State Bank of India (SBI) has cut interest rates on home loans of up to Rs 30 lakh, from the current 8.60 percent to 8.35 percent, effectively from Tuesday, May 9.
"The effective interest rate for all eligible salaried customers will be 8.35%p.a. for loans upto ₹30 lakhs. Over and above, an eligible home loan customer can also avail of an interest subsidy of ₹. 2.67 lacs under the Pradhan Mantri Awas Yojana scheme," the lender said in a statement.
"With this reduction, SBI's offering is the lowest in the market," SBI said.
For loans over Rs 30 lakh, the effective rate of interest rate will be 8.5 percent as against 8.60 percent currently. For more than ₹ 75 lakh, the rate remains unchanged at 8.6 percent.
Besides, eligible borrowers can also apply for Rs 2.67 lakh interest subsidy under the Pradhan Mantri Awas Yojana, according to SBI.
"We have seen a steep hike in the home loan enquiries recently and reduction in rates will further help millions of home buyers fulfil their dream of owning a home," Rajnish Kumar, managing director of National Banking Group, SBI, said in the statement.
SBI, India's biggest lender, offers home loans through its network of about 15,969 branches nationwide.
Simultaneously, the bank also reduced interest rates on deposits.
Deposits held for 2 to less than 3 years will now fetch 6.25 percent as against 6.75 percent earlier, the bank said, while senior citizens will get 6.75 percent, down from 7.25 percent currently payable.
SBI shares were trading 0.90 percent higher at Rs 298.60 on the BSE at around 3.06 pm.
