The State Bank of India (SBI) has cut mortgage interest rates to 6.7% to support home loan customers to make home loans more affordable during the holiday season. The nation’s largest lender offers home loans tied to the 6.70% credit score regardless of the loan amount, according to a statement shared by the bank today.
Previously, a borrower with a loan greater than Rs. 75 misses, had to pay an interest rate of 7.15%, but with the introduction of holiday-related offers, a borrower can now qualify for a home loan for any amount at a rate of 6.70 percent, SBI said in its statement. .
The holiday offer results in a saving of 45 basis points (bps), which translates into an interest saving of over Rs. 8 missing, for a Rs. 75 missing loan with a duration of 30 years. In addition, the interest rate applicable to a self-employed borrower was 15 basis points higher than the interest rate applicable to a salaried borrower.
The state bank removed the distinction between a salaried borrower and a non-salaried borrower. This means that no occupancy-related interest premium is now charged to potential mortgage borrowers. This will lead to a further interest saving of 15 basis points for non-salaried borrowers.
SBI has waived processing fees completely and offers an attractive interest reduction based on the borrower’s credit rating.
Generally, concessional interest rates are applicable for a loan up to a certain limit and are also related to the profession of the borrower. This time around we have made the offers more inclusive and the offers are available to all segments of borrowers regardless of the loan amount and the borrower’s profession, ”said Mr. CS Setty, Managing Director (Retail & Digital Banking), SBI.
“The 6.70% mortgage offer is also applicable to cases of balance transfer. We believe that zero processing fees and great interest rates during the holiday season will make homeownership more affordable, ” Setty added.
On Thursday September 16, shares of the State Bank of India gained more than 3%, reaching an intra-day high of Rs 458.65, so far, on BSE. The SBI opened on BSE at Rs 445.10 and its shares were last trading 3.26% at Rs 458.30 each.