GOOD NEWS: Home loan EMIs to drop, SBI announces interest concession up to 25 bps

New Delhi: In a major relief for home buyers in the times of Covid-19, the State Bank of India (SBI) on Wednesday announced a concession of as high as 25 basis points (bps) in home loan rates. This will in turn result in lowering EMIs while will also provide succour to the distressed realty sector.

In a statement, SBI said that customers would get an interest concession of 20 bps inspite of 10 bps earlier. Additional, 5 bps concession for using YONO app will be given, it said.

“In an extension of its festive offers announced recently, the SBI offers a credit score-based concession of up to 20 bps, raised from 10 bps earlier, for a home loan of above Rs 30 lakhs and below Rs 2 crore across India. The same concession would also be applicable for a loan amount of up to Rs 3 crore in eight metro cities. An additional 5 bps concession for all home loans will be given if applied through YONO,” the release read.

It added, 5 bps additional interest concession would be given to women home buyers.

Currently, SBI charges interest rates at 6.90% for home loan of up to Rs 30 lakh and 7% for above Rs 30 lakh.

C S Setty, MD (Retail and Digital Banking), SBI, said the concessions would be on the existing rates.

“With the nation all geared up for the post-COVID era, we are witnessing increased customer demands and we at SBI will continue to offer lucrative benefits suiting needs and requirements of the customers,” C S Setty, MD (Retail and Digital Banking), SBI said.

The interest rate starts from 7.5 per cent on a car loan, while the rates are 7.5 per cent and 9.6 per cent on gold and personal loans respectively.