The biggest lender in the country, National Bank of India (SBI) now offers exclusive interest rates on home loans from 6.70%. Interest rates for SBI home loans now start from 6.70 percent for loans up to Rs. 30 lakh and 6.95 percent for loans above Rs. 30 lakh and up to Rs 75 lakh. The large loans above Rs. 75 lakh would get mortgage loans of 7.05%. A 5 basis point concession is made available to the female borrower. One can also apply for a loan from the convenience of his home through the YONO app to earn an additional 5 basis points interest concession.
Previously, the SBI interest rate for home loans started from 6.70 percent for loans up to Rs 75 lakh and 6.75 percent for loans in the range from Rs 75 lakh to Rs 5 crore, as an offer until March 31, 2021. But, As of March 31, 2021. As of April 1, 2021, the SBI interest rate for home loans was 6.95 percent and above, depending on the amount borrowed, gender and credit profile of the borrower.
CS Setty, MD (Retail & Digital Banking) said, “SBI, the industry leader in home financing, is taking responsibility for strengthening consumer confidence in the home loan market. Affordability for consumers is skyrocketing with current home loan interest rates significantly reducing EMI amounts. I am sure that these measures will also boost the real estate sector ”.
Since October 1, 2019 RBI has mandated banks to offer private loans such as home and car loans that are tied to an external benchmark, which for most banks is the RBI repo rate. It is therefore called the repo-linked lending rate (RLLR). Every time RBI revises the repo rate, the interest rate revision is much faster for the borrower as compared to the loans associated with MCLR.
New borrowers who now need a loan will have to take it out according to the bank’s RLLR. Some banks call it an external benchmark rate (EBR). However, the banks may not offer loans on their RLLR, but depending on the amount borrowed and other factors, the effective rate may differ.
When you walk into a bank branch, you need to know two things: the bank’s RLLR and the home loan interest rate. While the RLLR for the bank is a flat rate for all borrowers, the effective interest rate for a home loan for you depends on your age, loan amount, CIBIL score, and other factors.