above of 8.30 per cent rate, an eligible home loan customer can also avail of an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme
• The new rates will be effective from November 01.
• The reduction follows a cut in marginal cost of funds based lending rate (MCLR) two days ago, which came after a gap of 10 months. The bank had last cut the rate on January 1.