State Bank of India cuts mortgage interest rates to 6.7%
The State Bank of India, the country’s largest lender, said on Saturday it had reduced interest rates on mortgage loans. Rates now start at 6.7% for loans up to Rs 30 lakh.
The state bank has a portfolio of real estate loans of around Rs 5,000 billion, which makes it the market leader.
The bank will charge 6.95% interest for loans between Rs 30 lakh and Rs 75 lakhs Big loans above Rs 75 lakh will attract a rate of 7.05%, the bank said in a statement.
Earlier in March, the bank cut the rate to 6.7% as part of a festive offer before lowering it to 6.95% which went into effect on April 1.
CS Setty, general manager of banking for the retail and digital banking division, said: “Affordability for the consumer is increasing dramatically with current mortgage interest rate offerings which drastically reduce EMI amounts.
I am sure that these measures will also give a boost to the real estate sector ”.
SBI also offers a concession of 5 basis points (0.05%) to female borrowers. An additional concession of 5 basis points is offered if the loan is used through the bank’s mobile app. “To improve the customer experience through the YONO app, a 5 basis point concession is offered as a digital incentive to our home loan customers,” the lender said.