SBI cuts home, car loan rates

Thursday, August 02, 2012

State Bank of India has cut home loan and car loan rates. This could trigger a rate war among banks to attract retail customers as loans to industry have slackened.

SBI’s rate cut gambit comes in the wake of the RBI effecting a one percentage point cut in the statutory liquidity ratio on Tuesday. The SLR cut is seen allowing banks the cushion of additional liquidity.

India’s largest bank has cut home loans by up to 0.60 percentage points and car loans by 0.50 percentage points.

The interest rate on home loans up to Rs 30 lakh will be 10.25 per cent (10.50 per cent earlier).

On home loans beyond Rs 30 lakh and up to Rs 75 lakh, the bank will charge 10.40 per cent interest (10.75 per cent). The interest rate on home loans beyond Rs 75 lakh will be 10.40 per cent (11 per cent earlier).

SBI has cut interest rates on car loans to 10.75 per cent from 11.25 per cent earlier. The equated monthly instalment on car...

SCHEME OF 1% INTEREST SUBVENTION ON HOUSING LOANS

The Union Finance Minister during the Budget for 2009-10, had announced a Scheme of 1 per cent Interest Subvention in respect of individual housing loans upto Rs.10 lakh, provided the cost of unit does not exceed Rs.20 lakh. The validity period for the scheme is 1^st Oct 2009 to 31^st March 2011.

From 01.04.2011 onwards the scheme was modified with eligibility extended to individual housing loans upto Rs.15 lakh, provided the cost of unit does not exceed Rs.25 lakh. The present validity period for the scheme is 1^st April 2011 to 31^stMarch 2013.

HOME LOANS - INTEREST RATES

Interest Rate For Home Loan (House Building Loan)
All Rate are floating only

(Base Rate= 10.00% p.a.)


Loan Amount                   Linkage with Base Rate over    Effective Rate
                                        the tenor of the loan

Upto Rs. 30.00 lacs         0.75% above Base Rate           10.75% p.a.*

Above Rs. 30.00 lacs      1.00% above Base Rate           11.00% p.a.*
and upto Rs. 75.00 lacs

Above Rs. 75.00 lacs      1.25% above Base Rate           11.25% p.a.*

No fixed rate option in any limit bracket.


* A concession of 0.25% in card interest rate over the tenor of Home Loan is available under ongoing special Home Loan campaign upto 30.09.2012.