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State Bank of India has pared the interest rate on home loans by 15-20 basis points even as it has rolled out a scheme whereby it will offer women home loans 5 basis points cheaper than the normal rate.
This move, which comes on the heels of the central bank keeping its policy rates on hold, could prompt other banks and non-banking finance companies to follow suit.
India’s largest bank has also raised the slabs for home loans in view of the rising property prices. The new slabs will be — up to Rs 75 lakh (up to Rs 30 lakh earlier) and above Rs 75 lakh (above Rs 30 lakh earlier).
Henceforth, a uniform interest rate of 10.15 per cent will be charged on home loans up to Rs 75 lakh (against the current rate of 10.30 per cent for loans up to Rs 30 lakh).
The bank will charge 10.30 per cent interest on home loans above Rs 75 lakh (against the current rate of 10.50 per cent for loans above Rs 30 lakh).
Where the woman is the sole applicant or first co-applicant and also the sole or first co-owner of the property, the interest rate will be 5 basis points lower.
The revised Equated Monthly Installment (EMI) per lakh for a loan tenure of 30 years will be Rs 885 (for women) and Rs 889 (for others) against the prevailing EMI of Rs 900.
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