Going for a State Bank of India or SBI home loan? Then you should hold your application till August 31st! Why? If you do this, your interest rate would be 0.2 per cent lower, leading to a smaller home loan EMI burden. India's largest commercial bank is going to cut its home loan interest rates from 8.25 per cent to 8.05 per cent from 1st September 2019. The three days delay in your SBI home loan application would not only help you save your hard-earned money in lower EMI but a hefty amount that you would be paying on interest during the loan tenure.

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Source: SBI Home Loan Calculaor

Recently, SBI has reduced MCLR by 15 bps due to which overall home loan interest rate is now reduced by 35 bps since April 2019. Currently, SBI offers the cheapest home loan with an interest rate of 8.05 per cent as repo rate linked home loan and this rate will be applicable to all existing and new loan from 1st September.

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So, in current circumstances, if a person goes for SBI home loan of Rs 25 lakh for a tenure of 20 years, his or her monthly EMI would be Rs 21,302, while he will have to pay Rs 26,12,394 as interest during the loan period. However, if the loan applicant delays his or her SBI home loan application to September 1st, his or her monthly home loan EMI would be Rs 20,989 while he or she would pay Rs 25,37,327 as home loan interest during the home loan period. So, if the person delays her or his SBI home loan application to September 1, he or she would pay Rs 313 lesser in monthly home loan EMI. This will would lead to saving Rs 75,067 in home loan interest payments!

Source: SBI Home Loan Calculator

Hence, a home loan applicant is advised to hold his or her SBI home loan till September 1 and avail the benefits of SBI's RLLP (Repo Linked Lending Pattern) that is going to change the Indian banks loan lending pattern for sure.