India’s largest lender State Bank of India (SBI) has cut interest rates on home loans of upto Rs 30 lakh, from the current 8.60 percent to 8.35 percent, effectively from May 9.
“The effective interest rate for all eligible salaried customers will be 8.35% p.a. for loans upto Rs 30 lakhs. Over and above, an eligible home loan customer can also avail an interest subsidy of Rs 2.67 lakhs under the Pradhan Mantri Awas Yojana scheme,” the lender said.
“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 Rs 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.