What happens to your home loan after State Bank of India cut rates

State Bank of India, country’s largest bank will charge an interest rate of 8.65% on home loans up to Rs 75 lakh, while for women the interest rate would be 8.60%.

Home loans up to Rs 75 lakh

A screen displaying the State Bank of India (SBI) logo before the start of a news conference in Kolkata. (Reuters)

State Bank of India, the country’s largest bank will charge an interest rate of 8.65% on home loans up to Rs 75 lakh, while for women the interest rate would be 8.60%.

A day after the reduction in marginal cost based lending rates (MCLR) by 0.90% to 8%, SBI said the home loans on floating interest rate would be 0.65% higher for above one-year MCLR rates.

SBI’s one-year MCLR rate now stands at 8%, cut from 8.90%.

Home loans above Rs 75 lakh

For loans above Rs 75 lakh, the interest rate would be 8.65% for women and 8.70% for others. These are all term loans.

For women to avail the offer, the woman borrower should be the sole applicant or one of the co-applicants for Home Loan and also the sole owner or one of the co-owners of the property proposed to be financed by the Bank.

On the other hand, under the ‘Max Gain’ home loans ranging from Rs 20 lakh to 75 lakh, the interest rates charged are 8.75% for women and 8.80% for others.

Fixed rate loans

Loans up to Rs. 30 lacs will be available with both Fixed and Floating Rate option.

The fixed interest rates would be 8.55% for the initial two years and thereafter linked to floating interest rates.

For women, this rate would be 8.50% for first two years thereafter linked to floating rate.