Mumbai, (IANS) - The country's largest home loan provider State Bank of India (SBI) has announced reduction in the home loan rates by 25 basis points (bps) from 8.60% to 8.35% per annum (for loans up to Rs 30 lakh), which will come into effect from May 9. Interest rates for customers availing a home loan above Rs 30 lakh have also been reduced by 10 bps.
"SBI has announced rate cut by 25 basis points to 8.35% per annum. With this reduction, SBI's offering is the lowest in the market," the public lender said. The effective interest rate for all eligible salaried customers will be 8.35% per annum for loans up to Rs 30 lakh. Over and above, an eligible home loan customer can also avail of an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme.
Rajnish Kumar, Managing Director - National Banking Group, SBI, said: "We have seen a steep hike in the home loan enquiries recently and reduction in rates will further help millions of homebuyers." "Individuals can apply for home loans through multiple channels. SBI offers a bouquet of home loan products catering to different sections of the society."