Two days after the Reserve Bank of India unveiled the monetary policy, State Bank of India has slashed interest rates on home loans above Rs 75 lakh by 10 basis points. The new rates are effective June 15, the bank said.
For salaried woman, the new rate will be 8.55 per cent while for others, it is 8.60 per cent. “Taking a cue from the recent RBI reduction in risk weightage on home loans, SBI is passing on the benefit to its customers by reducing its interest rates on home loan above Rs 75 lakh,” MD (national banking) Rajnish Kumar said.
The RBI had reduced LTV (loan to value) ratios, risk weights and standard asset provisioning rate for individual housing loans for new customers. For housing loans above Rs 75 lakh, the central bank lowered the risk weight to 50 per cent, from the earlier 75 per cent. The standard asset provisions, or the amount of money to be set aside for every loan made, on home loans was brought down to 0.25 per cent from 0.40 per cent. In April this year, SBI had reduced its interest rates by 25 basis points.
On the other hand, HDFC has been charging 8.35 per cent for women and 8.40 per cent others in the case of loans up to Rs 30 lakh since May 2017. For Rs 30 lakh to Rs 75 lakh loan bracket, HDFC’s rate if 8.50 per cent for all and above Rs 75 lakh, the rate is 8.55 per cent for all.