State Bank of India (SBI) has reduced the home loan interest rates to 6.7 per cent for any loan amount. This is a festive offering by India's largest bank that is not only pulling rates to the lowest level in a decade but also making them available to both salaried and non-salaried people.
The big move is the cut across all loan amounts, earlier a borrower availing a loan greater than Rs 75 lakh, had to pay an interest rate of 7.15%. With the new rates the interest burden is brought down by a whole 45 basis points.
The rate of interest applicable for a non-salaried borrower was 15 bps higher than the interest rate applicable to a salaried borrower in the past. The new rate of 6.7% is applicable to both as SBI has said that it has removed this distinction.
SBI has also waived off the processing fees completely and will be offering interest concession based on the credit score of the borrower.