SBI announces special offers on home loans. Check details

On a loan of Rs 30 lakh (outstanding principal) having 15 years of residual tenure and 7.50% interest rate, the borrower can save up to Rs 1.52 lakh by transferring his loan to SBI.

SBI announces special offers on home loans. Check details

New Delhi: State Bank of India, the country's biggest lender, has announced special offers on home loans.  The lender said borrowers applying for home loan in SBI will get three benefits - nil processing fee, 0.10% interest concession for borrowers having higher Cibil score for loans above 30 lakh and less than 1 crore, additional 0.5% concession if applied through SBI's Yono app.

Interest rate on home loans have fallen to ove a decade low after the Reserve Bank of India reduced repo rate to 4% since the out break of Covid-19 pandemic. All new home loans at SBI are linked to external benchmark linked, which is at present 6.65%. SBI's EBR is linked to repo rate. At present, interest rate on SBI home loans vary between 6.95% to 7.45% for salaried customers  and for self-employed the rate varies between 7.10% to 7.60%.

Also, the concession on processing fees will help borrowers save up to 0.40% of the loan amount. 

Financial planners say the present situation is a good opportunity for home loan borrowers of other lenders, who still pay at MCLR or BPLR-linked rates, to transfer their loans to banks offering home loans at repo-linked rates. Borrowers having home loans linked to MCLR or BPLR are yet to get the full benefit of RBI's repo rate reduction.

Those having a residual home loan tenure of more than 15 years and paying more than 7.50% interest on their existing home loan, stand to benefit if they transfer their home loans to SBI.

On a loan of Rs 30 lakh (outstanding principal) having 15 years of residual tenure and 7.50% interest rate, the borrower can save up to Rs 1.52 lakh by transferring his loan to SBI.