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SBI reduced the Home Loan rate by 25 basis point – Special focus for Women customers with 8.35% rate of Interest

By Priyanka Guha: -The largest Home Loan provider in India has taken a giant leap to give a fillip to the affordable housing segment by announcing a rate cut in Home Loans by 25 basis points to 8.35% per annum. With this reduction, SBI’s offering is the lowest in the market. The new rate will be effective from May 9th, 2017 The effective interest rate for all eligible salaried customers will be 8.35% p.a. for loans upto Rs. 30 Lakh for all women borrowers and 8.40% for others. Over and above, an eligible home loan customer can also avail of a maximum interest subsidy of Rs. 2.67 Lakh under the Pradhan Mantri Awas Yojana scheme, if otherwise eligible. The interest rates for customers availing a Home Loan above Rs. 30 Lakh have also been reduced by 10 basis points. To supplement the affordable housing push, SB1 has also come out with special offerings for Construction Finance to the builders for affordable housing projects by giving them a concession of 0.35% on interest rates on their otherwise eligible rates. The Bank has also tied up with CREDAI, India, in this regard. This will give a dual push both for construction finance and also for home finance for affordable homes.
Mr. Partha Pratim Sengupta, Chief General Manager, Kolkata Circle, said, ” that with this reduction in interest rates, there will be substantial savings for the home loans borrowers for e.g., for a loan of Rs 30Lakh for a period of 30 years, the savings would be Rs 1.97 Lakh.
State Bank of India (SBI) is the largest commercial bank in India in terms of assets, deposits, branches, customers and employees. The bank is well entrenched in the hearts of the citizens of the State which is amply evidenced by the performance of our Circle. Last year, we had disbursed Rs. 3125 Cr. in Home Loans and had grown by Rs. 1841 Cr. Our market share in the State is 28% which is the highest in the State. This year we are targeting a growth of Rs 2000 Cr in Housing Loan and a further Rs. 300 Cr. in allied Housing Loan products.
In PMAY to our performance was the best in the State with 222 Housing Loan being forwarded for a subsidy. This year despite having a target of 1500 cases we are confident of achieving our goal as one of our motto is “being the biggest Bank for the smallest person.”

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