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- SBI Home Loan Interest Rates May 2021 Update | SBI Bank Reduces Interest Rates On Home Loan; All You Need To Know
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Mumbai6 minutes ago
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- Loans above 75 lakhs will be available at 7.05%
- Applying with both will give 5 bps discount
The country’s largest bank State Bank of India (SBI) has again reduced the interest rates on home loans. Home loan up to 30 lakh rupees will now be available at 6.70% interest rate. If the home loan is more than 30 lakhs, then you will have to pay interest at the rate of 6.95%.
Loan up to 30 lakhs at 6.70
The bank gave this information on Saturday. The bank said that the rate of 6.95% would be applicable on home loans ranging from Rs 30 lakh to Rs 75 lakh. If the loan is more than 75 lakhs, then the interest rate will increase to 7.05%. If you apply for a loan from its banking app YONO, then you will get a discount of 5 bps.
SBI is the leader in home finance
SBI Managing Director of Retail and Digital Banking (MD) C.S. Shetty said that SBI is a market leader in home finance and interest rates are kept low in view of the sentiment of customers in the home loan market. We believe this new decision will be good for both home loan takers and the real estate industry. Customers can get a further discount of 5bps by applying for a home loan through YONO.
Interest rates were at 6.70% as of March
Explain that in the last financial year, the bank reduced its home loan interest rates to 6.70%. It was up to 31 March and the bank again raised it to 6.95% in April. But given the second wave of Corona and already low rates in the banking industry, the bank has again brought it back to the old rate.
Most interest rates are still below 7%
Still in the banking industry, loans are being available at very low interest rates. Most banks have interest rates ranging from 6.70 to 6.90%. HDFC Limited is still offering home loans at 6.70%. Kotak Mahindra is offering home loan at the lowest 6.65%. Institutions like LIC Housing and Union Bank are also offering home loans ranging from 6.80 to 6.95%.
Interest rates are less than one and a half year
Home loan rates in the country have reached their historic low for the last one and a half years. Until a few years ago, home loan interest rates used to be above 8%. The banking industry believes that home loan interest rates may still remain below 7% by the end of this year. Before 31 March, when interest rates were further reduced, some states gave half exemption in stamp duty and registration and the sale of homes was fiercely when people needed a home to work from home. In cities like Mumbai, home sales had reached record levels for many years.
