After SBI, private banks slash lending rates: Here is how it affects you | business-news | Hindustan Times
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After SBI, private banks slash lending rates: Here is how it affects you

After State Bank of India, multiple private sector banks slashed interest rates on Monday as a surge in deposits following the ban on high-value bank notes sparked a race among the country’s lenders to woo consumers with cheaper home and vehicle loans.

business Updated: Jan 03, 2017 14:38 IST
Jyotindra Dubey
Home loans EMIs are about to get slightly cheaper.
Home loans EMIs are about to get slightly cheaper.

After State Bank of India, multiple private sector banks slashed interest rates on Monday as a surge in deposits following the ban on high-value bank notes sparked a race among the country’s lenders to woo consumers with cheaper home and vehicle loans.

The marginal cost of funding-based lending rates (MCLR) ranges from 0.90% (SBI) to 0.40% (IDBI Bank).

Here is how this affects you:

State Bank of India

- On a Home Loan of Rs. 20 lakh for 20 years, the EMI of a borrower is reduced by about Rs 835 per month (EMI down to Rs 17,546 from Rs 18,382) thereby saving Rs 10,025 per year.

- On a Home Loan of Rs. 50 lakh for 20 years, the EMI of a borrower is reduced by about Rs 2088 per month (EMI down to Rs 43,867 from Rs 45,955) thereby saving Rs 25,060 per year.

- On a home loan of Rs 75 lakh for 20 years, the EMI of a borrower is reduced by about Rs 2401 per month thereby saving Rs 28,812 per year.

IDBI Bank

- On a Home Loan of Rs. 20 lakh for 20 years, the EMI of a borrower is reduced by about Rs 518 per month (EMI down to Rs 18,059 from Rs 18,577) thereby saving Rs 6,216 per year.

- On a Home Loan of Rs. 50 lakh for 20 years, the EMI of a borrower is reduced by about Rs 1,296 per month (EMI down to Rs 45,147 from Rs 46,443) thereby saving Rs 15,552 per year.

- On a Home Loan of Rs. 75 lakh for 20 years, the EMI of a borrower is reduced by about Rs 1,944 per month (EMI down to Rs 67,721 from Rs 69,665) thereby saving Rs 23,328 per year.

With inputs from Suchetana Ray.