A day after the Reserve Bank of India put interest rates on hold, India’s largest bank State Bank of India (SBI) and mortgage lender Housing Development Finance Corp (HDFC) on Thursday slashed home loan rates for new borrowers.
For new women borrowers, SBI’s rates will be lower by another 0.5 percentage points.
While SBI reduced rates by 0.15-0.25 percentage points, HDFC has decided to slash rates by 0.25 percentage points for home loans availed before January 31. HDFC will now charge 10.25% for loans upto `75 lakh.
The new rates will be applicable from Friday.
“Good liquidity and low credit demand allowed SBI to cut home loan rates,” said SBI chairperson Arundhati Bhattacharya.
According to the revised rates, home loans up to Rs. 75 lakh will be available at 10.10% for women customers and 10.15% for male customers while home loans above `75 lakh will be available at 10.25% and 10.30% per annum, respectively.
The revised equated monthly installment (EMI) per Rs. 1 lakh for a 30-year loan will now be `885 for women and Rs. 889 for men against the existing Rs. 900.
Other private sector banks including ICICI Bank, however, have not decided whether to reduce rates. UCO Bank CMD Arun Kaul said the bank did not have any immediate plans to lower rates.