New Delhi: Home loan rates have fallen to their lowest level in six years with the State Bank of India, the country’s largest lender, cutting the effective rate to 8.6% from 9.10%.
SBI, the country’s biggest lender by assets, on Sunday cut its lending rates by 90 basis points for maturities ranging from overnight to three year tenures. It has reduced the marginal cost of funds based lending rate (MCLR) to 8 per cent for one year tenure, from 8.9 per cent.
So, home loans up to Rs 75 lakh, earlier available at 9.1%, can now be taken at 8.6%. For others, the rate would be 8.65%, against 9.15% earlier. Besides SBI, the Union Bank of India and the Punjab National Bank also cut rates.
The reduction in lending rates by several public sector banks will make the affordable home loan scheme, announced by PM Modi on Sunday, available at a little over 4% for borrowers seeking loans of up to Rs 9 lakh.
The Prime Minister on December 31 announced that loans of upto Rs 9 lakh taken in the New Year under two new scheme of Pradhan Mantri Awas Yojana will receive interest subvention of 4 per cent and loan of upto Rs 12 lakh will get a 3 per cent interest waiver.