SBI Cuts Home Loan Interest Rate To Lowest In Industry
SBI is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees.
SBI or State Bank of India has reduced its interest rate on home and auto loans. India’s largest bank SBI said that it has reduced its interest rates on home loan and auto loan by 5 basis points, effective November 1.
After the latest rate revision, SBI is offering home loans at an interest rate of 8.30 per cent, from 8.35 per cent earlier, which it claims to be the lowest in the industry. Similarly, SBI has reduced its interest rate on auto or car loan to 8.70 per cent, from 8.75 per cent earlier. Other banks are expected to follow suit and reduce their home and auto loans rates.
In a statement, SBI said: “The effective interest rate for all eligible salaried customers will be 8.30 per cent for (home) loans up to Rs. 30 lakh.”
Over and above of 8.30 per cent rate, an eligible home loan customer can also avail of an interest subsidy of Rs. 2.67 lakh under the Pradhan Mantri Awas scheme.
SBI also said that home loan rates have been reduced by 5 basis points in all the brackets.
PK Gupta, MD for retail and digital banking at SBI said: “With this reduction in rates, we are offering lowest rates for most of our product offering in the retail loans. Lower rates along with wide distribution network and use of digital technology to enhance customer experience is a perfect package for any retail loan customer.”
For SBI car loan customer, the interest rate ranges from 8.70 per cent to 9.20 per cent per annum compared to earlier range of 8.75 per cent to 9.25 per cent. The exact rate depends on the amount of loan and the credit score of the individual.
SBI is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees. The bank has a deposit base of 26.02 lakh crore.
From November 1, SBI also cut interest rate it offers on fixed deposits or FDs. It has interest rate by 25 basis points across most maturities. The one-year SBI fixed deposit will fetch an interest rate of 6.25 per cent, from 6.50 per cent earlier.