New Delhi: State Bank of India (SBI) has announced a rate cut in home loans by 25 basis points to 8 point 35 percent. The new rate will be effective from tomorrow. After the reduction, the effective interest rate for all customers will be 8.35 per cent for loans up to Rs 30 lakh. According to a statement issued by the India’s largest bank, the effective interest rate for all eligible salaried customers will be 8.35 per cent for loans up to Rs 30 lakh. Apart from this, eligible customer can also avail of an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme.
The interest rates for customers availing a Home Loan above Rs 30 lakh have also been reduced by 10 basis points. According to the bank, this will push both construction finance and home finance for affordable homes. The reduction in rates is seen as directly related to recent cut in banks fixed deposit rates by up to 50 basis points for various maturities. Last week, SBI had cut its term deposit rates by up to 50 basis points (bps) for amounts below Rs one crore with maturity period ranging from two to 10 years. (UNI)