In sync with the Reserve Bank of India's (RBI) mandate for banks to link all new floating rate loan products (home, retail, and auto) to external benchmarks with effect from 1st October 2019, State Bank Of India introduced new home loan schemes.
SBI has fixed its lending rate based on the external benchmark-linked rate (EBR) at 8.05%, positive news for the Real Estate Industry as well as for the Home Loan seekers. This would mean any changes in the key interest rate by RBI would be passed on directly to customers.
Noida, 26th September 2019: If you are looking for home loan assistance at cheaper interest rates, then you have a reason to celebrate as India’s largest lender, State Bank of India has recently changed its lending rate in sync with the external benchmark-linked rate (EBR) at 8.05% transmitting the benefit of lower interest rates to the consumer.
According to Real Estate News Noida, the bank has fixed its lending rate based on the external benchmark (EBR) at 8.05%. It has issued complete details about the interest rate structure for its new repo-rate linked home loan schemes.
2.65% (currently 5.4%) will be charged over the Reserve Bank of India’s repo rate. This change will largely impact the floating rate of home loans, retail loans, and loans for small businesses.
Starting this month (October), the list of interest rates for floating rate home loan products will come into effect. Good news for woman borrowers as the bank will offer a concession of 5 basis points on home loan rates to the woman borrowers.
To boost up lending to the MSME (Ministry of Micro, Small and Medium Enterprises) sector, the bank has voluntarily decided to extend the external benchmark-based lending to medium enterprises
If you are from the salaried class, taking home loans between INR. 30 lakh and INR. 75 lakh, then 40 basis points of the premium will be charged. It means the effective rate will be 8.45%. On the other hand, if you are a salaried class borrower looking for home loans up to INR. 30 lakh, then the lender will charge a premium of 15 basis points. It implies the effective home loan rate will be 8.20%.
Apart from SBI's latest announcement on loans, SBI has become the first Indian bank to have a branch in the Australian state of Victoria. It has inaugurated its Melbourne office on Monday to assist the growing trade and investment relations between the two countries.
As per the Property News Noida, in 4 consecutive bi-monthly reviews so far this year, the RBI has reduced the repo rate by a total of 110 basis points (1.1 percentage points). From October 4 onwards, the Central Bank RBI will introduce the next monetary policy for 2019-20.