Home loans represent a major financial decision in any individual’s life. Home loans are possibly the largest loans taken by people in their lifetime. Home loans can be availed up to Rs. 10 crore in the country across several Indian banks and financial institutions at varied rates of interest. Various interest rates are offered at multiple Indian banks for home loans. Before applying for a home loan, you should always compare interest rates before choosing a bank for your home loan as per your own budget.
SBI (State Bank of India), India’s biggest lender, has officially lowered lending rates for home loans by a decent 10 basis points and this will be effective from 10th December, 2019 and this will make home loans considerably more affordable for borrowers. The new interest rates are a result of the 8th such cut in home loan interest rates in 2019 by SBI as per reports. Post this cut in interest rates, the 1-year MCLR (marginal cost based lending rate) has lowered to 7.9% per annum as compared to 8% previously. This certainly indicates good news for home buyers who are looking at applying for their loans soon.
Latest MCLR rates at SBI from 10th December, 2019
- Overnight- 7.65%
- 1 month- 7.65%
- 3 months- 7.70%
- 6 months- 7.85%
- 1 year- 7.90%
- 2 years- 8.10%
- 3 years- 8.20%
The interest rate cut comes a few days after the 6-member MPC (Monetary Policy Committee) of the RBI (Reserve Bank of India) met and decided on keeping the repo rate unchanged without any further cuts for the moment. The repo rate is currently at 5.15%.
Other aspects about SBI home loans
SBI has several short and long term home offerings. The interest rates are a little higher for short-term products as compared to standard long-term home loans. There are loans available for properties under construction and special offers for Government employees as well. You can login to YONO for applying for a home loan or call 1800112018. You can also send an SMS Home to 567676 for this purpose or visit the SBI banking branch nearest to you. You can also apply at www.homeloans.sbi or www.psbloansin59minutes.com.
SBI offers zero prepayment penalties and hidden costs and the processing charges are also on the lower side. You can lower interest outgo through regular loan prepayments and can get tenors up to 30 years as well. There are overdraft home loans available for borrowers along with special concessions on interest for female customers too.
With the latest round of MCLR cuts and new repo rate linked home loan offerings, SBI is certainly pulling out all the stops to get more home loan customers into the fold. Borrowers will certainly be delighted with the latest fall in the MCLR lending rate below the 8% mark. The lower rates of interest will certainly spur higher real estate sales throughout the country as well.