Slashes interest rate by 0.15%; PNB offers festive bonanza
Picture used for representational purpose. (Photo: PTI)
MUMBAI: India’s largest lender, the State Bank of India (SBI) on Tuesday has revised its home loan rates downwards by upto 15 basis points, a move which is likely to be followed by other banks.
Punjab National Bank. the second largest state-run bank, meanwhile, has offered full waiver of processing fee and documentation charges on housing, car and two-wheeler loans. It also offered housing loan of up to Rs 2 crore will attract 10.25 per cent interest rate and the loan above Rs 2 crore at 10.50 per cent.
SBI has now decided to offer a uniform home loan rate to all categories of borrowers irrespective of the loan size with effect from August 26, 2014. However, the new rate would be applicable for only new borrowers and the existing borrowers will have to service their loans at a slightly higher rate.
While the revised rate would benefit home loan borrowers across the spectrum, it will be particularly beneficial to those planning to avail loans above Rs 75 lakh. Earlier a loan above Rs 75 lakh attracted an interest rate of 10.25 per cent for women borrowers and 10.30 per cent for others.
Under the revised limit, women borrowers with home loan above Rs 75 lakh will have to pay an interest of 10.10 per cent while others have to shell out 10.15 per cent. Those taking loans of above Rs 75 lakh having tenure of 20 years, earlier paid EMI of Rs 73,874 per month. Under the revised rate, the monthly EMI would come down to Rs 73,124 pm.
“Among the premium customers, our rate of interest was little higher compared to our competitors. That is the reason why we decided to bring down the rate of interest for loans above Rs 75 lakhs. However, our rate of interest for loans below Rs 75 lakh is very competitive when compared to our competitors,” said an SBI official.
( Source : dc correspondent )
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