SBI cuts interest rate for home loans to 6.70%

State Bank of India (SBI), the country's largest lender, has reduced the interest rate for home loans to 6.70 per cent.

While the interest rate for home loans up to Rs 30 lakh will start from 6.70 per cent, it will start at 6.95 per cent for loans in the range of Rs 30 lakh to Rs 75 lakh. For loans above Rs 75 lakh, interest rate will be 7.05 per cent, SBI said in a release.

The bank will also offer a concession of 5 basis points to women borrowers for home loans. Besides, customers applying for loan through YONO app will also get an additional interest concession of 5 basis points.

Also read: COVID-19 vaccine: First lot of Sputnik V arrives in Hyderabad

"The affordability for the consumer increases immensely with the present home loan interest rate offerings which reduce the EMI (equated monthly instalment) amounts substantially," SBI Managing Director (retail and digital banking) C S Setty said.

The bank was offering home loans at an interest rate starting from 6.70 per cent till March 31, 2021. From April 1, 2021, it restored the original interest rates starting from 6.95 per cent.

The lender commands over 34 per cent market share in home loans. Its home loan portfolio has crossed the milestone of Rs 5 lakh crore.

Also read: Delhi government extends COVID-19 lockdown by 1 week