State Bank of India to Hold Home Loan Rates

Among the several loans offered by banks and housing finance companies in India, SBI home loan products are the most preferred options among home buyers. Being the apex financial institution in India, State Bank of India disburses a wide range of standard as well as personalized home loans to interested customers. With a range lying in between Rs.5 Lakh to over Rs.5 Crores, SBI aims at catering to the housing finance needs of people from all walks of life. All it takes is a little homework and one can easily secure ideal home finances at the best SBI home loan interest rates.

With several lenders revising their interest rates, while keeping the interests of their valued customers in mind, the mortgage market is experiencing a gradual growth lately. However, when it comes to SBI home loan deals, customers might be a bit disappointed by the recent decision taken by the topmost public sector financier in India. In a recent public meet, a senior official of the bank announced that SBI will retain its home loan interest rates for an undisclosed period of time.

The Reserve Bank of India (RBI), the Indian banking watchdog, lately kept its policy rates stable. However, in a recent announcement, the RBI lowered the borrowing limit for banks from the overnight facility. The lowering of the borrowing limit is generally followed by a rapid rise in the cost of funds for the lenders. Though the cost of funds is likely to go up in the near future, there will certainly be no change in the SBI home loan interest rates. However, there are some banks that have raised their lending rates, following the reduction in the borrowing limits, which is likely to increase the demand of SBI home loan deals in the market.

Being the most preferred lender in India, SBI still aims at providing maximum benefits to the customers by offering stable interest rates, personalized tenure, flexible repayment terms and superior customer service. As of now, the State Bank of India is charging an interest rate of 10.10% p.a. for a SBI bank home loan up to Rs.75 Lakhs from woman borrowers. However, for the amount of home loan exceeding Rs.75 Lakhs, the bank is now charging an interest rate of 10.25% p.a. Last month, SBI also decided to extend its special home loan scheme for women for an indefinite time period (earlier valid till 31st March), seeing the tremendous response it received all across the nation. On the other hand, from the regular borrowers, SBI demands an interest charge equivalent to 10.15% p.a. of the SBI bank home loan amount to Rs.75 Lakhs and 10.30% p.a. for amount above Rs.75 Lakhs.

Being categorized on the basis of the amount borrowed by an individual, home loan SBI can serve every distinct purpose of the borrower, ranging from new home/plot purchase or constructing a new home, to renovating or expanding a current residential property. One just needs to be careful while comparing the SBI bank home loan products with personal need and wants for making a wise selection to fulfill the long cherished dream of owning a house.