SBI reduces home loan rate to 6.70%

Mumbai, Sep 16:  Lending major State Bank of India on Thursday launched credit score-linked home loans at 6.70 per cent, irrespective of the amount.

Prior to the festive offer, a borrower availing a loan greater than Rs 75 lakh had to pay an interest rate of 7.15 per cent.

"With the introduction of the festive offers, a borrower can now avail home loan for any amount at a rate as low as 6.70 per cent.

"The offer results in a saving of 45 bps which translates to a huge interest saving of more than Rs 8 lakh, for a Rs 75 lakh loan with a 30 year tenure," it said.

Besides, the SBI has removed the distinction between a salaried and a non-salaried borrower.

"Now, there is no occupation-linked interest premium being charged to prospective home loan borrowers. This would lead to a further interest saving of 15 bps to non-salaried borrowers."

Earlier, the rate of interest applicable for a non-salaried borrower was 15 bps higher than those of salaried ones.

"Generally, the concessional interest rates are applicable for a loan up to a certain limit and are also linked to the profession of the borrower. This time, we have made the offers more inclusive and the offers are available to all segments of borrowers, irrespective of the loan amount and the profession of the borrower. The 6.70 per cent home loan offer is also applicable to balance transfer cases," SBI's Managing Director, Retail & Digital Banking, C.S. Setty said.

"We believe zero processing fees and concessional interest rates in the festive season will make homeownership more affordable."