The State Bank of India (SBI) on Friday announced reduction in home loan interest rates by 10 basis points (bps) for salaried women who take a loan of above Rs 75 lakh, effective from June 15.
For others, the rate of interest will be 8.60 per cent, India’s largest home loan provider said. This is the second reduction in interest rates in two months, SBI said, adding that home loan rates offered are “lowest in the industry”.
This will help banks in saving capital which can be used for further lending.
SBI’s home loan growth in FY17 was at 16.8 percent at Rs 222,605 crore. SBI leads the home loan market share followed by HDFC and ICICI Bank.
Last month, SBI had reduced interest rates on home loans up to Rs 30 lakh to be offered at 8.35 percent for women borrowers and 8.40 percent for others.
Other top major lenders including HDFC, ICICI Bank and Axis Bank have already reduced rates on loans up to Rs 30 lakh at 8.35 percent for women 8.40 percent for others. Axis Bank offers the 8.35 percent to all borrowers, not just women.
“Taking a cue from the recent RBI reduction in risk weightage on home loans, SBI is passing on the benefit to its customers by reducing its interest rates on home loan above Rs 75 lakh
