Country’s top player and leading mortgage lender State Bank of India (SBI) has cut down home loan rates between 10-25 basis points. This maneuver will push the other competitive lenders to make correction in their existing rates. Yet, SBI hasn’t chopped its marginal cost of lending rate (MCLR) which stands at 8% for one year.
As we all know the SBI owns pyramid position in the home loan market. SBI will now on charge salaried borrowers 8.35% on home loans up to Rs 30 lacs as against 8.60%. Lenders who borrow loan over 30 lacs have to pay the charge of 8.50%, down by 10 bps. For loan above 75 lacs, bank will maintain the charge of 8.60%. This improvised rate chart will benefit the new homebuyers, as for the subsidizing borrowers will pay one year fixed rate on interest according to the rule of arriving at lending rates.
As soon as the reduced rate hit the market, within a month time period five associate banks are merging with the parent bank. Presently SBI cut deposit rates by 50 basis points counter to different existing maturities.
The bank also declares that any home loan under the Pradhan Mantri Awas Yojana (PMAY) can avail an interest subsidy of Rs. 2.67 lacs. In attribution to the affordable housing project, SBI has introduced unique offerings for backing builders of low budget projects across the country. This includes both the construction finance and home finance for affordable projects. This move will profit potential homebuyers with budget constraints. People from weaker economic section can apply for home loans through multiple channels.
“Low-budget flats in Kolkata had never disappointed the realty market even after demonetization move. Now this outstanding contribution of SBI and other associate financial organizations will definitely drive the market demand towards affordable housing sector”- said Mr. Mahesh Somani, the RERA expert of West Bengal chapter. Speaking on the development of affordable housing project in Kolkata, Somani confirmed, “Affordable housing projects in Kolkata are much-ahead of its stereotype definitions. A low-budget flat is also coming along with basic luxury features and facilities in order to maintain the urban cult.”
- Somani Realtors New Network