SBI Cuts Home Loan Interest Rate to 6.7% for any amount, zero processing fee

The country’s largest lender, State Bank of India, on Thursday announced credit score-linked home loans at 6.70 percent, 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 percent. With the onset of the festive season, SBI has also waived processing fees on home loans and occupation-linked interest premiums.

Earlier a borrower taking 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 of a home loan for any amount at a flat rate of 6.70 percent, leading to a saving of 45 basis points.

“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 basis points (bps) which translates into a huge interest saving of more than ₹8 lakh for a ₹75 lakh loan with a 30-year tenure,” the bank said.

Earlier the home loan interest rate was different for salaried and non-salaried homebuyers. Non-salaried borrowers had to pay higher interest rates than their salaried counterparts. “Now, there is no occupation-linked interest premium being charged to prospective home loan borrowers. This would lead to a further interest saving of 15 bps to non-salaried borrowers,” the bank clarified.

“Generally, the concessional interest rates are applicable for a loan up to a certain limit and are also linked to the profession of the borrower. This time, we have made the offers more inclusive and the offers are available to all segments of borrowers irrespective of the loan amount and the profession of the borrower,” said  CS Setty, Managing Director (Retail & Digital Banking), SBI.