SBI cuts home loan interest rate by 10 bps to 6.7% linked to CIBIL score

SBI cuts home loan interest rate by 10 bps to 6.7% linked to CIBIL score

By Administrator_ India

Capital Sands

The country’s largest lender, the State Bank of India (SBI) has slashed the interest rate on Home Loans by 10 basis points under a limited period offer till the end Month.

The revised rates will start with 6.70 percent and would be linked to the CIBIL credit score. The borrower with a higher CIBIL score will earn a fine interest rate.

For home loans up to Rs 75 lakh, the rates are 6.9 percent for CIBIL score between 700-750; for scoring between 751 and 800, the rate is 6.8 percent and for a score above 800, interest will be 6.70 percent. This is floor, a 10 basis point lower the last best offer, Saloni Naryan, deputy managing director (retail Business, SBI said.

The rates will start at 6.75 percent for loans above Rs 75 lakh and would increase with lower CIBIL scores.

It is important to extend better rates to customers who maintain good repayment history. The affordability for the consumer increases immensely with the present offerings as the EMI will be reduced, she said.

Customers can also apply from the ease of their home via YONO App to get additional interest concession of five bps. On the eve of International Women’s day, a special 5 bps concession is being made available to the women borrowers.

Narayan said in January, the SBI home loan portfolio touched the Rs five trillion mark. The home loan sanctions have crossed Rs one trillion during this year. Home loan, which constitutes 23 percent of the Bank’s domestic advances, has grown by 9.99 percent (Year-on-Year) till December 2020.

The bank is aiming to double that to Rs 10 trillion in five years. Last month its Chairman Dinesh Khara had said it was expecting its home loan portfolio to touch Rs seven trillion by the financial year 2023-24 (FY24). The growth would be driven by an increased desire among youth to own homes early in life, rising incomes, and government policies like the cuts in stamp duty and subsidy, the chairman had said.

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