Chennai: India’s largest bank, State Bank of India (SBI) has decided to cut interest rates by 25 basis points, reducing it to 8.35% from 8.60%, on housing loans till July 31. The step to promote affordable housing, which is in line with the Prime Minister’s vision of housing for all, will be available for over two months.
The bank is also offering an incentive to the builders who take up affordable housing projects in the form of interest concession up to 35 basis points.
D Ramesh Babu, General Manager of Tamil Nadu division announced in a press conference that the low-interest rates will comply for a period of two years on home loans up to 30 lakhs. “This rate is applicable to all salaried borrowers which form over 80% of our home loan book, which will benefit the first time home buyers. The floating rate structure shall continue based on the preference of the customer,” he added.
A statement by SBI also said that over this rate of interest an eligible loan customer could also claim an interest subsidy of Rs. 2.67 lakhs under the Pradhan Mantri Awas Yojana scheme.
