SBI cuts rates for home loans above Rs 75 lakh

State Bank of India (SBI) reduced interest rates on its home loans above Rs 75 lakh to 8.55 per cent for women borrowers and to 8.60 per cent for other customers, giving a reduction of 0.10 per cent from the prevailing rates. This is the second reduction in interest rates in the last two months. SBI had reduced its interest rates by 0.25 per cent on April 9.

SBI, which has the largest market share with a home loan portfolio of Rs 2.22 lakh cr, will force more banks to reduce their interest rates in a highly competitive home loan segment where customers are very sensitive to interest rates.

“Buying a home is a big decision. SBI has always been at the forefront in keeping the benefit of customers first. This interest rate reduction will help home buyers come closer to their dream home,” said Rajnish Kumar, Mmanaging Director, National Banking, SBI.

Close competitor HDFC has also similar rates of interest. Since may 2017, the rate for the new customers of HDFC is at 8.50 per cent for all customers for loans between Rs 30 lakh and Rs 75 lakh. It is 8.55 per cent for loans above Rs 75 lakh for …read more