SBI cuts home loan rate to 6.7%, BoB to 6.75%

New Delhi: The country's largest lender, State Bank of India, on Thursday announced credit score-linked home loans at 6.70 per cent, regardless of the loan amount. A Cibil credit score of more than 800 will make a borrower eligible for a home loan rate of 6.7 per cent. With the onset of the festive season, SBI has also waived processing fees on home loans and occupation-linked interest premium.

Earlier a borrower taking a loan greater than Rs 75 lakh had to pay an interest rate of 7.15 per cent. With the introduction of the festive offers, a borrower can now avail of home loan for any amount at a flat rate of 6.70 per cent, leading to a saving of 45 basis points.

This translates to a huge interest saving of more than Rs 8 lakh for a Rs 75-lakh loan with a 30 year tenure, SBI said in a release. The lender also removed the distinction between salaried and non-salaried borrowers. Hitherto a non-salaried borrower had to pay 15 bps more for a hone loan.

“The 6.70 per cent home loan offer is also applicable to balance transfer cases,” C.S. Setty, MD (retail and digital banking) at SBI said.

Another state-owned lender, Bank of Baroda, announced a waiver of 0.25 per cent on its home loans and car loans across the board. In addition, the lender also announced a waiver of processing fee in home loans. Bank of Baroda’s home loan rates now start at 6.75 per cent while car loan rates start at 7 per cent, the lender said.

Last week, Kotak Mahindra Bank reduced its home loan rates by 15 basis points to 6.5 per cent, making it one of the lowest rates in the country in over a decade.

Anuj Puri, chairman, Anarock Group, said, “With this democratised interest rate, SBI addresses the huge housing demand in the metros. This year, we are likely to see significantly improved traction in the housing segment during the festive period.”