SBI cuts interest rates on bigger home loans

State Bank of India, the largest Home Loan Provider in India has reduced interest rates of high value home loans.

Home Loans above Rs. 75 lakhs will now be cheaper by one-tenth of a percentage from 15 June, 2017.

The revised interest rates will be 8.55% p.a. for salaried women borrowers. For others the rate of interest will be 8.60% per year.

This is the second reduction in interest rates in last two months. SBI had reduced its interest rates by 25bps on 09 April 2017.

Besides SBI, several other banks have reduced interest rates in the last one week, including Indian Overseas Bank, which cut rates today.

“Taking a cue from the recent RBI reduction in risk weightage on home loans, SBI is passing on the benefit to its customers by reducing its interest rates on home loan above Rs. 75 lakhs,” said Rajnish Kumar, MD, National Banking, SBI.

RBI had, earlier this week, cut the risk weightage of home loans, allowing banks to set apart a lower number as provision against such loans going bad.

State Bank of India (SBI) is the largest commercial bank in India in terms of assets, deposits, branches, customers and employees.

As on April 01, 2017, the bank has over 24 thousand branches in India and 199 offices in 37 other countries. It has 59,000 group ATMs and a customer base of more than 50 crore.