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SBI cuts housing loan rates

MUMBAI FEB. 1. Joining the interest rate war, State Bank of India has slashed the interest rate on housing loans by 0.75 per cent across the board.

While removing the slab of up to five years, the bank would now charge an interest of 9 per cent and 9.25 per cent on floating and fixed basis respectively for loans up to ten years, a top SBI official said.

Early last month, ICICI initiated a round of interest rate cut, reducing it by 0.5 per cent on housing loans up to five years. But SBI's decision goes across the board. For loans of tenure 10-20 years, SBI rate has been reduced to 9.5 per cent on floating basis and 9.75 per cent on fixed basis. The interest to be charged for up to ten years loans in floating category is 2.25 per cent below the State Bank Medium Term Lending Rate and 1.75 per cent below SBMTLR in the case of 10-20 years, he said.

The bank was considering providing some relief to the existing housing loan borrowers. The processing fee of 0.5 per cent has also been waived till March 31. — PTI

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