What's New With SBI Home Loans?
State Bank of India (SBI) recently cut its minimum lending rate to from 9.85 to 9.7%. The interest rate cut is effective from June 8, 2015. This is SBI's minimum lending rate, the rate at which the bank lends to women home buyers. The interest for men too declined from 9.9% to 9.75%. SBI cut its minimum lending rate after the Reserve Bank of India (RBI) cut the repo rate by 25 basis points in June.
The RBI cut the repo rate by 75 basis points in three installments in the current year, from 8 to 7.25%. In June, SBI was the first to cut the home loan interest rates, after the RBI announced the repo rate cut. This is not unprecedented. In the recent past, SBI was the first among leading Indian banks to pass on the repo rate cut of the RBI to home buyers.
On April 7, SBI had cut the home loan interest rate by 15 basis points, from 10.5% to 9.9%. But, the rate for women home buyers was cut from 10% to 9.85%. This was then the lowest home loan interest rate in India. In April, SBI was the first among Indian banks to ease the lending rates in many months, despite the RBI having cut the repo rate twice. Loan tenure or EMI on home loans will now decline.
But, this is not the only reason why SBI is a good place to apply for home loans. SBI is the largest provider of loans for individuals and businesses in India. On May 29, SBI launched a customer acquisition solution to allow potential home buyers to apply online for a home loan. If want to apply for a home loan, you can visit SBI website, gauge your home loan eligibility and get personalized quotes. While applying online, you are expected to upload all the necessary documents. The website will give you instant approvals. After the submission process is done, SBI officials will contact you, and complete the paper work remaining to be done. While buying apartments in India, the online home loan approval process of SBI will cut down the processing time.
See SBI's EMI Calculator for home loan here.
On PropGuide, read more about how interest rate cut will affect your home loans.