Days after the Reserve Bank of India (RBI) cut down policy repo rate by 25 basis points, country's largest lender State Bank of India (SBI) has brought down the home loan interest rate for all loans up to Rs 30 lakhs. This means that the SBI customers will now have to pay lesser EMIs on their home loans. SBI’s home loan interest rate cut, is despite the bank keeping its MCLR rate unchanged for this month, which is a good news for customers. As MCLR, are the benchmark guided by RBI for banks to decide interest rates on loans below this limit. 

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Rajnish Kumar, Chairman, SBI said, “As the nation’s largest lender, we have always kept customer interests at the centre. SBI has the highest market share of the home loans market and it is only appropriate that we empower the large lower and middle class segment by transmitting the rate cut announced by the RBI”.

After the latest cut, here is how SBI's loan rates compare against HDFC Bank and ICICI Bank:

SBI’s home loan interest rates: At SBI, for women will now be charged interest rate between 8.75% to 8.85% for home loan up to Rs 30 lakh. Non-salaried women will get interest rate ranging from 8.90% to 9%. The others categories will now have home loan interest rate between 8.80% to 8.90%, whereas the non-salaried ones will see rate of 8.95% to 9.05%. 

Calculate EMIs - For example if you have taken home loan up to Rs 30 lakh from SBI at 8.90% rate for tenure 10 years. Then your EMIs are Rs 37,841 every month with total interest of over Rs 15.40 lakh.

(SBI Calculator)

HDFC Bank home loan interest rates: At HDFC Bank, the home loan rate for women up to Rs 30 lakh loan stands at 8.90%, whereas the non-salaried women will bear 9.05% interest rates.

The others category sees 8.95% interest rate on salaried group, on the other hand, the non-salaried group records 9.10% interest rate. 

Calculate EMIs - If an home loan up to Rs 30 lakh is taken from HDFC Bank, at an interest rate of 8.95% for tenure of 10 years. Then, the EMIs over here come at Rs 37,922 every month with interest amount of over Rs 15.50 lakh.

(HDFC Calculator)

ICICI Bank home loan interest rates: Unlike SBI and HDFC Bank, ICICI Bank does not have a limit of Rs 30 lakh home loan. They offer up to Rs 35 lakh in minimum category, and it has 9.10% interest rate on home loans to salaried borrowers. This means no matter either you are a women or others category, both pay similar interest rate at ICICI.

Meantime, ICICI Bank also gives 9.15% interest rate to self-employed for home loan up to Rs 35 lakh. Notably, one can avail for home loan up to Rs 30 lakh at ICICI, as the limit is Rs 35 lakh. 

Calculate EMIs - For example if you take home loan of Rs 30 lakh at ICICI with interest rate of 9.10% for 10 years tenure. Then your EMIs come at Rs 38,165.28 every month with interest payable nearly Rs 15.80 lakh. 

(ICICI Bank Calculator)

EMIs are monthly installment paid by a borrower for availing home loan from a bank. The EMIs include principal amount and interest rate depending upon the value of the home loan they take. 

Interestingly, one can expect other banks including HDFC Bank and ICICI Bank to also give in relief to customers in terms of home loan after SBI has made the move. In pas, every time when SBI made a cut in home loan rates, others have followed the suit. Hence, it would be interesting to see who offers best EMIs ahead, for now its SBI.