SBI's Festive Season Offer on Home Loan; Slashes Interest Rate to 6.70%

The State Bank of India reduced the Home Loan interest rates to 6.7% to support the home loan customers so that the home loans get more affordable amid Festive Season. The largest lender in our country is offering a credit score linked to home loans at 6.70% irrespective of the loan amount.

SBI to Offer Credit Score Linked Home Loans

Previously, a borrower availing a loan is greater than Rs 75 lakh, had to pay an interest rate of 7.15% but with the introduction of festive season-related offers. A borrower can now avail of the home loan for any amount rate of 6.70%.

The offer of festive season results in a saving of 45 basis points, which translates to an interest saving of more than Rs 8 lakh for Rs 75 lakh loan with a tenure of 30 years. Also, the rate of interest is applicable to non-salaried borrowers was 15 bps higher than the interest rate applicable to salaried borrowers.

SBI Removes Distinction between Salaried & Non-Salaried Home Loan Borrowers

The state-run bank removed the distinction between salaried & non-salaried borrowers. This means that now there is no occupation-linked interest premium being charged to prospective home loan borrowers. 

It will lead to further interest savings of 15 bps to non-salaried borrowers. The State Bank of India (SBI) waived off processing fees completely & is offering attractive interest concession based on the Credit Score of the borrower.

Generally, the concessional interest rates are applicable for loans up to a certain limit & are linked to the profession of the borrower. This time, we made offers even more inclusive & offers are available to all segments of the borrowers irrespective of loan amount & the profession of borrower said C.S. Setty, the Managing Director of SBI.

Mr. Setty also said that “6.70% of home loan offer is applicable to balance the transfer cases. We believe zero processing fees & concessional interest rates in the festive season will make the homeownership even more affordable”

On 16^th September (Thursday), the shares of State Bank of India gained more than 3%, by hitting an intraday high of Rs 458.65, so far, on the BSE. The SBI has opened on the BSE at Rs 445.10 & its shares were last trading 3.26% higher at Rs 458.20 apiece.