Now, SBI cuts home loan rate
to 6.7%, nixes processing fee
OUR BUREAU
Mumbai, September 16
Days after Kotak Mahindra
Bank reduced its home loan
interest rates, State Bank of
India joined the battle, offer-
ing home loans starting from
6.70 per cent against 6.80 per
cent earlier, waiving the pro-
cessing fee and the occupa-
tion-linked interest
premium, as part of its fest-
ival offer.
The country’s largest pub-
lic sector bank, in a state-
ment, said it is offering credit
score-linked home loans at
6.7 per cent, irrespective of
the amount. Earlier, a bor-
rower taking a loan of more
than ₹75 lakh, had to pay an
interest rate of 7.15 per cent.
“With the introduction of
the festival offers, a borrower
can now get a home loan for
any amount at 6.70 per cent.
The offer results in a saving
of 45 basis points (bps)
which translates into a in-
terest saving of more than ₹8
lakh for a ₹75-lakh loan with
Challa Sreenivasulu Setty, MD
(Retail & Digital Banking), SBI
a 30-year tenure,” the bank
said.
Further, SBI has removed
the distinction between a
salaried and a non-salaried
borrower. “Now, no occupa-
tion-linked interest
premium is being charged to
prospective home loan bor-
rowers. This would lead to a
further interest saving of 15
bps to non-salaried borrow-
ers,” SBI said.
Tough competition
Earlier, the rate of interest
applicable for a non-salaried
borrower was 15 bps higher
than for a salaried borrower.
SBI scrapping this difference
comes in the backdrop of Ko-
tak Mahindra Bank’s an-
nouncement on September 9
that it has slashed home loan
interest rates by 15 bps from
6.65 per cent to 6.50 per cent.
The private sector bank
said its special rate is a lim-
ited period offer that ends on
November 8.
Challa Sreenivasulu Setty,
Managing Director (Retail &
Digital Banking), SBI, said:
“Generally, the concessional
interest rates are applicable
for a loan up to a certain
limit and are also linked to
the profession of the bor-
rower. This time, we have
made the offers more inclus-
ive and are available to all
segments of borrowers irre-
spective of the loan amount
and the profession of the
borrower.”
Setty observed that the
zero processing fee and con-
cessional interest rate in the
festival season will make
home ownership more af-
fordable.