SBI cuts home loan rates; lowest in 6 years

Apart from cutting the home loan rate, SBI has also waived off all processing fees.

Zee Media Bureau

Mumbai: Country's largest lender State Bank of India (SBI) has announced  cut in its home loan rates as per media reports.

The Times of India report said that “home loans for women (or loans with women as co-borrowers) will be available for 20bps above the benchmark rate, which translates into 9.1 percent.

“For all other borrowers, home loans will be available at 9.15 percent”, it added.

The new loan rates are a part of the festival rates and will be applicable for loans sanctioned in November and December 2016. Apart from cut in the loan rate, SBI has also waived off all processing fees.

Last week SBI had announced reduction in its lending rates under a new system of computation, signalling a further dip in borrowing costs ahead of the busy season.

Under the revised rates, the one-year MCLR which determined a slew of products including home loans for SBI stands at 8.90 percent.

The announcements come after repeated displeasure shown by the regulator for not passing on the benefits of cuts to borrowers and give a boost to the sagging economic growth. They also come ahead of the crucial "busy season" in the second half of the fiscal which sees a spurt in loan demand.