India’s largest bank, the State Bank of India (SBI) on September 14 has decided to cut the base rate by 5 bps to 7.45 percent from Wednesday.
SBI will also cut the prime lending rate by 5 bps to 12.20 percent.
Earlier a borrower availing a loan greater than Rs. 75 lakh, had to pay an interest rate of 7.15 percent. With the introduction of the festive offers, a borrower can now avail home loan for any amount at a rate as low as 6.70 percent. The offer results in a saving of 45 bps which translates to a huge interest saving of more than Rs 8 lakh, for a Rs 75 lakh loan with a 30-year tenure.