SBI offers home loans at 6.7% during the festive season

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State Bank of India (SBI), the country’s largest lender, has launched a bouquet of festive offers for prospective home loan customers with home loan rates starting at as low as 6.7%.

Earlier a borrower availing a loan greater than Rs 75 lakhs, had to pay an interest rate of 7.15%. 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%.

The offer results in a saving of 45 bps which translates to a huge interest saving of more than Rs 8 lakhs, for a Rs 75 lakhs loan with a 30-year tenure.

Further, the rate of interest applicable for a non-salaried borrower was 15 bps higher than the interest rate applicable to a salaried borrower. SBI has removed this distinction between a salaried and a non-salaried borrower.

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 offers are aimed to make home loans more affordable in the festive season.

“The 6.70% home loan offer is also applicable to balance transfer cases. We believe zero processing fees and concessional interest rates in the festive season will make homeownership more affordable,” said C.S. Setty, Managing Director (Retail & Digital Banking), SBI.

The home loan portfolio of the bank has crossed the milestone of Rs 5 lakh crore. SBI commands a market share of 34.77% in the home loans segment.