SBI cuts Home Loan Interest Rate
SBI cuts home loan interest rate by up to 0.25%
In a recent development, the State Bank of India, in an effort to match against its competitors ‘HDFC Bank’, the State Bank of India cuts home loans interest Rate by up to 0.25%. This recent deduction is a sort of relief to the new borrowers, who will feel much relieved because of the deductions.
State Bank of India Home Loans Interest rates deductions
The base rate deduction, which has been to 0.15%, the recent deduction in the interest rate by 0.25% is more than it. In the recent statement issued by the State Bank of India, the home loan rate, which was kept at around 10.1% for women has been reduced to the interest rate of around 9.85% or something. While leaving aside Women borrowers, the interest rate has been kept at around 9.9% in comparison to the previous rate of 10.15%. The major highlight of the recent announcement is that the deductions are in effect with the home loans sanctioned after April 12th, 2015.
Sole Purpose of deductions
This announcement has been done in an effort to counter- attack the announcement by HDFC Bank, which was announced 2 days prior to it. In an important announcement, HDFC Bank made an announcement in the reduction of the home loan rate by about 0.2% for all the borrowers either they are existing or the new ones.
State Bank of India, which sees HDFC Bank as the main competitors in the category of Home loans, are of the motive to ensure the maximum customer base meant for home loans comes to their doorsteps, which are the most spread bank in the country.
Deductions by many Banks
However, it must be kept in mind; more recently many banks announced the deduction in the loan rates with the immediate effect. Many banks like Oriental Bank of Commerce and many more made the changes as deductions in the interest rates.
What caused these deductions?
The major reason for the deductions can be concluded, because of the recent meeting of the Raghuram Rajan, the RBI Governor, who had some tough talks with the bankers on the same. In a blame game, the RBI Governor blamed several banks for not providing the advantages to the people of two repo cuts. He even went ahead with the claims and termed it as ‘nonsense’ for the claims by the lenders that the funds cost are in fact higher.
Whatever it is, the entire process gave some relief to the borrowers and with the people getting some sort of deductions, even by 0.25% it will surely make some difference to many people, who were looking for the relief from the banks for quite a long time. Overall, when we talk about the borrowers, they are quite happy with the deductions by State bank of India, who are the favorites for many borrowers for Home Loans. Some sort of relief and pleasure can be seen on the faces of the people!