Good news for homebuyers: SBI slashes interest rates

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SBI news today: State Bank of India (SBI), India’s largest lender, on May 1 reduced interest rates on home loans starting from 6.7% for loans up to Rs 30 lakh and 6.95% for loans above Rs 30 lakh to Rs 75 lakh. Home loans above Rs 75 lakh are offered interest rates of 7.05%.  Moreover, to enhance customer experience through the YONO app, a 5 bps concession is being offered as a digital incentive. Women borrowers will also get a special concession of 5 bps.

“SBI, being the market leader in home finance, assumes the ownership in bolstering consumer sentiments in the home loan market. The affordability for the consumer increases immensely with the present home loan interest rate offerings which reduce the EMI amounts substantially. I am sure these measures will give a fillip to the real estate industry too,” said CS Setty, MD (Retail & Digital Banking).

The bank stated in the press release that it is committed to empowering the women borrower and thus, a special 5 bps concession is being made available to them.

“Customers can also apply for a loan from the ease of their home via the YONO App to earn an additional interest concession of 5 bps,” it said.

State Bank of India is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country. The home loan portfolio of the bank has crossed the milestone of Rs 5 lakh crore. The bank has auto loan book of Rs. 75,937 crore, as on December 31, 2020 and has a deposit base of over Rs. 35 lakh crore and advances of more than Rs. 26 lakh crore with CASA ratio of about 45%. SBI commands over 34% market share in home loans and around 33% in the auto loans segment.