New Delhi: State Bank of India (SBI) on Monday announced a rate cut in home loans by 25 basis points – from 8.6 per cent to 8.35 per cent – the “lowest rate in the market”, sources said.
The new rate will be effective from May 9, 2017. The effective interest rate for all customers will be 8.35 per cent for loans up to Rs 30 lakh.
The eligible borrowers can also an avail an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme, SBI said. Under the Pradhan Mantri Awas Yojana (Urban) for middle-income groups, home loan borrowers buying their first home are eligible for subsidy on interest repayments.
The rate cut will give a fillip to the affordable housing segment.