SBI cuts lending rate for new home loans by 25 bps - Business Standard

Country's largest lender State Bank of India has cut interest rate for new home loans by 25 basis points (bps) at 9.9%. This brings SBI's offering on par with rate charged by mortgage lender HDFC. 

The revised rate will be applicable for all new home loans sanctioned on or after 13th April, 2015, SBI said in statement. The old loan rate for home loans was 10.15%. 

SBI executive said there are two components home loan cuts. One is the 15 basis points cut due to the repo rate revision. The second is the 10 bps additional cut to keep offering competitive prices. 

After the lending rate cuts by banks, HDFC had reduced its home loan rate by 20 bps to 9.9%. 

Earlier HDFC gave home loans at 10.10%, while SBI charged 10.15%. Private sector lender ICICI Bank is also now hawking home loans between 9.9-10.0%. Its old rates were between 10.15 -10.25%. 

SBI said the interest rate for the existing floating rate home loan borrowers has also been reduced to the extent of reduction in the bank's base rate (15 bps from 10 April 2015). 

For new home loans by women, SBI is offering extra five basis point rebate. So the effective rate for them will be 8.5%. 

The revised EMI per lakh for a loan tenure of 30 years w.e.f. 13.04.2015 will be Rs 871 as against Rs 889 respectively, prior to reduction in the base rate.  

SBI executives said its home loan portfolio has grown by about 15% in 2014-15. With rate reduction, SBI expects uptick in demand for home loans and is looking to clock 18% growth in 2015-16. 

Its home loan book stood at Rs 1,52, 905 crore (58.5% of retail loans) by end of December 2014. 

via Business - Google News http://news.google.com/news/url?sa=t&fd=R&ct2=in&usg=AFQjCNGssTnR6CJ2jGYOa-WoPuM00-EiLg&clid=c3a7d30bb8a4878e06b80cf16b898331&cid=52778800778726&ei=PGYqVaCWA8b_3QGO24DoDg&url=http://www.business-standard.com/article/finance/sbi-cuts-lending-rate-for-new-home-loans-by-25-bps-115041200441_1.html

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