SBI holds home loan rates | india | Hindustan Times
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SBI holds home loan rates

SBI, surprisingly did not pass on any benefit from its deposit rate cut to home loan seekers.

india Updated: Apr 23, 2012 21:15 IST
HT Correspondent

SBI, surprisingly did not pass on any benefit from its deposit rate cut to home loan seekers. The bank currently charges 10.75% interest on its home loans for amounts up to Rs. 30 lakh, while for amounts between Rs. 30 lakh and Rs. 75 lakh it charges 11%. For loan amounts exceeding Rs. 75 lakh, SBI charges an interest of 11.25%.

"By cutting deposit rates, SBI wants its cost of funds to come down first," said Kajal Gandhi, banking analyst, ICICI Direct.

"We expect it to cut base rate within a month because of the pressure from the government."

Analysts also said that SBI, due to margin pressures, did not have much leeway to cut rates.