After RBI's changes in risk-weight; SBI reduces home loan rates by another 10 basis points
India's largest bank State Bank of India (SBI) has made another revision in its interest rates for home loan category. SBI has trimmed interest rates for second time in last two months.
- SBI revises home loan interest rates by 10 basis points
- RBI reduced risk weightage on home loans in second monetary policy meet
- SBI made second reduction in home loans rates in last two months
State Bank of India (SBI) on Friday once again cut interest rates for its home loans, this time for loans of above Rs 75 lakh.
Now home loans above Rs 75 lakh will be cheaper by 10 basis points with effects from June 2017.
Rajnish Kumar, MD, National Banking, SBI, “Buying a home is a big decision. SBI has always been at the forefront in keeping the customers benefit first. This interest rate reduction will help home buyers come closer to their dream home”.
Revised interest rates will be 8.55% per annum for salaried women borrowers and 8.60% per annum for others.
This move comes right after when, the Reserve Bank of Indian in its seconD-monetary policy reduced the risk weightage on home loans.
RBI on June 07, announced that for home loans above Rs 75 lakh – Loan to value will be at 75% with risk weight of 50% - this has been brought down by 25% from previous risk weight.
Kumar said, “Taking a cue from the recent RBI reduction in risk weightage on home loans, SBI is passing on the benefit to its customers by reducing its interest rates on home loan above Rs. 75 lakhs."
This is the second reduction in interest rates in last two months. SBI had reduced its interest rates by 25 basis points on April 9, 2017.