Country's largest bank SBI on Tuesday slashed home loan rate by up to 0.15% on housing loan, a move likely to be followed by other lenders.
Home loans of up to Rs. 75 lakh would now be available to fresh borrowers at 10.10% against the existing rate of 10.15%, State Bank of India (SBI) said in a statement.
The bank has removed the additional concession of 0.05% given to women borrowers earlier and has brought in uniformity to all borrowers. With regard to loans of above Rs. 75 lakh, the new rate would be 10.15% from the existing rate of 10.15%, down by 0.15%.
"It has now been decided to offer uniform interest rate on home loans with effect from August 26, irrespective of the loan amount," it said. SBI home loans is available under two slabs - under Rs. 75 lakh and above Rs. 75 lakh.
Previously, the interest rates on home loans were revised downwards on December 20, 2013 with a separate interest rate structure for woman borrowers at 10.10% (on loans up to Rs. 75 lakh) and 10.25% (on loans above Rs. 75 lakh) too, it said.
In the August review of monetary policy the RBI kept short-term lending rate unchanged at 8%, while the cash reserve ratio (CRR) remained at 4% citing upside risks to inflation in view of uncertain monsoon and its impact on food production as also volatile international oil prices.
Subsequently, the bank rate was retained at 9%. In order to infuse additional liquidity, RBI decreased SLR for banks by 0.50% to 22% with effect from the fortnight beginning August 9.
A similar move in June had released an additional Rs. 40,000 crore into the system.