Decline in mortgage EMIs
New Delhi: In major relief for home buyers during Covid-19 times, State Bank of India (SBI) on Wednesday announced a concession of up to 25 basis points (bps) on rates home loans. This in turn will lead to a drop in IMEs while providing assistance to the struggling real estate sector.
In a statement, SBI said clients would get a 20 basis point interest concession despite 10 basis points earlier. An additional concession of 5 basis points for the use of the YONO app will be granted, he said.
“As an extension of its recently announced festive offers, the SBI is offering a concession based on the credit rating of up to 20bp, increased by 10bp earlier, for a mortgage greater than Rs 30 lakhs and less than 2 Rs crore across India. The same concession would also be applicable for a loan amount of up to Rs 3 crore in eight metropolitan cities. An additional concession of 5 basis points for all home loans will be granted if applied through YONO, ”the statement said.
He added that an additional interest concession of 5 basis points would be granted to women home buyers.
Currently, SBI charges interest rates at 6.90% for home loans up to Rs 30 lakh and 7% for higher Rs 30 lakh.
CS Setty, MD (Retail and Digital Banking), SBI, said the concessions would relate to existing tariffs.
“With the nation fully prepared for the post-COVID era, we are seeing an increase in customer demands and we at SBI will continue to deliver lucrative benefits tailored to customer needs and requirements,” CS Setty, MD (Retail and Digital Banking), Says SBI.
The interest rate starts at 7.5% on a car loan, while the rates are 7.5% and 9.6% on gold and personal loans, respectively.