With RERA coming into effect, SBI slashes low-cost home loan rates
Pushing for Prime Minister Narendra Modi's vision of providing "Housing for All" by 2022, State Bank of India (SBI) announced rate cut in low-cost home loans by 25 basis points to 8.35%.
With this reduction SBI's offering is the lowest in the market. The new rate will be effective from May 9th, 2017. India's largest bank has cut the rates for home loans under Rs 30 lakh by 0.25% and for loans above Rs 30 lakh, the rates were slashed by 10 basis points.
Commenting on the big push, Rajnish Kumar, Managing Director – NBG, SBI said, “We have seen a steep hike in the Home Loan enquiries recently and reduction in rates will further help millions of home buyers fulfill their dream of owning a home. Individuals can apply for Home Loans through multiple channels. SBI offers bouquet of Home Loan products catering to different sections of the society”.
The bank's announcement came in after the Real Estate (Regulation & Development) Act 2016 (RERA) finally came into effect from the beginning of this month.
In March, last year the upper house Rajya Sabha had passed the RERA Act, which was aimed to bring transparency to the real estate sector. With this, the real estate sector is expecting a revival with the demand picking up.
At 1437 hours the shares of the bank were trading at Rs 299.05 per piece, up 1.05% or Rs 3.10 on BSE.